Perverse Incentives: Definition & Examples


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question 1 of 3

_____ are incentives that result in unintended negative consequences due to actions people take to receive the incentive.

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1. Which of the following statements about perverse incentives is true?


Sally is a kindergarten teacher. One morning, one of her students accidentally knocked over the large basket full of crayons on the corner of her desk, scattering them across the classroom. Sally told the students they could have an extra ten minutes of recess time if they helped her pick up the crayons. They happily complied, and then enjoyed an extra ten minutes on the playground. The next day, when Sally was helping one of her students tie his shoelace, she was dismayed to see a student out of the corner of her eye deliberately 'bump' the basket, spilling the crayons onto the floor. 'Uh oh,' she thought. 'What was I thinking!'

This is an example of _____.

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About This Quiz & Worksheet

Explore the subject of perverse incentives with this quiz and worksheet. Topics you'll need to know include determining the correct phrase for negative consequences that are unintended and the characteristics of this happening.

Quiz & Worksheet Goals

With this quiz and worksheet you will learn to:

  • Analyze examples of given scenarios
  • Choose a scenario that does not exemplify perverse incentive
  • Understand why it is important to carefully consider your actions

Skills Practiced

Practice the following skills with the worksheet and quiz:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on perverse incentive
  • Critical thinking - apply relevant concepts to examine information about thinking before you act in a different light
  • Knowledge application - use your knowledge to answer questions about examples of perverse incentive

Additional Learning

Use this lesson entitled Perverse Incentives: Definition & Examples to learn more about this subject. The lesson will cover the following objectives:

  • Analyze examples in the lesson
  • Understand why it is important to think before offering incentives
  • Recognize the lessons learned from perverse incentives