Which of the following regarding "deferred payments" is NOT correct?
A) Workers' productivities rise with seniority.
B) Workers' wages normally rise with seniority.
C) Deferred payment reduces monitoring costs.
D) Deferred payment reduces turnover.

Question

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Deferred payments refer to a compensation structure where part of an employee's salary or benefits is paid out at a later date rather than immediately. This concept is often used to incentivize long-term employment and loyalty to a company. The statement that workers' productivities rise with seniority (A) is not inherently related to the concept of deferred payments. While it's true that in some cases, workers' productivity may increase with experience and seniority, this is a general statement about workforce dynamics and not a direct consequence or characteristic of deferred payment systems. Deferred payments are more directly related to reducing turnover (D) and monitoring costs (C), as they encourage employees to stay with a company longer and reduce the need for close supervision by aligning employee interests with those of the employer. Workers' wages normally rising with seniority (B) can be a result of many factors, including deferred payments, but is not incorrect in the context of discussing deferred payments.

Which of the Following Regarding "Deferred Payments" Is NOT Correct