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Punishment Stops Unwanted Behaviours Most Effectively When It Is Mild

question 153

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Punishment stops unwanted behaviours most effectively when it is mild and accompanied by presents or rewards.


Definitions:

Economic Analysis

The systematic approach to determining the optimal use of scarce resources, involving comparison of costs and benefits.

Land Rent

The payment made for the use of land or real estate.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Usury Laws

Legislation enacted to place a limit on the interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

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