Incentives are rewards or benefits that motivate people to take certain actions or make specific choices. For example, a company might offer bonuses to employees who meet their sales targets, encouraging them to work harder. Similarly, a school might provide students with extra credit for completing assignments on time, promoting good study habits. Incentives can be both positive and negative. Positive incentives, like discounts or prizes, encourage desired behavior, while negative incentives, such as fines or penalties, discourage unwanted actions. Understanding how incentives work can help individuals and organizations create effective strategies to achieve their goals.