Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

_____ refers to the average of the array of rates inside an organization.

Accepted Answer

A) Revenue margin 
B) Remuneration 
C) Compensation 
D) Pay level 
A) Revenue margin 
B) Remuneration 
C) Compensation 
D) Pay level

Question 3

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

Accepted Answer

A) turnover 
B) productivity 
C) job description 
D) total cost 
A) turnover 
B) productivity 
C) job description 
D) total cost

Question 4

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 5

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate.This is based on the first labor market theory assumption that:

Accepted Answer

A) markets are competitive. 
B) pay rates reflect all costs of employment. 
C) employers seek to maximize profits. 
D) workers are homogeneous and interchangeable. 
A) markets are competitive. 
B) pay rates reflect all costs of employment. 
C) employers seek to maximize profits. 
D) workers are homogeneous and interchangeable.

Question 6

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

Accepted Answer

A) the skill or knowledge required. 
B) geography. 
C) the ability to pay. 
D) product and/or labor market competitors. 
A) the skill or knowledge required. 
B) geography. 
C) the ability to pay. 
D) product and/or labor market competitors.

Question 7

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

Accepted Answer

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

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

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

Accepted Answer

A) True 
 B)False

Question 10

Segmenting sources of labor is a means of reducing labor costs.

Accepted Answer

A) True 
 B)False

Question 11

If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result?

Accepted Answer

A) The labor costs for Company A will increase, but it will be unable to hire additional workers. 
B) Company A will hire the needed workers at a higher wage rate. 
C) Competitors of Company A will lose employees to Company 
D) Company A will hire higher quality workers. 
A) The labor costs for Company A will increase, but it will be unable to hire additional workers. 
B) Company A will hire the needed workers at a higher wage rate. 
C) Competitors of Company A will lose employees to Company 
D) Company A will hire higher quality workers.

Question 12

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

Accepted Answer

A) Education and health care 
B) Technology-intensive industries 
C) Professional services 
D) Pharmaceuticals 
A) Education and health care 
B) Technology-intensive industries 
C) Professional services 
D) Pharmaceuticals

Question 13

_____ is an example of a bourse.

Accepted Answer

A) The stated starting wage of a job in an ad 
B) The total compensation for a top athlete 
C) The price of a product on Amazon 
D) The price of a box of cereal at a grocery store 
A) The stated starting wage of a job in an ad 
B) The total compensation for a top athlete 
C) The price of a product on Amazon 
D) The price of a box of cereal at a grocery store

Question 14

Which of the following statements is true of pay level?

Accepted Answer

A) Pay level is the same across all organizations for the same job. 
B) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services. 
C) Pay level is directly proportional to labor costs. 
D) Pay level is independent of the number of employees in an organization. 
A) Pay level is the same across all organizations for the same job. 
B) The higher the pay level relative to what competitors pay, the lower the relative costs to provide similar products or services. 
C) Pay level is directly proportional to labor costs. 
D) Pay level is independent of the number of employees in an organization.

Question 15

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 16

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

Accepted Answer

The factors include (1) competition in t

Question 17

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?

Accepted Answer

A) The productivity will reduce. 
B) The productivity will increase. 
C) The productivity will remain the same. 
D) There is not enough information to determine productivity. 
A) The productivity will reduce. 
B) The productivity will increase. 
C) The productivity will remain the same. 
D) There is not enough information to determine productivity.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Wages in labor-intensive industries are generally higher than in technology-intensive industries.

Accepted Answer

A) True 
 B)False

Question 20

The market pay rate is the:

Accepted Answer

A) minimum wage rate set by the Department of Labor. 
B) pay rate at which applicants will deny a job offer. 
C) difference between use value and surplus value. 
D) point at which supply and demand lines cross. 
A) minimum wage rate set by the Department of Labor. 
B) pay rate at which applicants will deny a job offer. 
C) difference between use value and surplus value. 
D) point at which supply and demand lines cross.

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

_____ refers to the average of the array of rates inside an organization.

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

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

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate.This is based on the first labor market theory assumption that:

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

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

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

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

Segmenting sources of labor is a means of reducing labor costs.

If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result?

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

_____ is an example of a bourse.

Which of the following statements is true of pay level?

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

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

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?

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

Wages in labor-intensive industries are generally higher than in technology-intensive industries.

The market pay rate is the:

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

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

_____ refers to the average of the array of rates inside an organization.

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

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

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate.This is based on the first labor market theory assumption that:

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

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

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

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

Segmenting sources of labor is a means of reducing labor costs.

If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result?

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

_____ is an example of a bourse.

Which of the following statements is true of pay level?

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

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

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?

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

Wages in labor-intensive industries are generally higher than in technology-intensive industries.

The market pay rate is the:

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