A Consumer Might Respond to a Negative Incentive by

Positive and Negative Economic Incentives

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Focus Question:  How people reply to positive and negative economic incentives?

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Topics on the Folio

Positive Incentives

Negative Incentives

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Click here for a definition of
Economic Incentives

Positive Incentives

: fiscal rewards for making specific choices or taking sure actions. For example, buying certain items at the store, eating at certain restaurants, or choosing certain companies.

Negative Incentives

: fiscal punishment for making specific choices or taking certain actions. For example, speeding or littering.

Businesses and government agencies offer incentives.

  • Businesses like restaurants or stores offering
    positive incentives
    like discounts or coupons in social club to become people to cull their business organisation.
    • In the long run,it is hoped that this volition bring in a client to the business so it tin make more money.
      • People frequently respond to positive incentives past choosing the companies that offering them the best reward.

  • People also respond to
    negative incentives.
    • The authorities offers negative incentives in the hope that it volition proceed people from breaking the law.
      • For example, there is a fine for speeding and for not wearing your seat chugalug. At that place is as well a fine for littering. This negative incentive keeps people from committing these acts because they do not desire to pay the penalisation.

  • “Why Markets Piece of work” from learner.org detailing the primal concepts of the market place, including incentives.
  • Video about how motivation may be in fact driven by purpose and non monetary incentives. Discusses how positive and negative incentives represent rewards or punishment.
  • Kahn Academy video about Incentive theory.
  • Clickhere for a video detailing economic incentives
  • Clickhither for a YouTube video discussing the power of economical incentives
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At that place is a recent move in the US to move abroad from negative incentives in the Justice Organization. The argument is that negative incentives, such every bit littering laws and fees for broken tail lights reinforce systems of poverty because they disproportionately affect low income people.

For an commodity nearly scaled fees as a mode to continue implementing negative economic incentives, wait at

  • A Billionaire and a Nurse Shouldn’t Pay The Same Fee For Speeding, past the New York Times Opinion Page, and
  • Texas Legislature Considers Bills to Interruption the Cycle of Debtor’s Prison, by the Texas Observer.

For an excellent overview of the way that fees and fines create a serial of cascading negative economic incentives and their impact on poor communities, especially those of colour, check out How Fines and Fees Criminalize Poverty: Explained, by The Appeal.

Click hither for an commodity discussing how governments employ economic incentives to increment inequality

For an article by the Human being Rights Watch, an international arrangement that focuses on human rights abuses around the world, check out: U.s.a. Justice System Fuels Poverty Bike.

For an article nigh changing US policy from negative incentives to positive incentives, check out: The Other Side Of Cleaved Windows past The New Yorker.

For an article most culling methods to negative incentives with regard to littering, check out: Littering and Post-obit the Crowd, past The Atlantic.

The source mentioned at the bottom,
, is an excellent resources with clear examples and explanations. Information technology has a usefulworksheet most economic incentives, and other ideas for a constructive classroom lesson as well.

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  • Here is a page from econedlink.org with a discussion of incentives, both positive and negative, in the style of a lesson for the earlier grades. It could be modified slightly to piece of work with older grades also.
    • Here is another folio from the same site which walks students through identifying which is a positive incentive vs. a negative incentive. The examples could be slightly modified depending on course level.

Economical Incentives in Our Customs is some other lesson plan to help illustrate the concept.

Click here for a study detailing the differences in how men and women respond to incentives

Lesson program outline from econedlink.org that allows students to call up well-nigh examples when their decisions were swayed based off of an incentive.

Click here for a lesson plan on economic incentives

Click here for a lesson program on Incentive Theory


Authorities agencies apply which of the post-obit to prevent people from breaking laws.

A. Positive incentives

B. Negative Incentives

C. Economical Rewards

D. Economic Returns

Respond: B

A Consumer Might Respond to a Negative Incentive by

Source: http://resourcesforhistoryteachers.pbworks.com/w/page/126082265/Positive%20and%20Negative%20Economic%20Incentives