As Discussed in the Book, the Rationale for Removing the Secrecy

question 76

Multiple Choice

As discussed in the book, the rationale for removing the secrecy surrounding salaries is that

• A)we should be honest with employees, and this is a good place to start.
• B)they know salaries anyway, via the grapevine, but secrecy reduces confidence in the company.
• C)positive motivational consequences may occur if the pay system is well designed.
• D)consumers should understand that labour costs contribute greatly to retail prices.
• E)a more open pay policy will expose the inadequacy of the merit system.

---

Definitions:

Autarky Price

The price of a good or service within a country that is not involved in trade; the domestic price in the absence of international trade.

Autarky Price

The price of a good in a country when it is closed to international trade, reflecting the balance of domestic supply and demand.

International Trade

The exchange of goods, services, and capital between countries or territories.

Domestic Market

The domestic market refers to the economic activities and transactions happening within a country's borders, focusing on the buying and selling of goods and services locally.