Author Question: Provide two examples of a monetary incentive and two examples of non-monetary incentive, a carrot ... (Read 65 times)

bclement10 · **on:** Jun 29, 2018

Provide two examples of a monetary incentive and two examples of non-monetary incentive, a carrot and a stick of each, that government policies use to influence behavior.

What will be an ideal response?

Question 2

Use headlines from the recent news to illustrate the potential for conflict between self-interest and the social interest.

What will be an ideal response?

zenzy · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A monetary carrot that the students might answer because it is close to their lives is student aid, such as Pell grants. A monetary stick might be taxes on liquor. A non-monetary carrot is government support for youth sports, such as allowing little league teams to use a county park, and a non-monetary stick is jail terms for illegal drug or alcohol use.

Answer to Question 2

One example of an issue concerns the income necessary to live in an apartment building in San Francisco. A May 5, 2014 headline from The San Francisco Chronicle was S.F. Landlord: Make 100K or Get Out. This story discusses an owner's attempt to make the tenants prove that their annual income is at least 100,000 . The owner is following his self-interest because he wants to have only high-income residents who, presumably, create less damage and might be willing to pay more rent. The head of San Francisco's Housing Rights Committee, Sara Shortt, believes that the requirement is not in the social interest. She asserts that the effort definitely reads like a harassment tactic and that the effort to force tenants to move is illegal. She believes that the social interest is served by having a variety of tenants in the apartments.