The Model Used to Study the Earnings of Resources of

question 68

Multiple Choice

The model used to study the earnings of resources of
Production is called:

• A)comparative advantage theory.
• B)absolute advantage theory.
• C)specific­factors model.
• D)production possibility frontier.

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Definitions:

Wage Compression

A situation where differences in wages between employees become small, often because of external pressures, leading to reduced pay gaps between new and experienced employees, or between different job roles.

Annual Basis

Refers to calculations, measurements, or assessments made over the course of a year.

Increased Turnover

A higher rate at which employees leave a company and are replaced, which can indicate dissatisfaction or a dynamic job market.

Compa-ratio

A comparative ratio used in compensation management to determine an employee's pay relative to the midpoint of the market or their pay grade.