Which of the Following Is Not a Characteristic of Performance

question 23

Multiple Choice

Which of the following is not a characteristic of performance based pay?

• A)The slope of the relationship between pay and performance for an employee provides incentives for effort,not the level of pay
• B)Employees will always prefer performance based pay thus aligning principal/agent objectives
• C)The overall value maximizing effort level for an employee occurs when personal marginal benefit equals personal marginal cost
• D)Performance based pay can resolve hidden information problems
• E)Pay contracts approaching 100% commission and negative salaries can occur

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Definitions:

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, heart failure, and others.

Thromboplastin

A plasma protein that plays a key role in the blood clotting process.

Clotting

The process by which blood changes from a liquid to a solid state, forming a clot to prevent excessive bleeding when vessels are injured.

Capillary Bed

A network of small blood vessels known as capillaries, which facilitate the exchange of oxygen, nutrients, and waste materials between the blood and tissues.