ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ good, helpful, or useful.
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____ bad or harmful.
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Either A or B
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None of the above
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Detailed explanation-1: -A negative incentive would be that you won’t get a bonus unless you meet your target goal. The positive incentive gives employees a reward to work towards, while the negative incentive says there will be no reward unless employees meet their goals.
Detailed explanation-2: -Incentives can be either positive or negative, and can thus encourage or discourage a particular action.
Detailed explanation-3: -an object or condition that constitutes an aversive stimulus and therefore facilitates avoidance behavior.
Detailed explanation-4: -New research shows that negative incentives-incentives that require individuals to perform in order to avoid a loss-are more motivating than positive incentives, which motivate individuals through a gain (for example, a bonus).