Which of These Performance-Based Rewards Tends to Create the Strongest

question 133

Multiple Choice

Which of these performance-based rewards tends to create the strongest psychological connection between the individual employee's work effort and the reward received?

• A)Profit sharing plan
• B)Gainsharing plan
• C)Employee stock ownership plan
• D)Employee stock option plan
• E)None of these rewards offer any psychological connection between the individual employee's work effort and the reward received.

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Definitions:

Market Supply

The total quantity of a good or service available for purchase at any given price level in a given market.

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.

Total Welfare

The total economic well-being that a society achieves, including both consumer surplus and producer surplus.

Consumer Surplus

The contrast between what consumers intend to spend on a good or service and the actual amount they part with.