Which of the following types of power do monetary incentives represent?

• A. Coercive power
• B. Economic power
• C. Legitimate power
• D. Referent power

Answer: (B)

Verified step by step guidance

1. Understand the concept of power in microeconomics and organizational behavior, where power refers to the ability to influence others' behavior or decisions.
2. Identify the types of power: Coercive power (based on fear or punishment), Legitimate power (based on formal authority), Referent power (based on admiration or identification), and Economic power (based on control over resources or incentives).
3. Recognize that monetary incentives involve offering financial rewards to influence behavior, which relates to control over economic resources.
4. Match monetary incentives to the type of power that involves control over economic resources, which is Economic power.
5. Conclude that monetary incentives represent Economic power because they influence behavior through financial means rather than authority, fear, or personal admiration.