ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A mechanic changes the oil on your car.
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Your mom gives you a brownie in your lunchbox.
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You find a penny on the ground.
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Your teacher says if you finish your work early, you can have extra recess.
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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: -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-3: -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-4: -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.