A Company Using a Labor Market Model Holds the Philosophy

question 15

Multiple Choice

A company using a labor market model holds the philosophy that:

• A) the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace.
• B) internal equity is more important than external equity in a balanced labor market.
• C) egalitarian pay policies are more effective than elitist policies when labor demand is high.
• D) nonmonetary rewards are more effective motivators than monetary rewards.

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Definitions:

Coupon Rate

The annual interest earnings of a bond, represented as a percentage of its stated value.

Yield To Maturity

The total return expected on a bond if held to its maturity date, taking into account its current market price, interest payments, and face value.

Par Value

The face value of a bond or a stock, representing the amount that will be paid back at maturity for bonds or the nominal value of a stock.