Question 1

Underpayment followed by overpayment is most likely to

Accepted Answer

A)  decrease work incentives due to low wages in the first period. 
B)  require greater supervision. 
C)  attract present-oriented workers. 
D)  increase productivity of workers seeking to qualify for later overpayment. 
A)  decrease work incentives due to low wages in the first period. 
B)  require greater supervision. 
C)  attract present-oriented workers. 
D)  increase productivity of workers seeking to qualify for later overpayment.

Question 2

An employer and a worker, if both are honest and work hard, together produce $200,000 a year, of which the employer gets $50,000 and the worker $150,000. If either one is dishonest and lazy, they break up, the employer employs someone else and the worker gets another employer. The following shows what they might earn if they broke up. In which case is it likely that both the employer and the worker will be honest and hard working?

Accepted Answer

A)  if they break up, the employer makes $60,000 and the worker $80,000 
B)  if they break up, the employer makes $20,000 and the worker $175,000 
C)  if they break up, the employer makes $75,000 and the worker $175,00 
D)  if they break up, the employer makes $25,000 and the worker $125,000 
A)  if they break up, the employer makes $60,000 and the worker $80,000 
B)  if they break up, the employer makes $20,000 and the worker $175,000 
C)  if they break up, the employer makes $75,000 and the worker $175,00 
D)  if they break up, the employer makes $25,000 and the worker $125,000

Question 3

An employment contract is most likely to be successful when it

Accepted Answer

A)  provides the proper incentives so as to be self-enforcing. 
B)  can be legally defensible. 
C)  can be specific about all tasks required of the employee. 
D)  includes legal penalties if either party abrogates the contract. 
A)  provides the proper incentives so as to be self-enforcing. 
B)  can be legally defensible. 
C)  can be specific about all tasks required of the employee. 
D)  includes legal penalties if either party abrogates the contract.

Question 4

Free rider problems tend to be largest when

Accepted Answer

A)  workers are paid by a piece-rate system. 
B)  workers are paid by group incentives. 
C)  workers are paid on commission. 
D)  firms are very small. 
A)  workers are paid by a piece-rate system. 
B)  workers are paid by group incentives. 
C)  workers are paid on commission. 
D)  firms are very small.

Question 5

Which of the following can NOT explain why large firms tend to pay higher salaries?

Accepted Answer

A)  Large firms find monitoring more expensive. 
B)  Large firms allow less independence and have more rigid discipline. 
C)  Large firms find job vacancies less costly. 
D)  Efficiency wages work better in large firms. 
A)  Large firms find monitoring more expensive. 
B)  Large firms allow less independence and have more rigid discipline. 
C)  Large firms find job vacancies less costly. 
D)  Efficiency wages work better in large firms.

Underpayment followed by overpayment is most likely to

An employment contract is most likely to be successful when it

Free rider problems tend to be largest when

Which of the following can NOT explain why large firms tend to pay higher salaries?

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

Exam 11: Pay and Productivity: Wage Determination Within the Firm

Underpayment followed by overpayment is most likely to

An employment contract is most likely to be successful when it

Free rider problems tend to be largest when

Which of the following can NOT explain why large firms tend to pay higher salaries?

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters