Asked by
Kerone Creary
on Dec 17, 2024
Verified
Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $9. Which of the following compensation schemes could the graph be illustrating?
A) An efficiency wage
B) Discrimination
C) A compensating differential
D) The superstar phenomenon
Compensation Scheme
A plan or system used to determine how to compensate or reward employees for their work, including wages, benefits, bonuses, and other forms of payment.
Efficiency Wage
A salary set by employers above the market equilibrium to increase productivity, attract high-quality employees, or reduce turnover.
- Identify the function of compensating differentials within the employment market.
Verified Answer
RT
Learning Objectives
- Identify the function of compensating differentials within the employment market.