Efficiency Wages

question 309

Multiple Choice

Efficiency wages

• A)increase productivity and reduce unemployment.
• B)increase productivity but increase unemployment.
• C)decrease productivity but reduce unemployment.
• D)decrease productivity and increase unemployment.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in a specific market over a given period.

Piece-Rate Reward Plan

A compensation system where employees are paid based on the amount of work they complete, encouraging higher productivity.

Sales Commission

A reward or payment made to a salesperson, typically calculated as a percentage of the sales they have generated.

Incentive Systems

Arrangements used by organizations to motivate and reward employees for achieving specific performance targets.