What Type of Pay Plan Is Being Used When Workers

question 73

Multiple Choice

What type of pay plan is being used when workers are paid a sum for each unit they produce?

• A) base pay
• B) competency-based pay
• C) job-based pay
• D) piecework

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Definitions:

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action.

Transfer Payments

Payments made by the government to individuals or groups without receiving any goods or services in return, such as social security or welfare benefits.

Crowd-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment, often due to higher interest rates.

Fiscal Policy Measures

entail government actions using taxation and spending policies to influence macroeconomic conditions, including inflation, employment, and economic growth.