Which of the Following Is Not a Characteristic of Effective

question 31

Multiple Choice

Which of the following is not a characteristic of effective reward and incentive systems?

• A) Performance measures are clear and highly visible.
• B) The structure is fixed to assure employees of consistency.
• C) The compensation system is perceived as fair and equitable.
• D) Objectives are well understood, and broadly accepted.

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Definitions:

Sellers' Willingness

Refers to the inclination or readiness of sellers in a market to offer goods or services for sale at various prices.

Total Surplus

The total net gains for society represented by the combined amount of consumer surplus and producer surplus in a market.

Producer Surplus

This is an economic measure of the difference between the amount producers are willing to supply a good for and the amount they actually receive.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a product and the actual market price they pay.