ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rewards incentives that make people better off.
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Penalties that make people worse off.
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Either A or B
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None of the above
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Detailed explanation-1: -Negative incentives (disincentives) are penalties that are intended to discourage behaviors that make people worse off, and there may be a monetary penalty that must be paid or some other measurable penalty for doing so.
Detailed explanation-2: -They can encourage cheating, shortcuts & unethical behavior Rewards tied to sales quotas, revenue targets and other short-term, extrinsic targets can encourage bad behavior and cheating.
Detailed explanation-3: -Negative incentives leave you worse off financially by making you pay money. These incentives cost you money. Fines, fees, and tickets can be negative economic incentives. They are called negative because they are things you don’t want to get.
Detailed explanation-4: -Negative Incentives: financial punishment for making specific choices or taking certain actions. For example, speeding or littering.
Detailed explanation-5: -Negative Incentives Negative incentive is generally resorted to when positive incentive does not works and a psychological set back has to be given to employees. It is negative by nature. For example-demotion, transfer, fines, penalties.