ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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incentive
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profit
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choice
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opportunity cost
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Detailed explanation-1: -For customers, an example of a financial incentive is a discount, like a buy-one-get-one-free sale, which encourages more spending under the guise of saving. 3.
Detailed explanation-2: -Economic incentives meaning can be referred to as a reward or motivation provided in monetary terms. It produces a desired response from the parties by altering their natural behavior. Examples of incentives are subsidies, tax credits, discounts, and cashbacks.
Detailed explanation-3: -Incentives are benefits or costs of an action that influence people’s decisions and behavior. Stated another way, incentives can make people do something they wouldn’t otherwise do. Incentives are important to economics for two reasons: how people respond to them and how they are created and used.
Detailed explanation-4: -Compensation incentives. Compensation incentives tend to cover some of the more basic incentive options. Recognition incentives. Reward Incentives. Appreciation incentives.
Detailed explanation-5: -Economic Incentives – Material gain/loss (doing what’s best for us) Social Incentives – Reputation gain/loss (being seen to do the right thing) Moral Incentives – Conscience gain/loss (doing/not doing the ‘right’ thing) 15-Jun-2014