Wednesday, June 19, 2019

How do people respond to economic incentives Term Paper - 1

How do people respond to economic incentives - Term Paper ExampleLiterally, positive incentives offer benefits to stakeholders inside an economic environment. For example, discounts reduce prices of products while bonuses are monetary gains sued to incentivize people. Contrarily, negative incentives discourage behavior by presenting undesirable economic consequences when pursued. Examples of economic incentives include fines paid upon infraction of predetermined economic regulations (Bowles 369). In practice, the use of economic incentives elicits particular reactions from people. Succeeding sections of this paper contain comprehensive evaluation of varied peoples reactions traceable to the use of economic incentives.As aforementioned, positive incentives encourage the pursuit of ones mouthfuls. Economically, financial gain attribute as the most important preference among people. Organizations use economic incentives to encourage frequent occurrence of desirable employees behavi or. On the other hand, negative economic incentives are used to discourage certain behaviors at heart a workforce. For example, employees who meet or exceed predetermined levels of productivity are often rewarded with cash bonuses (Butler and Town 99). Contrarily, employees with low levels of productivity are often exempted from incentive programs, until their productivity levels increase desirably. In this context, cash bonuses provide positive economic gains to the over-productive employees, while exemption from incentive programs provides negative economic effects to under-productive employees. Conventionally, financial achievements feature as a relatively uniform interest for most stakeholders within an economic environment (Bowles 371). In this case, economic objectives are often accomplished comfortably when positive economic incentives are used as rewards for accomplishing the objectives. Therefore, economic incentives invariably encourage desirable behaviors high employees productiveness.In the economics

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