Which of the Following Best Explains Why Current Employers Do

question 30

Multiple Choice

Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

• A) because of the wage compression phenomenon
• B) because of the negative impact on morale
• C) because labour budgets tend to be determined on an annual basis
• D) because fewer potential employees tend to put upwards pressure on wages

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Definitions:

Individualistic Countries

Societies or nations that prioritize the autonomy and personal goals of the individual over the collective goals of the group or community.

Latin America

A region in the Western Hemisphere that includes countries in South America, Central America, and the Caribbean where Romance languages are spoken.

Personal Biases

Prejudices or predispositions towards certain ideas, people, or groups that can affect judgment and decision-making.

Risky Alternatives

Options in decision-making that have potential negative outcomes or high uncertainty.