Question

Giving an employee a raise for performing well at a job is an example of what kind of incentive?

a. Tax incentive
b. Financial incentive
c. Subsidy
d. Tax rebate

Answer 1

A raise for good job performance is a financial incentive, aimed at enhancing employee productivity through direct monetary reward. Alternatively, purposive incentives appeal to one's belief in a cause, and government subsidies help firms by reducing costs, increasing supply.

Step-by-step explanation:

Giving an employee a raise for performing well at a job is an example of a financial incentive. This type of incentive is direct monetary compensation for a job well done, which encourages the employee to maintain or improve their productivity. In the given scenario, the businessman who comforts himself with the idea that hard work is its own reward is utilizing intrinsic motivation rather than seeking an external financial incentive.

Another type of incentive addresses concerns about a cause, known as purposive incentives. These are designed to appeal to someone's belief in the worthiness of the tasks or goals themselves, rather than providing a financial benefit.

A government subsidy lowers the cost of production for a firm by providing direct payments or tax reductions for specific actions, which in turns shifts the supply curve to the right; it encourages increased production by making it more affordable for firms to produce goods or services.

Answer 2

A raise for good job performance is a financial incentive, designed to reward and motivate employees. Other examples include bonuses and commissions. There are also tax incentives, subsidies, and tax rebates, with purposive incentives appealing to those motivated by causes.

Step-by-step explanation:

Incentives in the Workplace

Giving an employee a raise for performing well at a job is an example of a financial incentive. This type of incentive directly relates to monetary benefits provided to employees to encourage productivity and job satisfaction. Examples of financial incentives include raises, bonuses, and commission payments.

Categories of Incentives

Other types of incentives include:

Tax incentives, which are benefits like deductions and credits that reduce the amount of tax owed.

Subsidies occur when the government pays a firm directly or reduces the firm's taxes, often to encourage production and shift supply to the right.

Tax rebates, which are returns of excess amounts of income tax that a homeowner has paid to the state or municipal government.

Regarding different incentives that appeal to someone's concern about a cause, purposive incentives are those that appeal to individuals who are driven by the purpose or mission behind an action or organization.