In 2015, Farmer Lactose's Dairy Farm Lost Money

question 198

Multiple Choice

In 2015, Farmer Lactose's dairy farm lost money. Under the Agricultural Act of 2014 dairy margin protection program, which of the following events would have triggered payments to Farmer Lactose?

• A)only the price of milk falling too low
• B)only the price of feed rising too high
• C)either the price of milk falling too low or the price of feed rising too high
• D)if the collective revenue of all dairy farmers in the county fell too low

Identify the factors influencing wage levels and pay structures, including market conditions and profitability.

Recognize the importance of strategic compensation policies in achieving organizational goals.

Understand the role of consumer price index (CPI) and real wages in compensation management.

Grasp the basics of expectancy theory and its implications for motivation and compensation.

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Definitions:

FICA Tax

A federal payroll tax that funds Social Security and Medicare, evenly split between employers and employees.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Federal Income Tax

A tax by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Net Pay

The amount of money an employee receives after all deductions, such as taxes and retirement contributions, are subtracted from their gross pay.