Which of the Following Is Not a Characteristic of Performance

question 23

Multiple Choice

Which of the following is not a characteristic of performance based pay?

• A)The slope of the relationship between pay and performance for an employee provides incentives for effort,not the level of pay
• B)Employees will always prefer performance based pay thus aligning principal/agent objectives
• C)The overall value maximizing effort level for an employee occurs when personal marginal benefit equals personal marginal cost
• D)Performance based pay can resolve hidden information problems
• E)Pay contracts approaching 100% commission and negative salaries can occur

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Definitions:

Forebrain

The brain’s largest division and its most forward part.

Largest Division

The largest segment or section within a particular context or system, though without further specification, this can refer to numerous different things.

Brain

The brain is the organ located in the head of an organism that coordinates its behavior and mental processes, including thought, emotion, and memory.

Association Cortex

Sometimes called association areas, the region of the cerebral cortex that is the site of the highest intellectual functions, such as thinking and problem solving.