Ybanez, Ron Skibsel B.

BSBA MM-1C

Asynchronous Activity #1
A. Describe an incentive your parents offered to you in an effort to influence your
behavior.

 Over the years, I have noticed that my parents reward me with a gift (phone,
laptop, ipad) whenever I achieve something in school and in my academics; thus,
compelling me to be diligent in my studies.

B. Questions for Review

1. Give three examples of important trade-offs that you face in your life.
 I was faced with deciding to go to sleep or studying all night for the
upcoming exams the next day. I chose to study all night instead of
sleeping which gave me good grades.
 I was faced with contemplating in deciding to go hang out with friends
or going home straight after class. I went home since our house was
still 20 kilometers away from our school. Fortunately, I did not get stuck
at the traffic jam, so I got home early.
 I was faced with choosing to be absent and go on a vacation with my
relatives for 3 school days or attending my classes. I immediately
declined the invitation and went to school during those days. I did not
regret my decision since we had a lot of activities which could have
affected my grades.
2. Water is necessary for life. Is the marginal benefit of a glass of water large or
small?
 The marginal benefit obtained from consuming an additional unit of
a glass of water is small since water is abundant.
3. Why should policymakers think about incentives?
 It is necessary for policymakers to think about incentives so they can
understand how people will respond to the policies implemented. Many
policies change the costs or benefits that people face, and as a result,
alter their behavior; thus, it plays a great role in order for the
policymakers to avoid ending up facing unintended consequences, just
as what the seatbelt example in the textbook implicated.
C. You are trying to decide whether to take a vacation. Most of the costs of the
vacation (airfare, hotel, and forgone wages) are measured in dollars, but the
benefits of the vacation are psychological. How can you compare the benefits to
the costs?
 It all really boils down to the preference and the capacity of a person.
Some can afford things most people find too costly and will do what it
takes to get the satisfaction they want regardless of the cost, so it
might be worth it for them. Some do not feel the need to spend so
much for them to get satisfied given their limited money. I’m the latter
so I probably won’t find it too satisfying due to the cost it needs to go
on a vacation. Hence, the benefit is lesser than the cost.

D. 10 inventors that regret their creations:

1. J. Robert Oppenheimer — The atomic bomb.
2. Mikhail Kalashnikov — AK-47.
3. Tim Berners Lee — the double slash.
4. Ethan Zuckerman — the pop-up advert.
5. Dong Nguyen — Flappy Bird.
6. Bob Propst — the office cubicle.
7. Vincent Connare — Comic Sans
8. Tom Karen — Raleigh Chopper.
9. Kamran Loghman — Pepper spray.
10. John Sylvan — Coffee capsules