Which statement best describes incentives?

A) Incentives are mostly positive.

B) Incentives are mostly negative.

C) Incentives can be positive or negative.

D) Incentives are neither positive nor negative.

C) Incentives can be positive or negative.

Explanation:

This is a subject matter of economics:

Incentives are the measures to encourage or sometimes even discourage certain behavior.

They can be positive as well as negative.

As in positive terms it is kind of extra benefit or cost savings, as for example discounts offered, extra coupons provided, these types of perks enhances human activities in that particular area.

As in negative terms it is a kind of extra cost to be incurred, for example in a daily life, the fines, penalties for doing such an act, will again demand the individual to perform in specified manner, and will lead to certain behavior.

Therefore, correct option is:

C) Incentives can be positive or negative.