Which Pay System Would an Organization Likely Use to Establish

question 5

Multiple Choice

Which pay system would an organization likely use to establish greater job-staffing flexibility?

• A)straight pay
• B)incentive pay
• C)skill-based pay
• D)two-tier pay

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Definitions:

Firm's Willingness

Refers to a company's readiness to engage in activities like selling at certain prices or producing specific quantities.

Willingness to Pay

The maximum amount an individual is prepared to sacrifice to procure a good or service or to avoid something undesirable.

Economic Signals

Indicators or signs used by consumers and producers to guide their actions, such as prices, which indicate when to buy or sell products or resources.

Producers

Entities that create, manufacture, or supply goods and services for the purpose of selling to consumers, businesses, or other producers.