Which of the Following Is True with Regard to the Carrot

question 5

Multiple Choice

Which of the following is true with regard to the carrot and stick approach?

• A) Incentives represent a negative approach to motivating employees.
• B) The carrot approach takes a punitive look at retention.
• C) The stick approach involves offering of some rewards and incentives.
• D) The carrot approach fails when extremely challenging goals are set.
• E) The carrot and stick approach arose from modern management theory.

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Definitions:

Shortage/Surplus

A surplus is the opposite of a shortage, occurring when the supply of a product or service exceeds its demand in a market.

Price Floor

A government- or authority-imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded at a certain price point.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, service, or commodity, usually intended to ensure fair conditions for producers.