Question 1

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

Accepted Answer

A quoted-price is a fixed price at which a product is offered for sale, like on Amazon where products are listed with specific prices.

Question 2

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

Accepted Answer

Efficiency wage theory suggests that paying employees higher wages than market rates can result in increased productivity, reduced turnover and absences, and improved quality of hires. This theory has significant implications for staffing as it suggests that investing in higher wages can bring long-term benefits to organizations by attracting and retaining high-performing employees.

Question 3

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

Accepted Answer

Pay level refers to the average of the array of rates paid by an employer, indicating the overall compensation structure.

Question 4

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

Accepted Answer

The output associated with hiring an additional person while holding constant other production factors is specifically referred to as the marginal product of labor, as it shows the additional output that is produced by the additional worker. Choices A, C, and D are not as specific to this concept.

Question 5

_____ is an example of a bourse.

Accepted Answer

A bourse is a stock exchange or a market where securities such as stocks and bonds are traded. The total compensation for a top athlete can be considered a security that is traded in the sports market, making it an example of a bourse. The other options are not related to securities trading or stock exchanges.

Question 6

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

Accepted Answer

Compensating differentials theory argues that jobs that involve unpleasant or risky tasks tend to pay more in order to compensate for the negative aspects of the job. Coal mining, being a hazardous and physically demanding job, is considered to be compensated with higher pay, when compared to office clerical work, which is generally seen as low-risk and sedentary.

Question 7

The market pay rate is the:

Accepted Answer

The answer of The market pay rate is the:
...

Question 8

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

Accepted Answer

Grades and interview skills are personal attributes of the student, not external factors like the location of the company, type of work, or industry, which are more likely to influence pay differences.

Question 9

(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

The answer of (p.217In a hiring situation,considering that other potential...

Question 10

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

Accepted Answer

The answer of Which of the following is an example...

Question 11

Research on efficiency wage theory shows that:

Accepted Answer

Efficiency wage theory suggests that paying workers above the market wage can increase productivity and reduce turnover, leading to more qualified workers applying for jobs.

Question 12

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

Accepted Answer

If both companies are paying the same total compensation for a job, it is possible that the pay mix differs. For example, Company A might offer a higher base salary with lower benefits, while Company B might offer a lower base salary with more generous benefits. Therefore, C is the most likely option. It is, however, not necessarily true that the base pay or benefits costs are the same.

Question 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?

Accepted Answer

Adding another employee does not necessarily increase productivity, as there are only two mowers available. With four employees, each employee has a specific amount of work to do based on the number of available mowers. Adding another employee does not increase the number of mowers, and will likely result in less work for each employee.

Question 14

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

If competitors match the pay increase, Company A will face higher labor costs without gaining a competitive advantage in attracting more workers.

Question 15

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

Accepted Answer

The mix or forms of pay compared to competitors is a part of ensuring that the organization's pay competitiveness is aligned with the market, which falls under the category of competitiveness in compensation management. Internal alignment focuses on the consistency of pay within the organization, while contributions and management are not directly related to pay mix or forms compared to competitors.

Question 16

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

Accepted Answer

The statement "Employers continue to hire until marginal revenue of the last hire equals their wage rate" is consistent with the assumption that employers seek to maximize profits. This is one of the key assumptions of labor market theory, which helps to explain how supply and demand for labor interact to determine wages and employment levels. The other choices (A, B, and D) are also important assumptions of labor market theory, but they do not directly address the reasoning behind why employers hire up to the point where marginal revenue equals wage rates.

Question 17

All of the following except the _____ shape external competitiveness.

Accepted Answer

The skill level of employees is more related to internal factors such as employee development and compensation rather than external competitiveness.

Question 18

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

Accepted Answer

The upward sloping supply curve assumes that as wages increase, firms are willing to produce more output. However, if unemployment is low, there may be a shortage of workers, causing firms to struggle to produce more output with the same amount of labor. In this case, the supply curve may not slope upward.

Question 19

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

Accepted Answer

Paying base wages above market competitors would not be a logical choice if competitor production costs are lower, as this would put the company at a competitive disadvantage. The other options listed (higher productivity, lower turnover, and attracting more job applicants) could be valid reasons for paying higher wages.

Question 20

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

Accepted Answer

Higher pay levels lead to higher labor costs since employees are being paid more for their work. This is one of the main factors that should be considered when deciding on pay levels as it directly impacts the company's expenses. The other options are not necessarily affected by pay level decisions.

Quiz 7: Defining Competitiveness