A Fall in Import Prices or an Increase in Productivity

question 55

Multiple Choice

A fall in import prices or an increase in productivity ________.

• A)constitute a positive supply shock
• B)typically leads to a rise in commodity prices
• C)typically comes with a reduction in output
• D)all of the above
• E)none of the above

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Definitions:

Market Pricing

The process of determining the price of a job in the external labor market through salary surveys and benchmarking exercises.

Wage-Rate Compression

Compression of differentials between job classes, particularly the differential between hourly workers and their managers.

Employee Morale

The overall outlook, satisfaction, and confidence that employees feel towards their work and workplace environment.

Absenteeism

The habitual or frequent absence from work or duties without good reason, which can impact organizational productivity and morale.