Final answer:
Extrinsic motivation refers to actions driven by external rewards or punishments, in contrast to intrinsic motivation, which is driven by personal satisfaction. The introduction of extrinsic rewards can lead to the overjustification effect, diminishing intrinsic interest in an activity.
Step-by-step explanation:
Motivations based on external incentives such as rewards and punishments are understood as extrinsic motivation. This contrasts with intrinsic motivation, where behaviors are performed due to the sense of personal satisfaction that they bring.
Extrinsic motivation involves performing tasks to receive something from others, such as money or praise. However the presence of external rewards can negatively impact intrinsic motivation especially if they are expected. This is known as the overjustification effect where intrinsic interest in an activity can decrease when extrinsic rewards are introduced, leading to a potential dependence on external incentives for continued engagement in the activity.