Which of the Following Statements About Commission Systems of Compensation

question 117

Multiple Choice

Which of the following statements about commission systems of compensation is false?

• A)They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort.
• B)During sluggish periods, an employer's payroll expenses will decline along with sales.
• C)If workers are paid on the basis of the number of units produced, they may become less concerned about quality.
• D)The lack of income stability will induce the more productive workers to leave in search of more secure employment.

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Definitions:

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution and its negative effects on the environment.

Consumer Tastes

Preferences or desires of consumers regarding certain products or services, which can influence buying behavior and market trends.

Externalities

The cost or benefit that affects a party who did not choose to incur that cost or benefit, affecting third parties outside the transaction.

Market for Product X

The demand and supply conditions, participants, and interactions specific to a particular product, designated as "Product X."