Statement 1: "Economists believe that all types of compensation have some form of incentive pay component, however, when they talk about incentive pay they usually are referring to compensation with a very direct and obvious reward for better employee performance."

Statement 2: "Incentive pay is usually cheaper than paying workers by salary."

Group of answer choices:

Statement 1 is true, but 2 is false

Statement 2 is true, and 1 is false

Both statements are false.

Both statements are true