Economic incentives
What Economic incentives means in Economics A-Level, as defined for AQA.
Definitions of Economic incentives
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Reference: AQA
Financial or non-financial rewards and penalties that alter the costs and benefits of a choice and motivate agents to change their behaviour.
What market-based policies improve, for example by cutting income tax to incentivise labour participation.
The financial motivations that drive the behaviour of economic agents.
Topics that use Economic incentives
- Consumer behaviour (AQA A-Level)
- How markets and prices allocate resources (AQA A-Level)
- Supply-side policies (AQA A-Level)
Related terms
- Incentives
- Asymmetric information
- Capital investment
- Decision making
- Economic efficiency
- Equity versus efficiency
- Equity vs efficiency
- Ethics in economics
Using Economic incentives in the exam
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