With Which of the Employee Payment Plans Could an Employee

question 12

Multiple Choice

With which of the employee payment plans could an employee actually earn less than the market rate if the employer considered his or her performance to be unsatisfactory?

• A) earnings-at-risk pay plan
• B) merit pay plan
• C) vested pay plan
• D) incentive pay plan
• E) none of the above because such a scenario is illegal

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Definitions:

Colonization Society

Often refers to organizations like the American Colonization Society, founded in the early 19th century to support the migration of free black people to Africa.

Economic Inefficiency

A situation where resources are not allocated optimally, leading to waste or a failure to achieve potential output or welfare.

Indian Removal

A 19th-century policy of the United States government aimed at relocating Native American tribes from their ancestral lands in the eastern U.S. to territories west of the Mississippi River.