Which of the Following Is a Disadvantage Associated with Competency-Based

question 22

Multiple Choice

Which of the following is a disadvantage associated with competency-based pay systems?

• A)Changing technology requires employees to continually widen and deepen their knowledge.
• B)They help make organizations more flexible and innovative.
• C)It rewards employees for acquiring skills that they may not use.
• D)All of the above.
• E)None of the abovE.

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Definitions:

Sticky-Price Theory

The economic theory that prices of goods do not adjust immediately to changing economic conditions, leading to periods of economic inefficiency.

Menu Costs

The costs of changing prices.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, serving as an indicator of inflation or deflation.

Aggregate Quantity

The total amount or sum of goods and services produced or supplied in an economy at a given overall price level during a specific time period.