Question 1

How do managers tackle the fact that neither marginal product nor marginal revenue is directly measurable?

Accepted Answer

Managers need some measure that reflects

Question 2

In a labor market,the demand side focuses on the actions of the employers.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  margins. 
B)  labor costs. 
C)  return on investments. 
D)  fixed costs. 
A)  margins. 
B)  labor costs. 
C)  return on investments. 
D)  fixed costs.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Considering the third assumption of labor market theory,although some firms find lowering the job requirements and hiring less-skilled workers a better choice than raising wages,this choice incurs:

Accepted Answer

A)  lower marginal productivity. 
B)  increased training costs. 
C)  decreased marginal output. 
D)  higher recruitment costs. 
A)  lower marginal productivity. 
B)  increased training costs. 
C)  decreased marginal output. 
D)  higher recruitment costs.

Question 8

Talented individuals have a higher marginal value in larger organizations.

Accepted Answer

A) True 
 B)False

Question 9

_____ sets a maximum pay level an employer can pay.

Accepted Answer

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

Question 10

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

Accepted Answer

A)  retention 
B)  productivity 
C)  job satisfaction 
D)  total profit 
A)  retention 
B)  productivity 
C)  job satisfaction 
D)  total profit

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  reduced training time 
B)  reduced turnover 
C)  reduced absenteeism 
D)  higher financial performance 
A)  reduced training time 
B)  reduced turnover 
C)  reduced absenteeism 
D)  higher financial performance

Question 15

External competitiveness is primarily determined by the impact of government regulations on the firm or industry.

Accepted Answer

A) True 
 B)False

Question 16

An individual manager could be a factor affecting an employer's external competitiveness.

Accepted Answer

A) True 
 B)False

Question 17

The first assumption of labor market theories is that employers always seek to maximize penetration.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  Increase probability of union-free status 
B)  Increase organization profitability 
C)  Reduce voluntary turnover 
D)  Reduce pay-related work stoppages 
A)  Increase probability of union-free status 
B)  Increase organization profitability 
C)  Reduce voluntary turnover 
D)  Reduce pay-related work stoppages

Question 19

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?

Accepted Answer

A)  Higher labor costs for Company A,but not more workers 
B)  Company A will hire the needed workers at the higher wage rate 
C)  Competitors will lose employees to Company A 
D)  Company A will hire higher quality workers 
A)  Higher labor costs for Company A,but not more workers 
B)  Company A will hire the needed workers at the higher wage rate 
C)  Competitors will lose employees to Company A 
D)  Company A will hire higher quality workers

Question 20

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

Accepted Answer

A)  wages are low 
B)  wages are high 
C)  unemployment is low 
D)  unemployment is high 
A)  wages are low 
B)  wages are high 
C)  unemployment is low 
D)  unemployment is high

How do managers tackle the fact that neither marginal product nor marginal revenue is directly measurable?

In a labor market,the demand side focuses on the actions of the employers.

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

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

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

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

Considering the third assumption of labor market theory,although some firms find lowering the job requirements and hiring less-skilled workers a better choice than raising wages,this choice incurs:

Talented individuals have a higher marginal value in larger organizations.

_____ sets a maximum pay level an employer can pay.

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

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

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.

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

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

External competitiveness is primarily determined by the impact of government regulations on the firm or industry.

An individual manager could be a factor affecting an employer's external competitiveness.

The first assumption of labor market theories is that employers always seek to maximize penetration.

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

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?

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

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Designing Pay Levels, mix, and Pay Structures

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

How do managers tackle the fact that neither marginal product nor marginal revenue is directly measurable?

In a labor market,the demand side focuses on the actions of the employers.

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

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

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

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

Considering the third assumption of labor market theory,although some firms find lowering the job requirements and hiring less-skilled workers a better choice than raising wages,this choice incurs:

Talented individuals have a higher marginal value in larger organizations.

_____ sets a maximum pay level an employer can pay.

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

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

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.

In determining the compensation strategy,a major strategic decision is whether to mirror what competitors are paying.

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

External competitiveness is primarily determined by the impact of government regulations on the firm or industry.

An individual manager could be a factor affecting an employer's external competitiveness.

The first assumption of labor market theories is that employers always seek to maximize penetration.

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

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?

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

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Designing Pay Levels, mix, and Pay Structures

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.