When an Employer's Information Indicates That Two Individuals Have Exactly

question 26

Multiple Choice

When an employer's information indicates that two individuals have exactly the same productivity, there will be competitive pressure to

• A)pay lower wages to the person who belongs to the group with the higher average productivity.
• B)pay both workers the same wage rate even if one worker belongs to a group with a higher average productivity.
• C)pay higher wages to the person who belongs to the group with the higher average productivity.
• D)not hire the person who belongs to the lower average production group.

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Definitions:

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).

GAAP

A set of widely adhered to accounting norms and guidelines for the preparation of financial statements, known as Generally Accepted Accounting Principles.

IFRS

International Financial Reporting Standards are global accounting norms formulated by the International Accounting Standards Board (IASB) for the preparation of public company financial reports worldwide.

Rules-Based

Rules-based refers to systems or processes that are governed by a set of explicit or predetermined rules or principles to ensure consistency and standardization.