Consider a Simple Economy That Produces Only Chocolates

question 71

Multiple Choice

Consider a simple economy that produces only chocolates. The economy produces 100 bars of chocolates in a year, and a chocolate bar costs $5. If the quantity of money supplied in the economy is $25, then the velocity of money is:

• A) 2.5
• B) 10
• C) 20
• D) 1000

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Definitions:

Rewards

Incentives or benefits provided to individuals or groups as recognition for their achievements, effort, or behavior, aimed at motivating continued performance.

Merit Pay System

A compensation strategy that rewards employees based on their job performance, typically involving evaluations and performance metrics to determine pay increases.

Pay Increases

Adjustments to salary or wages to enhance an employee's compensation.

Performance Contributions

The measurable output or results produced by an employee that contribute to the organization's objectives.