Question

Suppose the government imposes regulations that reduce the amount of pollution in the air. In four or more sentences, define incentive, explain the government's incentive for this regulation and how effective this process is.

Answer 1

An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure). Ultimately, incentives aim to provide value for money and contribute to organizational success. Government’s incentive is very effective among big companies because they will be force to do better and a reward is also waiting for them.

Answer 2

Answer:

An incentive is something that motivates an individual to act or refrain from a certain act. One incentive for the government to impose regulations to reduce pollution in the air could be that pollution is harmful to the earth and the creatures living on earth. If humans, their beloved pets, and the animals used to make food start getting sick due to air pollution, the government would have to spend more of its resources on taking care of the sick instead of enveloping themselves in comfort. Since the people(both civilians and those with governmental power) would not enjoy losing the comforts they have grown accustomed to, the regulations would most likely be used only enough to keep comfort at the forefront of the mind rather than survival; However, the actual effectiveness of the regulations really depends on what the regulations are, in other words, how extensive they are, and how easily followed they are(a good example is mask-wearing).

Explanation:

Had this question on a quiz, so I wrote this as my answer.