2- why should policymakers think about incentives?

Answer

This is because Many policies change the costs or benefits that people face and therefore alter their behavior. If policymakers don't consider the effects of their policies on incentives, they often end up with unintended consequences.

Explanation

Policy makers are people who creates ideas and plans especially the ones that are carried out by the businesses and the government. In the United states policy makers are mayors, members of the school boards, cooperation board of directors and the President of united states. Policies are the plans that are followed by the business and the government. These procedures also provide clarity to the reader when dealing with accountability issues or activities that are of critical importance to the company, such as, health and safety, legal liabilities, regulatory requirements or issues that have serious consequences Incentives are things that motivates individuals to perform in actions..They are two types of incentives which are the non-financial and monetary or financial incentives.

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