The Main Difference Between a Reward System and a Compensation

question 9

True/False

The main difference between a reward system and a compensation system is that a reward system rewards only good performance while a compensation system provides pay to all employees.

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Definitions:

Deadweight Losses

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Quotas

Predetermined limits set on the quantity of goods that can be produced, imported, or exported.

Market Outcomes

The results of all the buying and selling activities in a particular market.

Price Floor

A government-imposed minimum price for a good or service, aimed at preventing prices from falling too low.