Examples of disincentives are user fees or pollution taxes. For example: A fall in incomes will lead to a rise in demand for own-label supermarket foods From biblical times to the very recent past, children were thought to be better motivated through negative incentives — known in the bible as the “rod” and two generations ago as “a good spanking” — than positive incentives. A good example is the case of outsourcing in the early 2000’s. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Positive and negative incentives •Positive incentives encourage action. a. Start studying Positive and Negative Incentives. Negative incentives refer to bad consequences, such as losses and fines, which can discourage the behavior. Research however, shows that negative incentives; incentives that require individuals to perform in order to avoid a loss, are more motivating than positive incentives, which motivate individuals through a gain. Negative incentives refer to bad consequences, such as losses and fines, which can discourage the behavior. - Extra credits can be used to incentivize students to participate more in class - A tax cut in the agricultural sector is a good incentive for people to invest more in the sector •Negative incentives also … The main disadvantage associated with economic incentives is that they can be inappropriate for dealing with environmental issues that pose equity concerns. Negative economic incentives, or disincentives, punish people financially for taking certain actions. Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence.Positive economics deals with objective explanation and the testing and rejection of theories. This is a way of encouraging specific actions without making them compulsory. Provide illustrations of negative and positive, monetary and non-monetary incentives and how they shape behavior. 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