The Tendency of Markets to Automatically Gravitate Toward Equilibrium Is

question 41

Multiple Choice

The tendency of markets to automatically gravitate toward equilibrium is an application of which core principle?

• A)The Scarcity Principle
• B)The Cost-Benefit Principle
• C)The Principle of Comparative Advantage
• D)The Incentive Principle

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Definitions:

Benchmark Jobs

Positions that are standardized across organizations and industries, used as reference points for setting wage scales and job evaluations.

Market Pay Policy

A compensation strategy that aligns employee salaries with the going rate for similar roles in the external job market.

Pay Survey Data

Information collected from various businesses on salary and benefits, used to benchmark and determine competitive salary ranges and compensation plans.

Job Descriptions

Detailed documents outlining the tasks, responsibilities, skills, outcomes, and work environment of a specific job position.