One Requirement of an Incentive Plan Is That It Be

question 11

Multiple Choice

One requirement of an incentive plan is that it be:

• A) based on performance.
• B) based on seniority.
• C) limited to employees in manufacturing.
• D) limited to nonmonetary redemption options.

---

Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choice.

Post Hoc, Ergo Propter Hoc

A logical fallacy that suggests that because one event followed another, the first event caused the second.

Inductive Reasoning

the process of making generalizations based on specific observations or instances.

Normative Economics

The branch of economics that focuses on what ought to be or what should happen, emphasizing value judgments about economic policies.