Multiple Choice - Chapter 7

Front 1

The mix or forms of pay compared to competitors is a part of _____________.

Back 1

competitiveness

Front 2

Which of the following is not a factor explaining differences in pay offered to graduating college students?

Back 2

grades and interview skills

Front 3

_____ refers to the average of the array of rates paid by an employer.

Back 3

Pay level

Front 4

Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:

Back 4

labor costs.

Front 5

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

Back 5

Competitor production costs are lower

Front 6

If Company A and Company B pay the same total compensation for a job, which of the following is most likely true?

Back 6

The pay mix differs

Front 7

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

Back 7

A product on Amazon

Front 8

_____ is an example of a bourse.

Back 8

The total compensation for a top athlete

Front 9

All of the following except the _____ shape external competitiveness.

Back 9

skill level of employees

Front 10

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

Back 10

Pay level offered by an employer

Front 11

The market pay rate is the:

Back 11

point at which supply and demand lines cross.

Front 12

Output associated with hiring an additional person, holding constant other production factors, is referred to as:

Back 12

the marginal product of labor.

Front 13

A small lawn care company has two mowers and four employees. If it hires another employee, how productive will productivity of the fifth employee compare to the current two employees?

Back 13

Less productive

Front 14

Employers continue to hire until marginal revenue of the last hire equals their wage rate because as per the first labor market theory assumption:

Back 14

employers seek to maximize profits.

Front 15

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.

Back 15

marginal revenue; wage rate

Front 16

The assumption of the upward sloping supply curve may not hold when ____.

Back 16

unemployment is low

Front 17

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

Back 17

Higher labor costs for Company A, but not more workers

Front 18

Which theory supports the idea that coal mining should be paid more than office clerical work?

Back 18

Compensating differentials

Front 19

The theory that has the most implications for staffing is _____ theory.

Back 19

efficiency wage

Front 20

Research on efficiency wage theory shows that:

Back 20

more unqualified workers apply

Front 21

_____ theory is typically associated with greater profits.

Back 21

Efficiency wage

Front 22

All of the following are true regarding efficiency wage theory research except __________

Back 22

higher wages reduces profits.

Front 23

Rent sharing is most commonly associated with the _____ theory.

Back 23

efficiency wage

Front 24

__________ theory is the basis for the sorting effect pay strategy has on the composition of a workforce

Back 24

Signaling

Front 25

___________ theory is most useful for explaining variations in pay mix.

Back 25

Efficiency wage

Front 26

Implication of the _____ theory is that pay level affects an employer's ability to recruit.

Back 26

reservation wage

Front 27

In _____ theory, pay is described as noncompensatory.

Back 27

reservation wage

Front 28

If a friend told you they would not accept a job after graduating for less than $50,000 per year, they would be demonstrating the _________ theory.

Back 28

reservation wage

Front 29

A study of graduating college students found they sought jobs with all of the following pay characteristics except ___________

Back 29

variable pay.

Front 30

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

Back 30

human capital

Front 31

_____ sets a maximum pay level an employer can pay.

Back 31

The product market

Front 32

Which of the following factors do not affect an employer's ability to pay high wages?

Back 32

Supply of skilled employees

Front 33

The study referred to in the text on how managers make wage adjustment decisions found:

Back 33

profitability affected the overall pay budget

Front 34

Segmented labor supply involves all of the following except:

Back 34

hiring from different sources and differential pay and benefits for the same work

Front 35

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

Back 35

Education and health care

Front 36

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

Back 36

Talented people prefer to work in larger organizations.

Front 37

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

Back 37

productivity

Front 38

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

Back 38

ability to pay.

Front 39

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

Back 39

The supply of labor is responsive to changes in pay

Front 40

The pay policy associated with increased productivity is the _____ policy.

Back 40

hybrid

Front 41

A pay policy most likely to reduce pay dissatisfaction is ____.

Back 41

lead

Front 42

The most common pay policy is ____.

Back 42

match

Front 43

All of the following are advantages of a lead pay policy except ____.

Back 43

reduced vacancy rates

Front 44

Among pay-mix alternatives, base pay is largest in ____.

Back 44

security or commitment

Front 45

The pay-mix component in which benefits is likely to be largest is ____.

Back 45

work-life balance

Front 46

Which of the following is not a consequence of level of competitiveness of total compensation?

Back 46

Increase organization profitability