Which of the Following Statements Is TRUE of Lump-Sum Payments

question 25

Multiple Choice

Which of the following statements is TRUE of lump-sum payments?

• A) It is a pay incentive system in which employees receive a share of the employer's profits on a monthly basis as their payment.
• B) It is a wage system that pays newly hired workers less than current employees performing the same or similar jobs.
• C) It is a method of providing a general wage increase as a onetime payment rather than adding the increase to the hourly or annual salary of the employee.
• D) It is a method of providing a general wage increase in which a lower wage adjustment is provided in the first year with higher increases in later years.

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Definitions:

Oligopolist

A firm or individual that is part of a market structure in which a few companies control the majority of market sales.

Collude

When two or more firms work together to control a market, set prices, or limit production, often in ways that defy competitive principles or regulations.

Competitive Market

A market with many buyers and sellers trading identical products so that each buyer and seller is a price taker.

Strategic Interactions

The analysis of decision making in situations where two or more players (such as individuals or firms) must consider the potential reactions of others to their own actions.