A day care program frequently has a few parents picking up their children late. In an attempt to curb this, the daycare decides to charge a fine to parents who are more than 10 minutes late. However, after the fine was implemented, the number of late parents increased. Which of these conclusions can be true?

1)The fine eliminated the non-financial incentives to be on time

2)The fine was not high enough to discourage being late

3)The fine was perceived as a price

4) All of the above

The correct answer is number (4): All of the above.

Explanation:

The fine eliminated the non-financial incentives to be on time and the fine was perceived as a price because parents possibly felt guilty for picking up their children late but no punishments were given before the penalty. Since it was introduced, parents may consider it a fair trade for being late and are willing to pay the penalty.

Besides, it is possible that the fine was not high enough to make parents change their behavior because instead of decreasing the number of parents picking up their children late, the penalty increased it.

answer; limited pay life;