Incentives According To Freakonomics

According to Freakonomics, “An incentive is simply a means of urging people to do more of a good thing and less of a bad thing”. In economics, incentives are offered to set an objective or a goal and accomplish a task for a specific purpose. For instances, buyers buy merchandise when the items benefit them. In 2012, my employer motivated his employees to achieve outstanding fourth quarter sales by giving away IPads; this incentive was given to encourage employees to become more productive. Another example, Dr. Cheng gives 5 extra credit points on her test, it motivates her students to maximize their learning abilities in the class to earn an A. Incentives can be in the form of a raise, event, gift card, trip or bonus.
It relates to the study of economics by providing incentives to influence or encourage others to do well. Incentives provide us with the motivation to …show more content…
Another example, information that is not given but still has the strength to change a person decision. The first example, I went to the doctor for my annual checkup, my medical doctor gave advice and ordered test because she specializes in medicine and knows what is best for my health. A medical doctor is more experienced and educated than their patients. Secondly, if someone took their car to a repair facility, the mechanic would know if the car needs a transmission or motor because they have greater knowledge about the recommended repairs than the owner. A car mechanic knows more about cars than their clients. Thirdly, an attorney has access to confidential information that the client cannot access, which leads to the attorney having more information than the client. An attorney is more experienced at handling legal cases than their clients. An attorney has access to confidential information that the client cannot access, which leads to the attorney having more information than the