Explain the Economic Idea That "People Respond to Incentives

question 28

Essay

Explain the economic idea that "people respond to incentives."

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Definitions:

Evolutionary

Pertaining to evolution, the process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Yerkes-Dodson

A law suggesting that performance increases with physiological or mental arousal to a certain point, but beyond that, performance decreases.

Affiliation

The sense of connection or association with a group or organization, often resulting in a feeling of belongingness.

Achievement

The act of accomplishing a goal or attaining a high level of performance through effort or skill.