CONTENT STATEMENT
- 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.