Even Though Commissions Are Often Based on a Percentage of Dollar

question 235

Multiple Choice

Even though commissions are often based on a percentage of dollar sales, they can be based on _____________ instead.

• A) number of new accounts
• B) customer satisfaction ratings
• C) customer service problems resolved in some time period
• D) All of these alternatives are true

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Definitions:

Income Effect

The change in the quantity of a good consumed that results from the change in a consumer’s purchasing power due to the change in the price of the good.

Substitution Effect

The adjustment in consumer behavior because of shifts in the prices of goods relative to each other, causing consumers to choose different goods over previously preferred ones.

Normal Good

A good whose demand increases as consumer income increases, demonstrating how economic well-being influences consumer choices.

Child Tax Credit

A tax benefit offered to families with children, providing a reduction in their tax liability per child.