Which of the Following Is an Advantage of the Merit

question 73

Multiple Choice

Which of the following is an advantage of the merit pay incentive system?

• A) It makes the reward more valuable by relating it to economic conditions.
• B) It promotes group performance instead of promoting individual behavior.
• C) It provides merit increases to employees solely on the basis of performance.
• D) It is the most economical incentive system for the employers.
• E) It provides a direct link between the work done by the employee and the amount earned.

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Definitions:

Utility

A measure of the satisfaction or happiness that a person derives from consuming goods and services.

Marginal Rate

Refers to the rate at which one quantity changes with respect to a change in another, commonly used in economics to describe the marginal rate of substitution or marginal rate of transformation.

Indifference Map

A collection of indifference curves that graphically represent a consumer's preferences across different combinations of two goods.

Space

The infinite extension of the three-dimensional region in which all matter exists.