A company using a labor market model holds the philosophy that:
A) the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace.
B) internal equity is more important than external equity in a balanced labor market.
C) egalitarian pay policies are more effective than elitist policies when labor demand is high.
D) nonmonetary rewards are more effective motivators than monetary rewards.

Question

Quizplus · Accepted Answer

A labor market model operates on the premise that the supply of labor will equal the demand for that labor in the marketplace. This equilibrium is reached when the wage rate is set at the point where the supply and demand curves intersect.

A Company Using a Labor Market Model Holds the Philosophy