When rates of pay and job assignments are determined by administrative rules and implicit promises of management, then the firm is operating in:
A) an internal labor market.
B) a competitive labor market.
C) a human capital market.
D) a risk sharing market.

Question

Quizplus · Accepted Answer

An internal labor market refers to a situation where a firm assigns job roles and determines the rates of pay based on the implicit promises of management and administrative rules. This is in contrast to a competitive labor market where job roles and wages are determined by market forces such as supply and demand. A human capital market refers to the market for skills and knowledge, while a risk-sharing market refers to a market where risks are shared among individuals or organizations. Therefore, the best choice is A.

When Rates of Pay and Job Assignments Are Determined by Administrative