Econ: Rules and Incentives


hdg-quiz
Today’s lesson demonstrated how rules and incentives influence people’s economic behavior. Incentives are actions, awards, or rewards that determine the choices people make. Incentives can be positive or negative. When incentives change, people change their behaviors in predictable ways. People cooperate and govern their actions through both written and unwritten rules that determine methods of allocating scarce resources. These rules determine what is produced, how it is produced, and for whom it is produced. As the rules change, so do individual choices, incentives, and behavior.


Homework:
Chapter 2 Quiz II – closes Thursday 9/29

Arrows-02-june

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