Companies often find it to be more profitable to use a commission or piece-rate system of compensation rather than a salary system, yet many firms continue to pay their workers salaries
List three reasons why a firm would choose a salary system of compensation.
1 ) Firms may find it difficult to attribute output to a particular worker. 2 ) Firms may be concerned that quality will suffer if does not use a salary system of compensation. 3 ) Workers may dislike the financial risk associated with a commission or a piece-rate compensation system.
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Refer to the table above. Which of the following is likely to be true in this case?
A) Laborland's terms of trade will improve. B) Laborland's economy will go into a recession. C) There will be a surplus in Laborland's financial account. D) There will be a deficit in laborland's financial account.
The best measure of a country's living standard is______
a. real gdp per capita b. average annual investments c. CPI-based inflation rates d. the minimum wage