Which One of the Following Fringe Benefits Allows for Discrimination

question 86

Multiple Choice

Which one of the following fringe benefits allows for discrimination between highly compensated employees and other employees to be present?

• A)no-additional cost
• B)qualified employee discounts
• C)recreation and athletic facilities
• D)working condition

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Definitions:

Wage Increase

An upsurge in the rate of pay employees receive for their labor, typically expressed as a percentage increase over current wages.

Substitution Effect

The change in consumption patterns due to a price change, leading consumers to substitute one product for another.

Wage Decrease

A reduction in the hourly, daily, or monthly compensation that workers receive for their labor.

Utility Maximizing

The principle or practice of choosing the combination of goods and services that provides the highest level of satisfaction or utility to an individual.