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People Respond To Incentives

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Emily Leshman

on 19 December 2015

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Transcript of People Respond To Incentives

People Respond To Incentives
This is Ms. Lisa, an economics teacher.
Ms. Lisa's student's don't pay attention when she teaches them about the 10 principles of economis.
Ms. Lisa wants her students to pay attention so they can learn more about economics, get good grades, and graduate.
This makes Ms. Lisa sad.
I love economics!
Ms. Lisa has an idea!
Ms. Lisa's students love treats...
...especially chocolate.
Ms. Lisa stands in front of her students with chocolate...
...and tells them if they answer her questions correctly at the end of lecture they will get chocolate.
The students pay attention and answer all the questions correctly...
...and of course receive chocolate.
All of those students did their best in all of their classes from then on and graduated in the spring, all thanks to Ms. Lisa...
... and the economic principle that "people resond to incentives".
by Emily Leshman
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