ECONOMICS
INCENTIVES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
It makes you laugh.
|
|
|
It makes you act or respond in a certain way.
|
|
|
It makes you want to spend money.
|
|
|
It makes you cry.
|
Detailed explanation-1: -Monetary incentives have two kinds of effects: the standard direct price effect, which makes the incentivized behavior more attractive, and an indirect psychological effect. In some cases, the psychological effect works in an opposite direction to the price effect and can crowd out the incentivized behavior.
Detailed explanation-2: -Incentive is a reason or motivation that encourages parties to engage in certain conduct or take certain actions. In the legal context, incentives are often created through laws, regulations, financial subsidies, or tax provisions.
Detailed explanation-3: -The incentive theory of motivation is a behavioral theory that suggests people are motivated by a drive for incentives and reinforcement. The incentive theory also proposes that people behave in a way they believe will result in a reward and avoid actions that may entail punishment.