Final answer:
It is false that extrinsic rewards must be tangible to motivate; both tangible and intangible rewards can motivate people, but they affect intrinsic motivation differently. The expectation and presence of rewards can reduce intrinsic motivation, known as the overjustification effect, yet some extrinsic rewards like praise may enhance it. Option B is correct.
Step-by-step explanation:
The statement that extrinsic rewards must be tangible/physical things like money to effectively motivate people is false. Research indicates that both tangible rewards (e.g., money) and intangible rewards (e.g., praise) can have an impact on motivation, but the effects differ.
Tangible rewards tend to have more negative effects on intrinsic motivation than intangible rewards like praise. An important aspect is the person's expectation of a reward; an expected extrinsic reward can reduce intrinsic motivation, whereas an unexpected reward might not have this effect.
An example of how extrinsic rewards can impact intrinsic motivation is the overjustification effect, where intrinsic motivation diminishes when extrinsic motivation is added. For instance, when someone like Odessa who loves baking starts to get paid for it, her motivation to bake outside of work may decrease.
However, other studies have suggested that certain extrinsic reinforcements, such as verbal praise, could potentially increase intrinsic motivation, highlighting the complexity of human motivation.