A compa-ratio of 1 suggests that actual pay is not consistent with the pay policy.

Question

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Comparable-worth policies are controversial. From an economic standpoint, the obvious drawback of such a policy is that raising pay for some jobs places the employer at an economic disadvantage relative to employers that pay the market rate. A free-market economy assumes people will take differences in pay into account when they choose a career.

A Compa-Ratio of 1 Suggests That Actual Pay Is Not