Pay Policies Indicate the Kinds of Behaviour an Employer Seeks

question 21

Multiple Choice

Pay policies indicate the kinds of behaviour an employer seeks. This is a prediction of ________ labour demand theory.

• A)reservation wage
• B)signalling
• C)compensating differentials
• D)efficiency wage
• E)human capital

---

Definitions:

Entire Market

The total sales volume of all competitors within a particular industry or sector.

Demand Conditions

Refers to the nature and scale of demand in the industry which affects the competitiveness and strategy of firms.

Potential Competitors

Firms or individuals that are not currently in the market but have the ability to enter and compete in the future.

Oligopolistic Industry

A market structure characterized by a small number of firms dominating the market, leading to strategic interactions in pricing and output.