In Recent Years, the Ratio of Earnings of the Typical

question 116

Multiple Choice

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

• A) risen as the demand for skilled labor has increased relative to the demand for unskilled labor.
• B) risen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
• C) fallen as the demand for skilled labor has increased relative to the demand for unskilled labor.
• D) fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.

---

Definitions:

Pay Secrecy

A policy or practice where details about individual employee's salaries are not disclosed or are kept hidden.

Salaries

Periodic payments from an employer to an employee, usually as compensation for professional services rendered.

Merit Pay Plans

A company’s compensation strategy that rewards employees based on their performance and achievements rather than their job position or seniority.

Wage Incentive Plans

A compensation strategy designed to motivate employees to higher performance through financial rewards based on productivity or efficiency.