Podcast
Questions and Answers
What happens if an employer pays above the maximum pay level?
What happens if an employer pays above the maximum pay level?
- The employer earns more profit
- The government pays the difference
- The employer must pass on the higher pay level to customers through price increases (correct)
- The employees work for less hours
What is an alternative to passing on the higher pay level to customers through price increases?
What is an alternative to passing on the higher pay level to customers through price increases?
- Decreasing the quality of products
- Firing employees
- Maintaining prices and allocating a greater share of total revenues to cover labor costs (correct)
- Increasing the number of employees
Why might an employer choose to pass on the higher pay level to customers through price increases?
Why might an employer choose to pass on the higher pay level to customers through price increases?
- To reduce employee salaries
- To maintain the same profit margin (correct)
- To increase the quality of products
- To increase employee working hours
What is the consequence of holding prices fixed when an employer pays above the maximum?
What is the consequence of holding prices fixed when an employer pays above the maximum?
What is the primary concern for an employer who pays above the maximum pay level?
What is the primary concern for an employer who pays above the maximum pay level?
What is regulated in addition to pay-level?
What is regulated in addition to pay-level?
What aspect of employee compensation is regulated?
What aspect of employee compensation is regulated?
What is an example of a regulated pay form?
What is an example of a regulated pay form?
What is not mentioned as a regulated aspect of employee compensation?
What is not mentioned as a regulated aspect of employee compensation?
How many aspects of employee compensation are regulated?
How many aspects of employee compensation are regulated?
What motivates employees to choose a particular organization?
What motivates employees to choose a particular organization?
What is the outcome of higher pay satisfaction in an organization?
What is the outcome of higher pay satisfaction in an organization?
What is the relevant market in an organization?
What is the relevant market in an organization?
Why do employees prefer organizations with higher pay?
Why do employees prefer organizations with higher pay?
What is the relationship between organization strategy and employee performance?
What is the relationship between organization strategy and employee performance?
What is a characteristic of markets with low competition?
What is a characteristic of markets with low competition?
What do businesses in markets with low competition typically experience?
What do businesses in markets with low competition typically experience?
What is a consequence of low competition in a market?
What is a consequence of low competition in a market?
What is a benefit of operating in a market with low competition?
What is a benefit of operating in a market with low competition?
What is a characteristic of businesses in markets with low competition?
What is a characteristic of businesses in markets with low competition?
What is the purpose of compensating differentials?
What is the purpose of compensating differentials?
What is the goal of efficiency wages?
What is the goal of efficiency wages?
What is signaling in the context of job offers?
What is signaling in the context of job offers?
Which of the following is an example of compensating differentials?
Which of the following is an example of compensating differentials?
What is the primary difference between efficiency wages and compensating differentials?
What is the primary difference between efficiency wages and compensating differentials?
