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Incentives Need to Be Clearly Separated from Base Pay to Avoid

question 44

Multiple Choice

Incentives need to be clearly separated from base pay to avoid creating the impression that incentives are a(n) ______.


Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

National Income

Total income earned by resource suppliers for their contributions to gross domestic product plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietors’ income, and such taxes.

U.S. Farm Products

Agricultural commodities produced in the United States, including grains, fruits, vegetables, meat, and dairy products.

Economic Growth

(1) An outward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology; (2) an increase of real output (gross domestic product) or real output per capita.

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