Final answer:
Incentives are temporary rewards meant to encourage a specific behavior, while merit increases are permanent raises in salary based on performance. Incentives may have a short-term impact on behavior, but merit increases provide long-term financial stability and motivation.
Step-by-step explanation:
The question revolves around the distinction between incentives and merit increases in terms of their duration and effects on behavior. Incentives are typically temporary rewards or benefits given to encourage specific behaviors or outcomes. They may come in various forms such as financial bonuses, additional time off, or other perks. However, these are generally not permanent adjustments to an individual's compensation or status.
On the other hand, merit increases refer to a permanent raise in salary or wages given to an employee based on their performance, skills, or accomplishments. This encourages the employee to maintain a high level of performance and often has a lasting impact on their motivation and financial stability.
The key difference lies in the permanence and expected behavior outcome. A temporary tax cut or spending boost may influence behavior in the short term but is anticipated to have less of an impact on long-term decisions compared to a permanent adjustment. Similarly, offering temporary support to the unemployed might provide immediate relief but could potentially affect their motivation to seek employment differently than more sustained assistance.