An incentive is a factor or reward that motivates individuals to take a specific action or behave in a certain way. It can be financial, such as bonuses or salary increases, or non-financial, like recognition or praise. Incentives are commonly used in various settings, including workplaces, schools, and marketing, to encourage desired behaviors or outcomes. Incentives can be classified into two main types: intrinsic and extrinsic. Intrinsic incentives come from within an individual, such as personal satisfaction or a sense of achievement. In contrast, extrinsic incentives are external rewards, like money or gifts, that influence behavior. Both types play a crucial role in shaping decisions and actions.