Application 3C pg. 5 - 6

Question 1

List the numerous factors that can determine why wages and salaries are different for people working the same job and for those employed in different types of jobs.

Answer 1

>location
>education
>experience
>industry
>productivity
>techonology

Question 2

Describe how salaries and wages could be different for same job depending on location

Answer 2

Salaries and wages are different for same job position in different parts of country.
>in very large cities on east and west coast of US, pay scales are much higher than in South or Midwest because cost of living is higher

Question 3

Describe how salaries and wages could be different for same job position due to education or experience

Answer 3

> employers are influenced by advanced degrees in education, industrial certifications, and professional licenses when defining salaries and wages
for example, new engineering graduate with specific computer skills may command higher salary than new graduate without this skill

Question 4

Describe how salaries and wages could be different for same job position because of industry

Answer 4

> success of industry and individual company has effect on salaries that corporation is able to offer employees
some occupations where wages are determined by direct success in carrying out job duties such as in marketing and sales
individuals who consistently bring large accounts to their employer will usually earn more than one who is less successful
a job level with more responsibility or complexity will carry out higher wage scale

Question 5

Define and describe productivity

Answer 5

productivity - measure of how efficiently resources are employed
*increased productivity usually leads to higher salaries
>since labor accounts for average of 70% of cost of production, labor cost is usually used to measure productivity
>productivity is measured by dividing the average output by the total cost required

Question 6

Explain how technology has an effect on wages

Answer 6

> using technology can increase productivity therefore leading to higher salaries