When Employees Are Paid According to the Skills and Knowledge

question 79

True/False

When employees are paid according to the skills and knowledge they have rather than the specific jobs they perform, they are paid according to competency-based compensation.

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Definitions:

Demand Curve

A visual depiction showing how the quantity demanded of a good correlates with its price, usually showing a decline in demand as prices increase.

Plaster

A building material used for coating, protecting, and decorating interior and exterior walls and ceilings, made from lime, sand, and water.

Labor

The effort, both physical and mental, that people contribute to the production of goods and services in an economy.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.