Erica teaches fourth grade at a local elementary school. She significantly increased her salary by earning a master's degree in education. This is an example of   

A. pay for performance.
B. pay for knowledge.
C. a bonus.
D. profit sharing.
E. gainsharing.


B. pay for knowledge.

Also known as skill-based pay, pay for knowledge ties employee pay to the number of job-relevant skills or academic degrees they earn. The teaching profession is an example; elementary and secondary teachers are encouraged to increase their salaries by earning further college credit.

Business

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