While Setting Pay Levels Initially, an Organization Has to Balance

question 55

Multiple Choice

While setting pay levels initially, an organization has to balance internal equity and external equity. Here external equity indicates ________.

• A) the amount of growth opportunities the job provides to the employee
• B) the worth of the job to the employee
• C) the worth of the job to the organization
• D) competitiveness of an organization's pay relative to pay elsewhere in its industry
• E) the amount of job satisfaction the job provides to the employee

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Definitions:

Anna Jacobson Schwartz

An American economist known for her collaborative work with Milton Friedman on the history of monetary policy and banking.

Money Stock

Represents the total quantity of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services within an economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.