Fringe benefits will tend to be a greater proportion of total compensation,the:
A)more income elastic are fringe benefits
B)more they increase worker turnover
C)lower the employer's share of the Social Security tax
D)less there are economies of scale in purchasing fringe benefits

Question

Quizplus · Accepted Answer

Fringe benefits will be a greater proportion of total compensation if they are more income elastic, meaning that as income increases, the demand for fringe benefits increases at a higher rate.

Fringe Benefits Will Tend to Be a Greater Proportion of Total