In New York City, Mayor Michael Bloomberg has recently recommend that the city, with the help of private donors, make cash pa
yments to poor and underprivileged parents who can certify that their children are attending school on a regular basis. The payments would start after third grade and go through high school, rising each year as dropout rates get higher and a child's forgone earning potential is higher. What economic concept does this policy represent?
An incentive is something that promotes motivation to a people to behave a certain way.
The preferences can be their needs, wants or desires.
In this case, the New York county mayor with the help of private donors are making cash payouts to poor and under privileged who can certify that their children are going to school.
The cash payouts is a motivation since the poor parents do not have money.
They are motivated to take their children to school something the city mayor wants.
