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A cost or benefit that motivates a decision or action by consumers, businesses, or other participants in the economy.
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Incentive & Self Interest

Published on Nov 21, 2015

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1.

INCENTIVE & SELF INTEREST

BY BRENDA QUINONEZ / HAUG 3
A cost or benefit that motivates a decision or action by consumers, businesses, or other participants in the economy.
2.

INCENTIVE

  • Definition:
  • A cost or benefit that motivates a decision.
3.

Example of Incentive:
*Offering someone a bonus for specific work being done in a certain amount of time is a financial incentive.

4.

ECONOMIC INCENTIVES USE MONEY TO

  • Encourage you
  • Persuade you
  • Convince you
  • Reward you
5.

SELF INTEREST

  • Definition:
  • Whenever you do something primarily to benefit yourself, you are acting in self-interest.
6.

EXAMPLE OF SELF INTEREST

  • Buying college textbooks so you can pass your classes is a self interest
7.

"Adam Smith, the father of modern economics, famously explained that it is possible to achieve the best economic benefit for all even when, and in fact because, individuals tend to act in their own self-interest.
"

Brenda Quinonez