Suppose Edland Can Produce Either 30 Units of Good a or 30

question 76

Multiple Choice

Suppose Edland can produce either 30 units of good A or 30 units of good Z,and Georgeland can produce either 150 units of good A or 200 units of good Z.For them both to benefit from trade,how much will each unit of Z exchange for?

• A)more than 1 unit of A
• B)between 0.75 of a unit and 1 unit of A
• C)between 0.1 of a unit and 0.75 of a unit of A
• D)0 units of A since only if the good Z is free will there be mutual benefit.

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Definitions:

Gainsharing

A performance-based compensation strategy where employees are rewarded for contributing to improved operational efficiency, leading to cost savings which are shared with employees.

Compa-Ratio

A metric that compares an employee's salary to the midpoint of a salary range for their position, used to gauge how competitively they are being compensated.

Merit Pay Programs

Compensation programs where employees receive bonuses or pay increases based on their performance evaluations.

Straight Commission Plans

Compensation plans where an employee's earnings are directly tied to the sales or revenue they generate, without any base salary.