If the Price of a Firm's Product Rose Faster Than

question 45

Multiple Choice

If the price of a firm's product rose faster than the overall pace of inflation, then you would expect to see that firm's output

• A) increase.
• B) decrease.
• C) remain unchanged.
• D) move steadily in a direction dictated by circumstances not described in this question.
• E) move erratically around a predetermined target whose specification would be unaffected by general inflation.

---

Definitions:

Compensation Costs

The total of an employer's expenses for employee salaries, wages, benefits, and other forms of compensation.

Competency-Based Pay System

A salary structure that compensates employees based on the specific skills, knowledge, and abilities they bring to their roles, rather than their job title or position.

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal issues, or disengagement with work.

Strategic Compensation

A compensation strategy designed to align with and support the organization's broader goals, objectives, and competitive position.