Microeconomics
Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
Question
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Chapter 1, Problem 6PA
To determine

(a)

Whether "Bosses who offer time-and-a-half for working on holidays" is a positive or a negative incentive.

To determine

(b)

Whether "Mandatory minimum sentence for drug offences" incentive is positive or negative.

To determine

(c)

To find whether the incentive of "Fines for littering" is positive or negative.

To determine

(d)

To find whether the incentive of "Extra allowance money for good grades" is positive or negative.

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What does the term Incentive mean?(A) It is the opposite of a tradeoff.(B) It could be a reward but could not be a penalty.(C) It could either be a reward or a penalty.(D) It could be a penalty but could not be a reward.
Incentives matter. Which of the below situations that find DOES NOT indicate a strong positive alignment of incentives with higher output and creativity?   Bill Gates dropped out of Harvard to found Microsoft, which made him one of the richest men on the planet and launched the computer revolution in the process - making all of us better off too.       When we are paid on commission we work harder.       "From each according to his abilities, to each according to his needs."
Give an example of some action that has both a monetary and nonmonetary opportunity cost.
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