Question 1

The value of human capital is determined by:

Accepted Answer

A) a special team of experts in each college and university. 
B) a ranking system of the relative value of different types of education to society. 
C) the forces of supply and demand for human capital in the market. 
D) an investment board at the New York Stock Exchange. 
A) a special team of experts in each college and university. 
B) a ranking system of the relative value of different types of education to society. 
C) the forces of supply and demand for human capital in the market. 
D) an investment board at the New York Stock Exchange.

Question 2

Which of the following is a distinction between general and specific human capital?

Accepted Answer

A) General human capital consists of training and education that is valued by different firms,whereas specific human capital is more valuable to the current employer. 
B) General human capital enables workers to earn compensating wage differentials,whereas workers with specific human capital earn the competitive wage rate. 
C) General human capital leads to higher labor costs,whereas specific human capital leads to higher turnover costs. 
D) General human capital leads to self-selection on the basis of risk preference,whereas specific human capital leads to the adverse selection problem. 
A) General human capital consists of training and education that is valued by different firms,whereas specific human capital is more valuable to the current employer. 
B) General human capital enables workers to earn compensating wage differentials,whereas workers with specific human capital earn the competitive wage rate. 
C) General human capital leads to higher labor costs,whereas specific human capital leads to higher turnover costs. 
D) General human capital leads to self-selection on the basis of risk preference,whereas specific human capital leads to the adverse selection problem.

Question 3

To help with motivation,long-term productivity,and retention,firms with internal labor markets tend to offer all of the following except

Accepted Answer

A) efficiency wages. 
B) benchmark competitive wages. 
C) pay based on job seniority. 
D) internally based promotion systems. 
A) efficiency wages. 
B) benchmark competitive wages. 
C) pay based on job seniority. 
D) internally based promotion systems.

Question 4

In the benchmark competitive case,the firm will expand the hiring of employees until the marginal revenue product is:

Accepted Answer

A) less than the market wage rate. 
B) equal to the market wage rate. 
C) greater than the market wage rate. 
D) the square of the market wage rate. 
A) less than the market wage rate. 
B) equal to the market wage rate. 
C) greater than the market wage rate. 
D) the square of the market wage rate.

Question 5

When a company is very dependent on firm-specific human capital,it makes sense for the company to:

Accepted Answer

A) use only benchmark competitive wage rates. 
B) offer compensating differentials for unpleasant jobs. 
C) develop programs for sending employees to the local university. 
D) create an extensive internal labor system for career advancement. 
A) use only benchmark competitive wage rates. 
B) offer compensating differentials for unpleasant jobs. 
C) develop programs for sending employees to the local university. 
D) create an extensive internal labor system for career advancement.

Question 6

In an internal labor market,employees often spend too much time lobbying for promotions or preferred job assignments.These are referred to as:

Accepted Answer

A) administrative costs. 
B) market costs. 
C) influence costs. 
D) human capital costs. 
A) administrative costs. 
B) market costs. 
C) influence costs. 
D) human capital costs.

Question 7

A primary reason for the use of implicit contracts in internal labor markets is to:

Accepted Answer

A) establish long-term employment relationships. 
B) encourage employees to participate in decision making. 
C) reduce the costs associated with formalizing contracts. 
D) reduce the training and recruitment expenses. 
A) establish long-term employment relationships. 
B) encourage employees to participate in decision making. 
C) reduce the costs associated with formalizing contracts. 
D) reduce the training and recruitment expenses.

The value of human capital is determined by:

Which of the following is a distinction between general and specific human capital?

To help with motivation,long-term productivity,and retention,firms with internal labor markets tend to offer all of the following except

In the benchmark competitive case,the firm will expand the hiring of employees until the marginal revenue product is:

When a company is very dependent on firm-specific human capital,it makes sense for the company to:

In an internal labor market,employees often spend too much time lobbying for promotions or preferred job assignments.These are referred to as:

A primary reason for the use of implicit contracts in internal labor markets is to:

Introduction

Economists View of Behavior

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters

Exam 14: Attracting and Retaining Qualified Employees

The value of human capital is determined by:

Which of the following is a distinction between general and specific human capital?

To help with motivation,long-term productivity,and retention,firms with internal labor markets tend to offer all of the following except

In the benchmark competitive case,the firm will expand the hiring of employees until the marginal revenue product is:

When a company is very dependent on firm-specific human capital,it makes sense for the company to:

In an internal labor market,employees often spend too much time lobbying for promotions or preferred job assignments.These are referred to as:

A primary reason for the use of implicit contracts in internal labor markets is to:

Introduction

Economists View of Behavior

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters