Which of the Following Is a Reason for the Growth

question 49

Multiple Choice

Which of the following is a reason for the growth of benefits as a method of employee compensation?

• A)The tax treatment of benefits programs is less favorable for employees than the tax treatment of wages and salaries.
• B)People prefer a dollar in cash over a dollar's worth of any specific commodity.
• C)The legislation passed during the Great Depression was not conducive to benefits.
• D)Benefits are covered by wage and price controls.
• E)Groups of employees can typically receive a cost advantage over individuals.

---

Definitions:

Revenue

The total amount of money received by a company or government from its activities, such as sales of goods and services, before any expenses are subtracted.

Profit

Profit is the financial return or gain achieved from an investment or business venture after subtracting all expenses and costs.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, leading to market balance.

Competitive Price-Taker

A firm or individual that has no influence over the market price and must accept the prevailing market price for its product or input.