If at a Particular Wage Rate in a Competitive Labour

question 104

Multiple Choice

If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour, then

• A) the demand curve for labour will shift to the right.
• B) there will be a shortage of labour, thereby increasing the equilibrium wage rate.
• C) the supply curve for labour will shift to the right.
• D) some workers will begin to accept lower wages and induce employers to hire more workers.
• E) a black market for labour will form, with firms offering workers very high wages.

Recognize the relevance of job evaluations to organizational goals and compensation policies.

Identify different compensation strategies such as competency-based pay and strategic compensation.

Understand the legal framework governing wages, pay equity, and compensation policies.

Acknowledge the impact of wage surveys and market analysis on compensation decisions.

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Definitions:

Positivist Theory

A school of thought in sociology that asserts that societal behaviors and phenomena should be studied through empirical observation and the scientific method.

Phenomenological Theory

A philosophical approach that emphasizes the study of conscious experience from the first-person perspective, aiming to understand the essence of phenomena.

Positivist Sociologists

Sociologists who use empirical evidence and scientific methods to study society and its functions.

Causes

Factors or conditions that bring about or significantly contribute to the occurrence of an event, behavior, or condition.