Role of Producers & Consumers<br /> in a Market Economy<br />EPF2a. Incentives<br />
Essential question:<br />What is an incentive?<br />2<br />
Incentives<br />Definition: something that makes a person try or work hard or harder<br />Incentives influence people’s be...
Essential question:<br />How do incentives influence behavior?<br />4<br />
Incentives influence behavior by:<br />A positive incentive is a reward or other inticement that ENCOURAGES a behavior<br ...
Essential question:<br />How do consumers, producers, workers, savers, investors & citizens respond to incentives?<br />6<...
Value and/or lower price is an incentive for consumer<br />7<br />
Profit is an incentive for producers<br />8<br />
Pay and benefits are incentives to workers<br />9<br />
Interest earned is an incentive for savers<br />10<br />
Capital gain is an incentive for investors (ex. buying at $10 & selling at $15 = a $5 capital gain)<br />11<br />
Citizens have an incentive to vote for politicians who share their views<br />12<br />
Interest groups have an incentive to seek to influence politicians to vote in ways that benefit their group.<br />13<br />
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Epf2a incentives

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Epf2a incentives

  1. 1. Role of Producers & Consumers<br /> in a Market Economy<br />EPF2a. Incentives<br />
  2. 2. Essential question:<br />What is an incentive?<br />2<br />
  3. 3. Incentives<br />Definition: something that makes a person try or work hard or harder<br />Incentives influence people’s behavior<br />3<br />
  4. 4. Essential question:<br />How do incentives influence behavior?<br />4<br />
  5. 5. Incentives influence behavior by:<br />A positive incentive is a reward or other inticement that ENCOURAGES a behavior<br />Ex. prizes, wages<br />A negative incentive is a penalty that DISCOURAGES behavior<br />Ex. library fine, parking ticket<br />5<br />
  6. 6. Essential question:<br />How do consumers, producers, workers, savers, investors & citizens respond to incentives?<br />6<br />
  7. 7. Value and/or lower price is an incentive for consumer<br />7<br />
  8. 8. Profit is an incentive for producers<br />8<br />
  9. 9. Pay and benefits are incentives to workers<br />9<br />
  10. 10. Interest earned is an incentive for savers<br />10<br />
  11. 11. Capital gain is an incentive for investors (ex. buying at $10 & selling at $15 = a $5 capital gain)<br />11<br />
  12. 12. Citizens have an incentive to vote for politicians who share their views<br />12<br />
  13. 13. Interest groups have an incentive to seek to influence politicians to vote in ways that benefit their group.<br />13<br />

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