To Help with Motivation, Long-Term Productivity, and Retention, Firms with Internal

question 28

Multiple Choice

To help with motivation, long-term productivity, and retention, firms with internal labor markets tend to offer all of the following except which of the following?

• A) Efficiency wages.
• B) Benchmark competitive wages.
• C) Pay based on job seniority.
• D) Internally based promotion systems.

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Definitions:

Average Propensity

The average tendency of an entity (such as a household) to spend a portion of income; can pertain to consumption or saving.

Disposable Income

Disposable income is the portion of an individual's or household's earnings left over for savings and expenditures after paying off income taxes.

Autonomous C

Autonomous consumption, the level of spending not influenced by current levels of income.

Induced C

Induced consumption, which refers to the spending by households that varies with income levels.