Try Magic Notes and save time.Try it free
Try Magic Notes and save timeCrush your year with the magic of personalized studying.Try it free
Question

Consider the following examples. For each one, say whether the incentive is positive or negative.

a. Bosses who offer time-and-a-half for working on national holidays.

Solution

Verified
Answered 2 years ago
Answered 2 years ago
Step 1
1 of 2

In order to answer this question, firstly we should determine what incentive means, and also how it can be manifested.

Incentive refers to the changes in people's behavior through changes in the trade-offs they face. It can be positive or negative.

Positive incentive causes people more likely to change the trade-offs they face because they should give up fewer other things.

Negative incentive causes people less likely to change the trade-offs they face because they have to give up more alternative purchases.

Create an account to view solutions

Create an account to view solutions

Recommended textbook solutions

Microeconomics 2nd Edition by Dean Karlan, Jonathan Morduch

Microeconomics

2nd EditionISBN: 9781260152616Dean Karlan, Jonathan Morduch
1,440 solutions
Principles of Economics 7th Edition by N. Gregory Mankiw

Principles of Economics

7th EditionISBN: 9781285165875N. Gregory Mankiw
1,397 solutions
Principles of Economics 8th Edition by N. Gregory Mankiw

Principles of Economics

8th EditionISBN: 9781305585126N. Gregory Mankiw
1,359 solutions
Cambridge IGCSE Business Studies 4th Edition by Karen Borrington, Peter Stimpson

Cambridge IGCSE Business Studies

4th EditionISBN: 9781444176582Karen Borrington, Peter Stimpson
686 solutions

More related questions

1/4

1/7