Answer
Policymakers need to think about incentives so they can understand how people will respond the policies they put in place. The text's example of seat belt laws shows that policy actions can have unintended consequences. If incentives matter alot, they may lead to a very different type of policy; for example, some economists have suggested putting knives in steering columns so that people will drive much more carefully! While this suggestion is silly, it highlights the importance of incentives.
Work Step by Step
Read about policymakers in the chapter to get your conclusions about their actions into your learning.
