Which of the Following Is an Advantage of a Lump-Sum

question 51

Multiple Choice

Which of the following is an advantage of a lump-sum increase (LSI) plan?

• A)The plan involves less administrative work.
• B)Employees' awareness of what their performance merited is heightened.
• C)Unions support this concept of merit bonuses.
• D)An LSI plan increases the compounding effect of succeeding raises.

---

Definitions:

Consumption

denotes the act of using goods and services for personal or collective needs, often a major component of GDP.

Consumption Function

It is an economic formula representing the relationship between total consumption and gross national income, suggesting that consumption patterns are directly related to income levels.

Disposable Income

Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned.