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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
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 2In 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.
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