Final answer:
A school cutting spending on scholarships to open more classes, leading to decreased student motivation, is an example of a change in educational incentives impacting student performance, particularly among high-performing students who are likely to be most affected by the reduction of such incentives.
Step-by-step explanation:
A school cutting spending on scholarships to open more classes resulting in less student motivation for good grades is an example of an unintended consequence of changing incentives within the education system. This scenario illustrates how financial policies can have a ripple effect on student behavior and academic performance. When scholarships, which serve as an incentive for high achievement, are reduced, it may disincentivize students who depend on these scholarships to excel academically. This can be especially discouraging for the highest-performing students who are often the most motivated by such incentives. The impact of these policy changes reflects broader discussions on how educational resources and management can shape the motivations and success of students. In contrast, lowest-performing students may see less impact, as they may not have been vying for scholarships. However, without proper incentives, the collective grade average may decline, demonstrating that incentives play a crucial role in maintaining or improving academic standards.