Why Do Children Tend Not to Understand the Value of Money

question 105

Multiple Choice

Why do children tend not to understand the value of money until they see all of the wonderful things that it can buy?

• A) Because money is a secondary reinforcer, and only primary reinforcers provide gratification.
• B) Because money is a secondary reinforcer, whose value becomes satisfying or pleasurable through experience .
• C) Because children have learned that money must be earned, and therefore receiving it does not feel like a reward or reinforcer, but rather like a payment.
• D) Because children do not have the cognitive skills necessary to make the connection between an abstract concept like money and a concrete concept like a toy or candy.

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Definitions:

Entrepreneurial Behaviour

Involves actions and attitudes that individuals exhibit to undertake new ventures, including innovation, risk-taking, and proactiveness.

Large Organisations

Entities that operate on a vast scale, often with extensive human and capital resources, complex structures, and wide geographical reach.

Contingency Factors

Variables or conditions that influence the effectiveness of management strategies and affect organizational performance.

Organisational Design

The process of shaping an organization's structure, roles, and processes to effectively achieve its goals and adapt to environmental changes.