Vocabulary
Something that motivates an individual to perform an action.
What is an incentive?
The ____ of American teachers is not linked in anyway to performance.
What is pay?
The pay of American teachers is not linked in anyway to performance.
What is true?
Working harder if you are paid on commission is an example of
What is incentive?
American teacher pay is based upon
What is education and experience?
Good intentions can lead to a bad outcome if incentives are not fully anticipated.
What is true?
Used or shared in common by everyone in a group
What is communal resources?
The uniform pay scale of teacher creates a set of incentives referred to as
What is adverse selection?
Good policy uses utility to channel behavior toward some desired outcome.
What is false?
_____ has an incentive to do a lot of things that are not necessarily in the best interest of the firm.
What is agent?
Since most talented teachers are likely to be good at other professions as well, they have a strong ____ to leave education for jobs that pay more.
What is incentive?
Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.
What is true
Burger King is the _____ and the cashier is the _____.
What is principal/agent?
Inadvertent incentives that can be created when we set out to do something completely different
What is perverse incentives?
Mexico's new driving law was efficient in reducing road congestion and increasing the number of people using public transportation.
What is false?