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

Question

Quizplus · Accepted Answer

An internal labor market refers to a situation where firms establish their rates of pay and job assignments based on administrative rules and implicit promises of management, rather than on the external market conditions. In such a market, employees are promoted and transferred based on their performance and seniority within the company. Therefore, it is best to choose option A) internal labor market.

When Rates of Pay and Job Assignments Are Determined by Administrative