Final answer:
A set amount of money paid per pay period regardless of hours worked is known as a salary, which may impact work incentives.
Step-by-step explanation:
Payment of a set amount of money per pay period, regardless of the number of hours worked, is referred to as a salary. This contrasts with wage payments, where the amount of money earned is directly tied to the number of hours worked. Salaries often imply a fixed compensation structure, which can affect the incentive to work. While a salary might increase the payment received for work, making it popular among economists and the general public, it could also potentially reduce the incentive to work more hours, as some individuals may choose to work fewer hours yet still receive the same income.