Explicit Costs Are

question 163

Multiple Choice

Explicit costs are

• A) the opportunity cost of the means of production.
• B) always paid out of pocket.
• C) always greater than implicit costs.
• D) never greater than implicit costs.
• E) what a business sacrifices in order to produce a good.

---

Definitions:

Overjustification Effect

The tendency for salient rewards or threats to lead people to attribute the reason, or justification, for engaging in an activity to an external factor, which thereby undermines their intrinsic motivation for and enjoyment of the activity.

Intrinsic Enjoyment

The pleasure and satisfaction derived from engaging in an activity for its own sake, without any external rewards or pressures.

Extrinsic Reward

A reward that comes from an external source rather than from the intrinsic pleasure of the activity itself.

Overjustification Effect

A psychological effect whereby externally provided rewards can reduce a person's intrinsic motivation to perform a task, because the person comes to attribute their actions to the external rewards rather than their own interest in the task.