Relative performance evaluation reduces the labor cost borne by the firm by:
A. using the employee's output for setting the compensation.
B. focusing on the near term while setting incentive pay.
C. ratcheting up each year's performance targets.
D. filtering out common shocks from employee incentive pay.
Answer: D
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A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off. C) The company's shareholders will be worse off. D) The worker will be worse off.
When consumers or producers do not bear the full cost of their economic decisions, they tend to produce or consume more than they otherwise would
a. True b. False Indicate whether the statement is true or false
Find the BLS's rate of unemployment from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000
a. 17.5 percent b. 23.3 percent c. 24.6 percent d. 28.8 percent e. 38.3 percent
One objection to supply-side tax cuts is that demand-side changes
A. are smaller than supply-side changes. B. and supply-side changes are about equal. C. are more unpredictable than supply-side changes. D. are larger than supply-side changes.