ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The may change the cost of an item
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They create opportunity cost
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The may change your decision
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They require the use of the factors of production
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Detailed explanation-1: -When incentive values are high and the uncertainty of receiving them is rather low, an imbalance between the highly activated reward region and low activated control regions may lead to more impulsive and risky decision-making in adolescence.
Detailed explanation-2: -When it comes to employees, rewards and incentives in the workplace have benefits for both employees and employers. When recognising employees for their performance and productivity, it can improve morale, job satisfaction and motivation to support organisations in achieving their aims.
Detailed explanation-3: -Monetary incentives have two kinds of effects: the standard direct price effect, which makes the incentivized behavior more attractive, and an indirect psychological effect. In some cases, the psychological effect works in an opposite direction to the price effect and can crowd out the incentivized behavior.
Detailed explanation-4: -Offering people a reward/incentive helps them to align their actions with such preferences. In this way, incentives enhance their autonomy to act according to their true underlying preferences.