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Exceptional Enterprises Launched a Program to Evaluate the Relative Levels

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Exceptional Enterprises launched a program to evaluate the relative levels of skills, education, and training needed to perform various jobs. Based on the results of this evaluation, the firm intends to adjust pay scales so that jobs requiring similar levels of skills, abilities, and education will receive similar pay. Exceptional Enterprises' program is an attempt to deal with the issue of:


Definitions:

Price Elasticity

A gauge for the sensitivity of the amount of a good that is demanded or offered to alterations in its pricing.

Quantity Supplied

The amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period.

Elasticity of Labor Supply

A measure of the response of labor supplied to a change in the price of labor.

Wages

Payments made to employees by employers, typically based on the number of hours worked or a fixed amount for a certain job.

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