Provide Two Impacts External Rewards May Have on Performance

question 38

Essay

Provide two impacts external rewards may have on performance. Provide an example to demonstrate each possibility.

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Definitions:

Medium of Exchange

An item that is widely accepted in transactions for goods and services because it simplifies trade and eliminates the need for a coincidental wants barter system.

Capital Good

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Store of Value

Store of value is a function of money that allows it to retain purchasing power over time, enabling people to save it and use it in the future.

Fundamental Questions

Basic economic queries that address what to produce, how to produce, and for whom to produce, guiding resource allocation.