Generally, Organizations Have Increased Their Use of Variable Pay Relative

question 18

True/False

Generally, organizations have increased their use of variable pay relative to traditional base pay increases.

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Definitions:

Comparative Advantage

A principle in international trade that suggests a country should export goods in which it is more efficient and import those in which it is less efficient, compared to other countries.

Opportunity Cost

The act of selecting one alternative leads to the loss of possible gains that could have been obtained from other options.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.

Absolute Advantage

The ability of a country or entity to produce a good more efficiently (using fewer resources) than another country or entity.