Pay Rates Within a Firm Seem to Show Less Variation

question 18

Multiple Choice

Pay rates within a firm seem to show less variation than marginal productivity rate differences.This is because

• A)Firms can not measure marginal productivity accurately
• B)Firms compensate their high producers with non-monetary perks
• C)Social norms do not allow employers to pay high productivity wages
• D)As much as possible firms try to pay employees the same rate for fairness reasons

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Definitions:

Cerebral Cortex

The outer layer of neural tissue of the cerebrum in the brain, responsible for higher brain functions like thought and action.

Inhibitory Neurons

Neurons that reduce the activity of their target neurons, playing critical roles in regulating neural circuits.

Golgi Tendon Reflex

A protective reflex mechanism that helps prevent muscle damage during excessive force generation.

Excessive Tension

A state of being overstressed or strained, in physical or emotional contexts.