Lump Sum Merit Increases Can Be a More Dramatic Motivator

question 28

True/False

Lump sum merit increases can be a more dramatic motivator than traditional merit pay because the amount seems greater when received as a lump sum.

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Definitions:

Supply

The total amount of a product or service that is available to consumers, which can vary based on price, production costs, and other factors.

Elastic

A term used in economics to describe the sensitivity of the demand or supply of a good or service to changes in its price.

Perfectly Inelastic

A situation in which the quantity demanded or supplied does not change regardless of any change in price.

Fixed Number

A specific, unchanging quantity that does not vary under different conditions or over time.