The rate at which an employer provides an incentive for an employee to perform (to increase effort)is the:
A)informativeness quotient.
B)incentive coefficient.
C)risk-sharing premium.
D)efficient bargaining solution.

Question

Quizplus · Accepted Answer

The rate at which an employer provides an incentive for an employee to perform is the incentive coefficient. This measures the sensitivity of the employee's utility to the level of effort, which means how much more the employee is willing to work for an increase in incentivization.

The Rate at Which an Employer Provides an Incentive for an Employee