Why Is a Performance Management System Superior to a Performance

question 60

Multiple Choice

Why is a performance management system superior to a performance measurement system?

• A) because performance measurement systems are only in their infancy
• B) because measurement automatically leads to problem solution
• C) because performance management systems cost more
• D) because measurement alone has little use without action

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Definitions:

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes and is instead saved.

Closed Economy

An economic system that does not engage in international trade but relies entirely on its own resources and production.

Taxes Minus Transfers

The net amount individuals pay to the government after accounting for government transfers received, such as social security and unemployment benefits.

Loanable Funds

The funds available in the financial markets for borrowing, influenced by savings, the policy rate, and other factors.