Which of the Following Is an Advantage of the Merit

question 73

Multiple Choice

Which of the following is an advantage of the merit pay incentive system?

• A) It makes the reward more valuable by relating it to economic conditions.
• B) It promotes group performance instead of promoting individual behavior.
• C) It provides merit increases to employees solely on the basis of performance.
• D) It is the most economical incentive system for the employers.
• E) It provides a direct link between the work done by the employee and the amount earned.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.

Net Social Gain

The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.

Innovation

The process of creating new products, services, processes, or technologies that deliver value to society or the market.