Question 1

Graduating students usually find themselves in a quoted-labor market.

Accepted Answer

A) True 
 B)False  True

Question 2

_____ 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 B

Question 3

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 B

Question 4

Talented individuals have a higher marginal value in larger organizations.

Accepted Answer

A) True 
 B)False

Question 5

Employers in highly competitive markets are more able to raise prices without loss of revenues.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of a quoted-price market?

Accepted Answer

A) Streetcash, a website that allows buyers to negotiate product prices with the sellers 
B) Vidwom, a website that allows buyers to bid for items sold by other users 
C) Gramspot, a website where cars are auctioned by sellers for charity 
D) Nile, a website that allows sellers to sell their products for a fixed price 
A) Streetcash, a website that allows buyers to negotiate product prices with the sellers 
B) Vidwom, a website that allows buyers to bid for items sold by other users 
C) Gramspot, a website where cars are auctioned by sellers for charity 
D) Nile, a website that allows sellers to sell their products for a fixed price

Question 9

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

Accepted Answer

A) Government legislation 
B) The product market 
C) The labor market 
D) Labor market competition 
A) Government legislation 
B) The product market 
C) The labor market 
D) Labor market competition

Question 10

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

Accepted Answer

The answer of The most influential theory explaining pay-level differences...

Question 11

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

Accepted Answer

A) human capital 
B) marginal productivity 
C) efficiency-wage 
D) signaling 
A) human capital 
B) marginal productivity 
C) efficiency-wage 
D) signaling

Question 12

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 13

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

Accepted Answer

A) work/life balance policy 
B) security policy 
C) performance-driven policy 
D) market match policy 
A) work/life balance policy 
B) security policy 
C) performance-driven policy 
D) market match policy

Question 14

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

Question 15

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 16

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

Accepted Answer

A) Neurofort, a website that sells surgical equipment in bulk at fixed prices 
B) Hardknox, a hardware store that sells all its products at 10 percent above the maximum retail price 
C) Needlefarm, a store that sells premium furniture at discounted rates 
D) Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods 
A) Neurofort, a website that sells surgical equipment in bulk at fixed prices 
B) Hardknox, a hardware store that sells all its products at 10 percent above the maximum retail price 
C) Needlefarm, a store that sells premium furniture at discounted rates 
D) Flatcake, a website that allows buyers to negotiate the prices with the sellers of handmade goods

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____.

Accepted Answer

A) individual-based pay 
B) variable pay 
C) flexible benefits 
D) job-based pay 
A) individual-based pay 
B) variable pay 
C) flexible benefits 
D) job-based pay

Question 20

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.

Accepted Answer

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

Graduating students usually find themselves in a quoted-labor market.

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

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

Talented individuals have a higher marginal value in larger organizations.

Employers in highly competitive markets are more able to raise prices without loss of revenues.

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

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

Which of the following is an example of a quoted-price market?

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

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

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

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

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

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.

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?

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

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

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

A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____.

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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

Graduating students usually find themselves in a quoted-labor market.

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

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

Talented individuals have a higher marginal value in larger organizations.

Employers in highly competitive markets are more able to raise prices without loss of revenues.

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

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

Which of the following is an example of a quoted-price market?

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

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

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

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

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

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.

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?

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

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

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

A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____.

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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.