A Broad Band

question 24

Multiple Choice

A broad band:

• A)is a combination of pay grades that reduces the number of levels in a pay structure.
• B)refers to the distance between the minimum and maximum pay rate in a pay grade.
• C)is the salary range attached to white-collar jobs.
• D)reduces flexibility in assigning merit increases.

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, crucial in evaluating the true cost of any economic choice.

Law of Increasing Costs

An economic principle stating that as the production of one good increases, the opportunity cost of producing an additional unit of this good also increases, assuming all resources are fully utilized.

Capacity Utilization Rate

A measure of how efficiently a firm or economy is using its productive capacity, often expressed as a percentage of total potential output.

Full Capacity

The maximum level of output that a company can produce and supply under normal conditions.