What Critical Assumption Underpins Labour Market Compensation Surveys That May

question 45

Multiple Choice

What critical assumption underpins labour market compensation surveys that may serve to illustrate the need for pay equity legislation?

• A) Usage of compensation surveys assumes that the market values jobs in a fair manner.
• B) The market demand and supply of labour tends to operate at an equilibrium in the short term.
• C) Calibration of the pay system will insure a near-perfect labour price.
• D) Targeting a compa-ratio of 1 eliminates the need for pay equity legislation.

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