The Change in Consumption of a Good Resulting from the Implicit

question 7

Multiple Choice

The change in consumption of a good resulting from the implicit change in income because of a price change is called the _______ effect of a price change.

• A) substitution
• B) demand
• C) price
• D) income

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Definitions:

Executive Compensation

Refers to the total package of benefits, including salary, bonuses, stock options, and other financial rewards, that is provided to executives of a company.

Base Salary

The fixed amount of money a worker receives from their employer before any extra compensations such as bonuses.

Long-term Incentive

Compensation awarded to employees in the form of stock, options, or other performance-linked rewards that vest over a period longer than one year to encourage long-term commitment.

Long-term Incentives

Reward systems designed to improve employees' long-term performance by providing benefits such as stock options, restricted stock, and performance plans.