ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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positive incentive.
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negative incentive.
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Either A or B
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None of the above
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Detailed explanation-1: -Positive incentives can include praise, bonuses, career advancements, earning extra vacation days, gift certificates and other monetary rewards.
Detailed explanation-2: -Positive incentives are any offers that make consumers more likely to purchase something. They include discounts and free samples. For example, offering free shampoo samples with the purchase of a conditioner at full price can convince consumers to purchase the shampoo next time they are at the store.
Detailed explanation-3: -Money, hugs, stickers, and field trips are positive incentives. These are things you want to get. Negative incentives make people worse off and are called “penalties.” Losing TV time, not swimming, missing PE class, and time out are negative incentives. These are things you do not want to happen.
Detailed explanation-4: -Which is an example of a negative incentive for producers? Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%. The consumer no longer prefers the iced tea drink.