A Movement from a Point Inside the Production Possibilities Frontier

question 42

Multiple Choice

A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents

• A) full employment of labour but not capital.
• B) an infinite opportunity cost.
• C) a free lunch.
• D) a tradeoff.
• E) unemployment of labour but not capital.

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Definitions:

Merit Pay

A performance-related pay strategy that offers salary increases based on an individual's job performance, as a way to reward and incentivize high performance.

Performance Bonuses

Additional compensation given to employees based on their achievement of specific performance targets.

Profit Sharing

A company's practice of sharing a portion of its profits with employees, usually in addition to their regular compensation.

Team Awards

Recognitions given to groups of employees for their collective achievements or performance.