Positive and Negative Incentives

CONTENT STATEMENT

15. Both positive and negative incentives affect individuals’ choices and behaviors.

CONTENT ELABORATION

Positive economic incentives reward individuals financially for making certain choices and behaving in a certain way, for example:

• extra money for raking leaves;
• free toy with a meal; and
• allowance for doing chores at home.

Negative economic incentives penalize individuals financially for making certain choices and behaving in a certain way, for example:

• late fee for a library book;
• cost of receiving a speeding ticket; and
• fine for littering at the park.

EXPECTATIONS FOR LEARNING

Give examples of positive and negative incentives that affect individuals’ choices and behaviors.

Searched: Incentives management

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