What Is the Relationship Between Monetary Incentives in Goal Setting

question 215

Multiple Choice

What is the relationship between monetary incentives in goal setting and performance?

• A)Goal setting has led to performance increases without monetary incentives for goal accomplishment.
• B)Goal setting has led to performance decreases with monetary incentives for goal accomplishment.
• C)Goal setting has led to performance decreases when monetary incentives are not provided for goal accomplishment.
• D)Goal setting only leads to performance increases when monetary incentives for goal accomplishment are provided.
• E)It depends on the employees and the incentive.

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Definitions:

Multiplier

An economic factor that quantifies the additional effect on income or output resulting from an injection of spending.

Deflationary Gap

A situation in economics where actual production is lower than the potential output level, often resulting in unemployment and unused productive capacity.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.

Full Employment GDP

The output level produced by the economy when all available resources are efficiently employed, representing potential GDP under full employment.