One of the Disadvantages of a Merit Pay Is That

question 51

True/False

One of the disadvantages of a merit pay is that the criteria for determining merit are often nebulous since organizations do not clearly mention the conditions for earning the pay.

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

MPC

Marginal Propensity to Consume, the fraction of additional income that is spent on consumption.

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it, often associated with fiscal and monetary policy impacts.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that gets spent on consumption.