Many Potential Errors, as Well as Discrimination, Can Occur in the Performance

question 47

Multiple Choice

Many potential errors, as well as discrimination, can occur in the performance appraisal process. Which of the following can such errors lead to?

• A) problematic stock options
• B) problematic merit pay
• C) problematic job evaluations
• D) problematic market pay rates

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Definitions:

Demand Elasticity

A metric for assessing the reaction of a good's demanded quantity to its price adjustments.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.