When an individual only considers interests in terms of rewards and punishments, he or she is employing Level (1/2) moral reasoning.

The statement you've provided refers to a specific stage of moral development as outlined by Lawrence Kohlberg's stages of moral development. In this framework, Level 1 moral reasoning corresponds to the pre-conventional level, which is typically characterized by a focus on direct consequences to oneself.

Key Points to Understand:

1. Pre-Conventional Level: This is the first level of moral development and consists of two stages:

   • Stage 1: Obedience and Punishment Orientation, where individuals make moral decisions based purely on avoiding punishment.
   • Stage 2: Individualism and Exchange, which leads to the understanding that different individuals have their own interests and that rewarding exchanges can occur.

2. Emphasis on Rewards and Punishments: At this level of reasoning, decisions are made primarily based on what will give the individual the most benefit or avoid the most harm, indicating a self-centered approach to morality.

3. Age Group: Typically, moral reasoning at this level is associated with children and a minority of adults who may not have progressed to higher levels of reasoning.

In summary, when an individual evaluates situations based purely on personal rewards and punishments without considering broader societal implications or principles, they are indeed demonstrating Level 1 moral reasoning within Kohlberg's model.