Which of the Following Is True an Employer Who Uses

question 55

Multiple Choice

Which of the following is true an employer who uses the third-quartile strategy of compensation?

• A) The employer pays the employees above market levels.
• B) The employers determine the pay irrespective of the market scenario.
• C) The employer pays the employees below market levels.
• D) The employer pays the employees on par with the market levels.

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Definitions:

Consumer Surplus

The gap between what consumers are prepared to pay for a good or service and what they actually do pay.

Binding Price Floor

A minimum price set by the government for certain goods and services that is above the equilibrium price, causing a surplus.

Unwanted Surplus

An excess of goods that exceeds consumer demand, leading to unsold stock and potential waste.

Inefficiencies

Refers to situations where resources are not used in the most effective way, leading to waste or lost potential benefit.