Companies Place a Considerable Amount of Attention on Compensation Plans

question 12

Multiple Choice

Companies place a considerable amount of attention on compensation plans because

• A) firms are likely to face stiff penalties from the government if they do not offer competitive wages and salaries.
• B) attracting the right employees with good compensation packages can translate into a competitive advantage.
• C) it is a hygiene factor.
• D) a good compensation plan will be less costly than other parts of the operation.

---

Definitions:

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase over time.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of inflation and the unemployment rate in the short run.

Disinflates

Disinflation refers to a reduction in the rate of inflation, leading to a slower increase in the price levels of goods and services.

Unemployment Rate

The percentage of the working-age population that is unemployed and in the process of looking for a job.