Multiple choice

Question 1

One solution to the problem of pay compression is to institute:

A. equity adjustments.

B. merit-pay increases.

C. compensation concentration.

D. salary caps.

Question 2

The fact that past merit payments are incorporated into an individual's base salary allowing formerly productive employees to slack off is known as:

A. merit allowance.

B. a disincentive.

C. a union contract.

D. the annuity problem.

Question 3

An employer awarding an employee's exceptional performance with a small, one-time bonus shortly after the noteworthy actions is a __________ bonus.

A. lump-sum

B. spot

C. surprise

D. competency-based

Question 4

Which law offers full coverage for retirees, dependent survivors, and disabled persons insured by 40 quarters of payroll taxes on their past earnings or earnings of heads of households?

A. Federal Unemployment Tax Act

B. Social Security Act

C. Workers' compensation

D. Employee Retirement Income Security Act