Entrepreneur Innovation Profit Productivity Competition Content Standards and Benchmarks (4 and 14): Standard 4: People respond predictably to positive and negative incentives. Concepts: People respond to incentives. Benchmarks: Rewards are positive incentives that make people better off. Expectant parents are people too and when faced with incentives they will respond too. That is, individuals are normally compelled to act in a given manner if there is a perceived benefit for them. An incentive is an event, object, item of value or an action that is intended to spur an employee to work hard. The reality, however, is that the vast majority of people and corporations (especially corporations) are driven primarily by financial incentive. Some are motivated by a sense of duty or community in how they live their lives or the choices that they make. A) Yes, the student knows that going to college will help him receive a better paying job. The incentive to go to school involves self-interest. Bonus product with purchase – buy $100 worth of … To Conclude. For example, if you decide to offer … Free samples – the sample itself (such as diapers and baby formula mailed to expectant mothers) is the incentive. That is, people respond to incentives.When the price of an apple rises, for instance, people decide to eat more pears and fewer apples, because the cost of buying an apple is higher. All the rest is just commentary". D) Yes, everything an individual does involves incentives. People respond to many different types of incentives, some altruistic, most, not so much. It’s a well-known economic principle that people respond to incentives. Because people make decisions by comparing costs and benefits, their behavior may change when the costs or benefits change. C) No, an incentive does not exist since the student must pay a price to go to college. B) No, going to college does not involve an incentive. Such incentives affected people’s behavior, but they failed to promote the social cooperation necessary for a productive economy. In fact, if you’ve ever read one of the Freakonomics books or listened to the podcast, you’ll know that this theme comes up time and time again. Managers responded to incentives to increase the production of shoes, for example, by making only a few sizes, hardly caring which sizes best fit consumers. Bonus product with product trial – test drive a motorcycle and get a free pair of sunglasses. You don’t want people completing it more than once. That is , people respond to incentives 这就是说，人们会对激励作出反应。 That is , people respond to incentives 那就是，人们对刺激性因素的响应。 People respond to incentives 人们会对激励作出反应。 Peltzman ' s analysis of auto safety is an example of the general principle that people respond to incentives If you aren’t sure where to start, you can begin with testing a few different incentives. 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