Which of the Following Forms of Incentive Pay Programs Would

question 182

Multiple Choice

Which of the following forms of incentive pay programs would most likely lead to irreversible increases in employee compensation over the years?

• A) Profit sharing
• B) Lump-sum bonuses
• C) Piece-rate pay systems
• D) Merit-pay systems
• E) Gain sharing

---

Definitions:

Inflation

The tempo at which the comprehensive price tags for goods and services grow, depleting the shopping power.

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.

Low Sacrifice Ratio

A condition indicating that an economy can reduce inflation with a relatively small decrease in economic output or increase in unemployment.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.