When Competition Is Present and Property Rights Protected and Enforced

question 120

Multiple Choice

When competition is present and property rights protected and enforced, market prices will

• A) discourage profit-seeking business firms from producing efficiently.
• B) direct entrepreneurs toward production of goods that are inferior in quality.
• C) encourage self-interested individuals to develop skills that are expected to be valuable in the future.
• D) always decrease.

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Definitions:

Broadbanding

A method of salary structure that consolidates a large number of pay grades into fewer, wider bands.

Hybrid Wage System

A compensation strategy that combines elements of both hourly wages and salary, potentially including performance bonuses or commissions.

Administrative Employees

Employees who are responsible for office functions and tasks; they typically engage in non-manual work related to the general business operations of an organization.

Merit Increases

Salary raises awarded to employees based on their performance and contribution to the organization.