Answer
Policymakers should consider that people respond to incentives because they can increase overall productivity in the economy by rewarding people for hard work.
Work Step by Step
People respond to incentives. In other words, people often base their behavior on how they think a particular action will be punished or rewarded. For example, if a worker knows that he/she will receive a large bonus for working hard, he/she will be more likely to work harder.
