Consider the Two Statements

Multiple Choice

Consider the two statements:
I. The closer "what you pay for" is to "what you want," then the more you can rely on strong incentives.
II. If you can't bridge the gap between "what you pay for" and "what you want" then strong incentive schemes can be better than weak incentive schemes.

A) I is true; II is false
B) I is false; II is true
C) I and II are both true.
D) I and II are both false.