Question 1

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

Accepted Answer

A) True 
 B)False  False

Question 2

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the ____________puts a lid on the maximum pay level that an employer can set.

Accepted Answer

A) product market 
B) employee turnover 
C) labour demand 
D) job market 
E) labour supply 
A) product market 
B) employee turnover 
C) labour demand 
D) job market 
E) labour supply A

Question 3

What is marginal product of labour?

Accepted Answer

The marginal product of labour is the additional output associated with the employment of one additional human resources unit, with other production factors held constant.

Question 4

Signalling theory assumes that an employer who combines lower base with high bonuses may be signalling that it wants employees who are risk takers.

Accepted Answer

A) True 
 B)False

Question 5

Compensating differentials theory states that:

Accepted Answer

A) higher wages must be offered to employees when chances of success are high 
B) higher wages must be offered to employees to compensate for any negative features of jobs 
C) high wages will increase efficiency and lower labour costs if they lower turnover 
D) job seekers have a reservation wage level below which they will not accept a job offer 
E) pay levels and pay mix are designed to signal desired employee behaviours 
A) higher wages must be offered to employees when chances of success are high 
B) higher wages must be offered to employees to compensate for any negative features of jobs 
C) high wages will increase efficiency and lower labour costs if they lower turnover 
D) job seekers have a reservation wage level below which they will not accept a job offer 
E) pay levels and pay mix are designed to signal desired employee behaviours

Question 6

Which of the following is an assumption of economic theories of labour markets?

Accepted Answer

A) There is a huge advantage for a single employer to pay above the market rate. 
B) Pay rates reflect only the base wage associated with employment. 
C) People are homogenous and therefore interchangeable. 
D) There is a huge advantage for a single employer to pay below the market rate. 
E) Employers are not always interested in maximizing profits. 
A) There is a huge advantage for a single employer to pay above the market rate. 
B) Pay rates reflect only the base wage associated with employment. 
C) People are homogenous and therefore interchangeable. 
D) There is a huge advantage for a single employer to pay below the market rate. 
E) Employers are not always interested in maximizing profits.

Question 7

Marginal product and marginal revenue are directly measurable.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a result of following the pay with competition (match)theory?

Accepted Answer

A) an increase in voluntary turnover 
B) a decrease in the pool of qualified applicants 
C) an increase in operating expenses 
D) an increase in the probability of union-free status 
E) an increase in pay-related work stoppages 
A) an increase in voluntary turnover 
B) a decrease in the pool of qualified applicants 
C) an increase in operating expenses 
D) an increase in the probability of union-free status 
E) an increase in pay-related work stoppages

Question 9

The additional income generated when a firm employs one additional unit of human resources, with other production factors held constant is known as the marginal ________.

Accepted Answer

A) revenue of labour 
B) cost of labour 
C) input 
D) net income 
E) labour expenditure 
A) revenue of labour 
B) cost of labour 
C) input 
D) net income 
E) labour expenditure

Question 10

Define the marginal revenue of labour.

Accepted Answer

The marginal revenue of labour

Question 11

Competition in the labour market for people with various skills is a product market factor that shapes external competitiveness.

Accepted Answer

A) True 
 B)False

Question 12

The data from product market competitors are likely to receive greater weight when:

Accepted Answer

A) product demand is not related to price changes 
B) the level of skill needed to perform the job is high 
C) the supply of labour is not responsive to changes in pay 
D) employee skills are not specific to the product market 
E) labour costs are a small share of total costs 
A) product demand is not related to price changes 
B) the level of skill needed to perform the job is high 
C) the supply of labour is not responsive to changes in pay 
D) employee skills are not specific to the product market 
E) labour costs are a small share of total costs

Question 13

The human capital theory assumes that people are paid at the value of their reservation wage.

Accepted Answer

A) True 
 B)False

Question 14

The wage level below which an employee declines a job offer is known as a:

Accepted Answer

A) living wage level 
B) competitive wage level 
C) reservation wage level 
D) prevailing wage level 
E) market wage level 
A) living wage level 
B) competitive wage level 
C) reservation wage level 
D) prevailing wage level 
E) market wage level

Question 15

Discuss the predictions of the compensating differentials theory.

Accepted Answer

Compensating differentials theory says t

Question 16

Which of the following statements about external competitiveness is true?

Accepted Answer

A) External competitiveness refers to an organization's pay relative to other organizations. 
B) External competitiveness refers to the total compensation paid by an employer to an employee. 
C) External competitiveness refers to pay relationships among employees of an organization. 
D) External competitiveness refers to the budget allocation for a department relative to other departments in an organization. 
E) External competitiveness refers to the competitiveness between employees of an organization. 
A) External competitiveness refers to an organization's pay relative to other organizations. 
B) External competitiveness refers to the total compensation paid by an employer to an employee. 
C) External competitiveness refers to pay relationships among employees of an organization. 
D) External competitiveness refers to the budget allocation for a department relative to other departments in an organization. 
E) External competitiveness refers to the competitiveness between employees of an organization.

Question 17

External competitiveness is expressed in practice by:

Accepted Answer

A) comparing the performance of departments within an organization 
B) increasing the compensation differences between employees in an organization 
C) encouraging the competitiveness of employees within an organization 
D) setting a pay level that is above, below, or equal to competitors' 
E) equalizing pay for all employees within the organization, irrespective of seniority 
A) comparing the performance of departments within an organization 
B) increasing the compensation differences between employees in an organization 
C) encouraging the competitiveness of employees within an organization 
D) setting a pay level that is above, below, or equal to competitors' 
E) equalizing pay for all employees within the organization, irrespective of seniority

Question 18

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

Accepted Answer

A) human capital theory 
B) signalling theory 
C) efficiency wage theory 
D) reservation wage theory 
E) compensating differentials theory 
A) human capital theory 
B) signalling theory 
C) efficiency wage theory 
D) reservation wage theory 
E) compensating differentials theory

Question 19

The marginal revenue of labour refers to:

Accepted Answer

A) he technology employed by organizations 
B) the difference in technology across industries and new technology within the same industry 
C) the additional output from the employment of one additional person 
D) the level of demand for a product 
E) the low-wage, no-mix strategy employed by organizations 
A) he technology employed by organizations 
B) the difference in technology across industries and new technology within the same industry 
C) the additional output from the employment of one additional person 
D) the level of demand for a product 
E) the low-wage, no-mix strategy employed by organizations

Question 20

The mix of the various types of payments that make up total compensation is known as:

Accepted Answer

A) wage grade 
B) pay back 
C) pay forms 
D) average wage 
E) pay level 
A) wage grade 
B) pay back 
C) pay forms 
D) average wage 
E) pay level

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the ____________puts a lid on the maximum pay level that an employer can set.

What is marginal product of labour?

Signalling theory assumes that an employer who combines lower base with high bonuses may be signalling that it wants employees who are risk takers.

Compensating differentials theory states that:

Which of the following is an assumption of economic theories of labour markets?

Marginal product and marginal revenue are directly measurable.

Which of the following is a result of following the pay with competition (match)theory?

The additional income generated when a firm employs one additional unit of human resources, with other production factors held constant is known as the marginal ________.

Define the marginal revenue of labour.

Competition in the labour market for people with various skills is a product market factor that shapes external competitiveness.

The data from product market competitors are likely to receive greater weight when:

The human capital theory assumes that people are paid at the value of their reservation wage.

The wage level below which an employee declines a job offer is known as a:

Discuss the predictions of the compensating differentials theory.

Which of the following statements about external competitiveness is true?

External competitiveness is expressed in practice by:

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

The marginal revenue of labour refers to:

The mix of the various types of payments that make up total compensation is known as:

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 7: Defining Competitiveness

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the ____________puts a lid on the maximum pay level that an employer can set.

What is marginal product of labour?

Signalling theory assumes that an employer who combines lower base with high bonuses may be signalling that it wants employees who are risk takers.

Compensating differentials theory states that:

Which of the following is an assumption of economic theories of labour markets?

Marginal product and marginal revenue are directly measurable.

Which of the following is a result of following the pay with competition (match)theory?

The additional income generated when a firm employs one additional unit of human resources, with other production factors held constant is known as the marginal ________.

Define the marginal revenue of labour.

Competition in the labour market for people with various skills is a product market factor that shapes external competitiveness.

The data from product market competitors are likely to receive greater weight when:

The human capital theory assumes that people are paid at the value of their reservation wage.

The wage level below which an employee declines a job offer is known as a:

Discuss the predictions of the compensating differentials theory.

Which of the following statements about external competitiveness is true?

External competitiveness is expressed in practice by:

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

The marginal revenue of labour refers to:

The mix of the various types of payments that make up total compensation is known as:

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters