Question 1

Which of the following is an example of the demand side of labor?

Accepted Answer

A)  Level of pay applicants will accept 
B)  Qualifications of applicants 
C)  Pay level offered by an employer 
D)  Locations of potential employees 
A)  Level of pay applicants will accept 
B)  Qualifications of applicants 
C)  Pay level offered by an employer 
D)  Locations of potential employees

Question 2

What is the significance of marginal revenue?

Accepted Answer

Marginal revenue is the money generated

Question 3

Which of the following is NOT true of the relationship between employer size and its ability to pay?

Accepted Answer

A)  Talented individuals have a lower marginal value in a larger organization. 
B)  Talented people can influence more people and decisions. 
C)  Influence of talented people leads to more profits. 
D)  Talented people prefer to work in larger organizations. 
A)  Talented individuals have a lower marginal value in a larger organization. 
B)  Talented people can influence more people and decisions. 
C)  Influence of talented people leads to more profits. 
D)  Talented people prefer to work in larger organizations.

Question 4

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Accepted Answer

A)  Labor costs are a small share of total costs. 
B)  Employee skills are generic across all product markets. 
C)  Product demand is responsive to price changes. 
D)  The supply of labor is not responsive to changes in pay. 
A)  Labor costs are a small share of total costs. 
B)  Employee skills are generic across all product markets. 
C)  Product demand is responsive to price changes. 
D)  The supply of labor is not responsive to changes in pay.

Question 5

Research shows that a lead pay strategy reduces turnover.

Accepted Answer

A) True 
 B)False

Question 6

Explain external competitiveness.

Accepted Answer

External competitiveness refers to the p

Question 7

Druk Inc.is a consulting firm with 10 employees.Each new client generates $10,000 in revenue.If the company hires another employee who brings in five new clients and all other factors of production are constant,which of the following statements is true?

Accepted Answer

A)  Druk will break even if it hires a twelfth employee for a wage of $50,000. 
B)  Druk needs to pay $10,000 as wage to the eleventh employee to break even. 
C)  Druk will break even if it hires a thirteenth employee for a wage of $10,000. 
D)  Druk needs to pay $50,000 as wage to the eleventh employee to break even. 
A)  Druk will break even if it hires a twelfth employee for a wage of $50,000. 
B)  Druk needs to pay $10,000 as wage to the eleventh employee to break even. 
C)  Druk will break even if it hires a thirteenth employee for a wage of $10,000. 
D)  Druk needs to pay $50,000 as wage to the eleventh employee to break even.

Question 8

The product market sets the floor on the minimum wage required to attract sufficient numbers of employees.

Accepted Answer

A) True 
 B)False

Question 9

Stores that label each item's price or ads that list a job opening's starting wage are examples of bourses.

Accepted Answer

A) True 
 B)False

Question 10

The most influential theory explaining pay-level differences is marginal revenue productivity.
FALSE

Accepted Answer

A) True 
 B)False

Question 11

The three factors usually used to determine the relevant labor markets are the occupation,geography,and competitors.

Accepted Answer

A) True 
 B)False

Question 12

_____ is the additional output associated with the employment of one additional person,with other production factors held constant.

Accepted Answer

A)  Productivity 
B)  The marginal product of labor 
C)  Incremental productivity 
D)  The marginal revenue of labor 
A)  Productivity 
B)  The marginal product of labor 
C)  Incremental productivity 
D)  The marginal revenue of labor

Question 13

Talented individuals have a higher marginal value in larger organizations.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a reason a company might pay base wages above market?

Accepted Answer

A)  To increase employee productivity 
B)  To increase turnover rates 
C)  To increase wage satisfaction 
D)  To attract more job applicants 
A)  To increase employee productivity 
B)  To increase turnover rates 
C)  To increase wage satisfaction 
D)  To attract more job applicants

Question 15

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

Accepted Answer

A) True 
 B)False

Question 16

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n)_____.

Accepted Answer

A)  lead policy 
B)  employer of choice policy 
C)  lag policy 
D)  match policy 
A)  lead policy 
B)  employer of choice policy 
C)  lag policy 
D)  match policy

Question 17

Combat pay premiums paid to military personnel to offset some of the risk of being fired upon is an example of a lead pay-level policy.

Accepted Answer

A) True 
 B)False

Question 18

An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are advantages of a lead pay-level policy EXCEPT _____.

Accepted Answer

A)  reduced vacancy rates 
B)  higher turnover rates 
C)  reduced absenteeism 
D)  better-quality employees 
A)  reduced vacancy rates 
B)  higher turnover rates 
C)  reduced absenteeism 
D)  better-quality employees

Question 20

In a hiring situation,considering that other potential costs will not change in the short run,the level of demand that maximizes profits is that level at which the _____ of the last hire is equal to the _____ for that hire.

Accepted Answer

A)  demand factor;supply factor 
B)  marginal output;market price 
C)  incremental output;marginal output 
D)  marginal revenue;wage rate 
A)  demand factor;supply factor 
B)  marginal output;market price 
C)  incremental output;marginal output 
D)  marginal revenue;wage rate

Which of the following is an example of the demand side of labor?

What is the significance of marginal revenue?

Which of the following is NOT true of the relationship between employer size and its ability to pay?

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Research shows that a lead pay strategy reduces turnover.

Explain external competitiveness.

Druk Inc.is a consulting firm with 10 employees.Each new client generates $10,000 in revenue.If the company hires another employee who brings in five new clients and all other factors of production are constant,which of the following statements is true?

The product market sets the floor on the minimum wage required to attract sufficient numbers of employees.

Stores that label each item's price or ads that list a job opening's starting wage are examples of bourses.

The most influential theory explaining pay-level differences is marginal revenue productivity. FALSE

The three factors usually used to determine the relevant labor markets are the occupation,geography,and competitors.

_____ is the additional output associated with the employment of one additional person,with other production factors held constant.

Talented individuals have a higher marginal value in larger organizations.

Which of the following is NOT a reason a company might pay base wages above market?

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n)_____.

Combat pay premiums paid to military personnel to offset some of the risk of being fired upon is an example of a lead pay-level policy.

An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

All of the following are advantages of a lead pay-level policy EXCEPT _____.

In a hiring situation,considering that other potential costs will not change in the short run,the level of demand that maximizes profits is that level at which the _ of the last hire is equal to the _ for that hire.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 7: Defining Competitiveness

Which of the following is an example of the demand side of labor?

What is the significance of marginal revenue?

Which of the following is NOT true of the relationship between employer size and its ability to pay?

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Research shows that a lead pay strategy reduces turnover.

Explain external competitiveness.

Druk Inc.is a consulting firm with 10 employees.Each new client generates $10,000 in revenue.If the company hires another employee who brings in five new clients and all other factors of production are constant,which of the following statements is true?

The product market sets the floor on the minimum wage required to attract sufficient numbers of employees.

Stores that label each item's price or ads that list a job opening's starting wage are examples of bourses.

The most influential theory explaining pay-level differences is marginal revenue productivity. FALSE

The three factors usually used to determine the relevant labor markets are the occupation,geography,and competitors.

_____ is the additional output associated with the employment of one additional person,with other production factors held constant.

Talented individuals have a higher marginal value in larger organizations.

Which of the following is NOT a reason a company might pay base wages above market?

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n)_____.

Combat pay premiums paid to military personnel to offset some of the risk of being fired upon is an example of a lead pay-level policy.

An employer offering lower base pay with high bonuses is a likely signal that it is seeking risk-taking employees.

All of the following are advantages of a lead pay-level policy EXCEPT _____.

In a hiring situation,considering that other potential costs will not change in the short run,the level of demand that maximizes profits is that level at which the _____ of the last hire is equal to the _____ for that hire.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

In a hiring situation,considering that other potential costs will not change in the short run,the level of demand that maximizes profits is that level at which the _ of the last hire is equal to the _ for that hire.