Alex,a Researcher,claims That an Exceptional Employee with Low Pay Will

question 11

Multiple Choice

Alex,a researcher,claims that an exceptional employee with low pay will benefit more than his or her co-workers,who receive significantly better pay but perform below expectations,in a merit pay system.Which of the following statements strengthens Alex's claim?

• A) An employee receiving high pay performs better than other employees.
• B) The quality of the output produced by employees with high pay is better than that of other employees.
• C) Employees with high pay complete their work before the standard time.
• D) A higher pay range results in lower compa-ratios causing a bigger merit raise.
• E) The average pay in a merit pay system can only rise by a maximum of 2% each year.

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Definitions:

Price Effect

The impact on consumer demand or supply of goods due to changes in the price of those goods or related goods.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Oligopoly

A market structure characterized by a small number of firms whose decisions affect and are affected by each other.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of other players, and no player has anything to gain by changing only their own strategy.