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Author Question: One reason why firms would choose a salary system rather than a commission compensation system is ... (Read 129 times)

student77

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on: Jun 29, 2018
One reason why firms would choose a salary system rather than a commission compensation system is that their employees might become less concerned about the quality of their work.
 
  Indicate whether the statement is true or false

Question 2

If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
 
  What will be an ideal response?
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Heffejeff

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

Real GDP will be higher. The GDP deflator is the ratio of nominal GDP to real GDP, so if the value is less than 100, nominal GDP must be smaller than real GDP.


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