Question

Rationing is a system under which an agency such as the government decides everyone's "fair" share. Rationing has often been used during wartime. If people receive a set ration regardless of the amount of work completed, how would this affect peoples' incentive to work?

Answer 1

peoples' incentive to work would probably be much better. People would be much more motivated and productive.

Answer 2

The correct answer is: "Peoples' incentives to work will decrease".

If a rationing system is implemented, and people keep on receiving a fixed amount called ration, incentives for working decrease because people know that, regardless of the intensity of effort made, or independently on the quality of the work done, they will still receive the same ration. Effort is not rewarded with an extra amount in their ration, for example.