The Theory of Internal Wage Structure Predicts That Worker Pay

question 54

Multiple Choice

The theory of internal wage structure predicts that worker pay will come closest to the value of their marginal product if

• A)they work in an environment that has intensive workplace interaction.
• B)their work allows them to do most of their work at home.
• C)they work at a job that is unskilled.
• D)the worker is a research chemist rather than a real estate sales agent.

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Definitions:

Flexible Budget

A budget that modifies based on fluctuations in activity levels or volume.

Output

The quantity of goods or services produced in a given time period by a company, individual, or machine.

Budgeting

The process of creating a plan to spend your money, outlining anticipated income and expenses for a future period.

January

The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.