Exam 7: Defining Competitiveness

The _____ theory is the most influential in explaining pay-level differences.

In a labor market,the market rate is where the lines for labor demand and labor supply cross.

According to efficiency-wage theory,paying higher wages than competitors can lower labor costs due to more efficient workers.

Pay level decisions have a significant impact on expenses.Other things being equal,the higher the pay level,the higher the:

Both pay level and pay mix decisions focus on two objectives: (1)control costs and increase revenues and (2)attract and retain employees.

Which of the following statements is true of pay level?

In a labor market,the demand side focuses on the actions of the employers.

The most common pay policy is a(n)_____.

Evidence shows that in manufacturing,_____ is positively correlated with hourly wage level.

Human capital theory assumes that people are paid at the value of their marginal product.

What are the factors that influence decisions on pay level and pay mix?

Wages tend to be the lowest in which of the following industries?

Employers tend to overestimate the importance of pay to employees and underestimate the role of relationships with the supervisor.

All of the following are important factors in defining a market for compensation purposes EXCEPT:

_____ puts a lid on the maximum pay level an employer can set.

Among pay-mix alternatives,the percentage of base pay is highest in _____.

A manager of a company could be a factor affecting the company's external competitiveness.

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as _____.

Which of the following is an example of a bourse market?

A small lawn care company has two mowers and four employees.If it hires another employee and the factors of production remain the same,how will the productivity of the fifth employee compare to that of the current four employees?