If Initially an Individuals' Compensation Is Less Than Their Productivity

question 42

Multiple Choice

If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

• A)will free-ride late in their career.
• B)has an incentive to leave the firm.
• C)has an incentive to stay with the firm.
• D)none of these choices.

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Definitions:

Fractions

A mathematical expression representing the division of one quantity by another, typically written with a numerator above a denominator.

Lowest Terms

A fraction reduced to the lowest possible terms while retaining its original value.

Tort

A civil wrong or infringement of a right leading to legal liability, distinct from breach of contract.

Breach of Contract

The failure to perform any term of a contract, written or verbal, without a legitimate legal excuse.