Question

If a city charges people a fine for littering in the park, what type of incentive is the fine an example of?
Responses

positive incentive
positive incentive - no response given

neutral incentive
neutral incentive - no response given

negative incentive
negative incentive - no response given

opportunity cost

Answer 1

The fine for littering in the park is an example of a **negative incentive**. Negative incentives are designed to discourage certain behaviors by imposing a penalty or cost for engaging in that behavior. In this case, the fine aims to deter littering by making it financially costly.