A Compensation Structure That Generates Much Higher Pay Rates for the Top

question 50

Multiple Choice

A compensation structure that generates much higher pay rates for the top performers, while those whose productivity is only a little lower receive substantially less compensation, is called

• A) tournament pay.
• B) competing differentials.
• C) dueling executives.
• D) winner take all.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where supply and demand curves intersect, resulting in market equilibrium.

Demand Schedules

A table that shows the quantity of a good that consumers are willing and able to purchase at various prices, holding all else constant.

Demand Curve

A graphical representation of the quantity of a good that consumers are willing and able to buy at different prices.

Price Change

A variation in the cost of a good or service over time.