Pay differentials need to be greater to be meaningful,especially ________.
A) at lower job levels
B) at higher job levels
C) during periods of recession
D) during periods of inflation

Question

Quizplus · Accepted Answer

B)The rate ranges established should be large enough to provide an incentive to do a better job.At higher levels,pay differentials may need to be greater to be meaningful.For example,a $200-per-month salary increase means more to an employee earning $2,000 per month (a 10 percent increase)than to an employee earning $5,000 per month (a 4 percent increase).Assuming an inflation rate of 4 percent,the latter employee's real pay would remain unchanged.

Pay Differentials Need to Be Greater to Be Meaningful,especially ________