Question 1

Which of the following is,by definition,enforceable in a court of law?

Accepted Answer

An explicit contract is a written or spoken agreement that is enforceable by law. It outlines specific terms, conditions, and obligations that both parties must adhere to, and can be used as evidence if either party fails to meet their obligations. Implicit contracts and relational contracts are based on mutual understandings or expectations, but may be difficult to enforce in court if there is no clear documentation of the agreement. The Peter Principle and Pareto optimal contract theories are not contracts and therefore not enforceable in court.

Question 2

e canonical view of an internal labor market is NOT characterized by which of these stylized properties?

Accepted Answer

The canonical view of an internal labor market is characterized by a price and wage system, but not entirely determined by it. Other factors such as seniority, performance, and training also play a role. Therefore, choice C is incorrect.

Question 3

According to Doeringer and Piore (1971),the supplants the price and wage system of the as the primary means .

Accepted Answer

According to Doeringer and Piore (1971), the internal labor market supplants the price and wage system of the external labor market as the primary means by which scarce resources are allocated within a firm. This means that the internal labor market, with its own set of rules and regulations, becomes the main mechanism for allocating work, wages, and opportunities within the firm. The external labor market is still important for recruiting new workers into the firm, but the internal labor market takes priority in terms of allocating resources.

Question 4

In the working relationship of a boss,B,and a worker,W,which of the following is NOT necessarily true?

Accepted Answer

Real authority involves the ability to make decisions that affect the organization's actions, not just the power to hire or fire. The ability to fire an employee (W) does not solely define real authority for a boss (B); real authority encompasses broader decision-making powers within the organization.

Question 5

Which of the following is a reason the Peter principle's inefficient promotion practices might occur?

Accepted Answer

The answer of Which of the following is a reason...

Question 6

Ports of entry and exit are defined as:

Accepted Answer

Ports of entry and exit are typically used in the context of labor markets, where they refer to the points where workers enter or exit the market, such as when they move from one job to another or from outside the market into the labor force. Options B, C, D, and E do not accurately describe the concept of ports of entry and exit in labor markets.

Question 7

Which of the following is NOT a reason that a firm might make a reputational nvestment?

Accepted Answer

Making a reputational investment is typically a long-term strategy, and reaping immediate rewards is not a common reason for doing so. The other options (A, C, D, and E) are all potential reasons a firm might make a reputational investment.

Question 8

The owner of an asset enjoys _______ ,which are the rights to all uses of an asset in a way not consistent with a prior contract.

Accepted Answer

Residual control rights refer to the owner's ability to exercise control over the use of an asset outside of any prior contractual agreements. This includes the ability to make decisions about the use, transfer, or disposal of the asset. Therefore, A is the correct choice. Option B, formal authority, refers to authority granted through a formal position or title within an organization. Option C, real authority, refers to the legitimate authority granted to an individual based on their role or position within an organization. Option D, the buy decision, refers to the decision to purchase goods or services from an external supplier rather than producing them internally. Option E, the make-or-buy decision, is similar to D in that it involves deciding whether to produce a good or service in-house or outsource it to an external supplier. However, neither D nor E relate directly to the rights of an asset owner.

Question 9

Which of the following is a reason that long-term jobs can only partially be explained by the accumulation of firm-specific human capital?

Accepted Answer

The answer of Which of the following is a reason...

Question 10

Which of the following is an example of the make-or-buy decision?

Accepted Answer

The make-or-buy decision involves choosing between producing a good or service in-house (making) or purchasing it from an external supplier (buying). Option C, where a mother decides whether to babysit her own children (make) or send her children to daycare (buy), is an example of this decision.

Question 11

Which of the following is NOT a true statement about relational contracts?

Accepted Answer

A relational contract may include non-verifiable or subjective information such as trust, loyalty, and cooperation, which cannot be easily verified or enforced. Therefore, option E is the statement that is NOT true about relational contracts.

Quiz 16: Careers and the Employment Relation