Economics professors are well aware of the importance of incentives.Which of the following situations shows the use of a positive incentive?
A) Students who show up late to class will not be allowed in the classroom.
B) Students who do not have a doctor's note will not be allowed to take an exam at a different time.
C) Students can choose whether or not they want to attend class-there is no attendance policy.
D) Students can choose to do extra credit at the end of the semester.
E) The professor decides to teach the class by reading out of the textbook to the entire class.

Question

Quizplus · Accepted Answer

Offering extra credit at the end of the semester is a positive incentive as it rewards students for working harder and can motivate them to improve their grades. Choices A and B are negative incentives, as they punish students for negative behavior. Choice C does not offer any incentive for attending class, positive or negative. Choice E is not related to incentives at all.

Economics Professors Are Well Aware of the Importance of Incentives