1. [1.5 points] "People respond to the same incentive differently." Use one example in your daily life to prove this statement (20-50words).

Sample answer

I use 20-minute screen time as a positive incentive to motivate my kids to exercise. My oldest daughter chooses to exercise and my youngest daughter chooses to play with her doll. The same incentive works for my oldest, but not for my youngest.

2. [1.5 points] Use one example to explain opportunity cost (20-50 words).

Sample answer

If a gardener decides to grow carrots, his or her opportunity cost is the alternative crop that might have been grown instead (potatoes, tomatoes, pumpkins, etc.).

3. [2 points] Use one example to explain positive incentives (20-50 words). Use a different example to explain negative incentives (20-50 words).

Sample answer

An example of positive incentives:

Daycare teachers use candy or stickers to encourage young children to behave well.

An example of negative incentives:

Police officers use speeding tickets as incentives to discourage people from driving too fast.