Question 1

Rent sharing is most commonly associated with the _____ theory.

Accepted Answer

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

Question 2

_____ 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

Question 3

Paying above the market is an effective competitive strategy.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  level of unemployment had a major effect 
B)  profitability affected the overall pay budget 
C)  managers believed efficiency wage theory 
D)  managers believed higher pay makes supervision easier

Question 5

It is likely that workers act in accordance with reservation wage theory with respect to both wages and benefits.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

Does an above-market wage guarantee a better workforce?

Accepted Answer

The answer of Does an above-market wage guarantee a better...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  internal alignment 
B)  contributions 
C)  competitiveness 
D)  management

Question 10

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

Accepted Answer

A)  Signaling 
B)  Compensating wage differentials 
C)  Efficiency wage 
D)  Human capital

Question 11

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

Accepted Answer

A)  Employees are more productive 
B)  Turnover will be lower 
C)  Competitor production costs are lower 
D)  To attract more job applicants

Question 12

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

Accepted Answer

The answer of How do managers tackle the fact that...

Question 13

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

Accepted Answer

A)  productivity. 
B)  the marginal product of labor. 
C)  incremental productivity. 
D)  the marginal revenue product of labor.

Question 14

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.

Question 15

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 accept a job. 
C) going rate. 
D) point at which supply and demand lines cross.

Question 16

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 17

(p.217In 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

Question 18

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

Accepted Answer

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

Question 19

All of the following except the _____ shape external competitiveness.

Accepted Answer

A) skill level of employees 
B) nature of demand 
C) industry strategy 
D) level of product demand

Question 20

A lead policy may force the employer to increase wages of current employees too,to avoid internal misalignment and murmuring.

Accepted Answer

A) True 
 B)False

Exam 7: Defining Competitiveness

Rent sharing is most commonly associated with the _____ theory.

_____ sets a maximum pay level an employer can pay.

Paying above the market is an effective competitive strategy.

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

It is likely that workers act in accordance with reservation wage theory with respect to both wages and benefits.

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

Does an above-market wage guarantee a better workforce?

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

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

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

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

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

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

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

The market pay rate is the:

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

(p.217In 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.

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

All of the following except the _____ shape external competitiveness.

A lead policy may force the employer to increase wages of current employees too,to avoid internal misalignment and murmuring.