Chapter 7 HR

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

A product on Amazon

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

Competitor production costs are lower

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?

Higher labor costs for Company A, but not more workers

Which of the following is not true of the relationship between employer size and its ability to pay?

Talented people prefer to work in larger organizations

A study of graduating college students found they sought jobs with all of the following pay characteristics except ___________

Variable Pay

All of the following are important factors in defining a market for compensation purposes except:

ability to pay.

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

competitiveness

Rent sharing is most commonly associated with the _____ theory.

efficiency wage

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

efficiency wage

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

employers seek to maximize profits.

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

grades and interview skills

All of the following are true regarding efficiency wage theory research except __________

higher wages reduces profits

Segmented labor supply involves all of the following except:

hiring from different sources and differential pay and benefits for the same work

The _____ theory is the most influential in explaining pay-level differences.

human capital

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

hybrid

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

reduced vacancy rates

If a friend told you they would not accept a job after graduating for less than $50,000 per year, they would be demonstrating the _________ theory.

reservation wage

Implication of the _____ theory is that pay level affects an employer's ability to recruit.

reservation wage

In _____ theory, pay is described as noncompensatory.

reservation wage

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

security or commitment

All of the following except the _____ shape external competitiveness.

skill level of employees

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

the marginal product of labor.

____ is an example of a bourse.

the total compensation for a top athlete

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

unemployment is low

The pay-mix component in which benefits is likely to be largest is ____.

work-life balance

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

Compensating differentials

Wages tend to be low in which of the following industries?

Education and health care

_____ theory is typically associated with greater profits.

Efficiency wage

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?

Less productive

The most common pay policy is ____.

Match

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

Pay level

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

Pay level offered by an employer

__________ theory is the basis for the sorting effect pay strategy has on the composition of a workforce

Signaling

Which of the following factors do not affect an employer's ability to pay high wages?

Supply of skilled employees

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

The pay mix differs

_____ sets a maximum pay level an employer can pay.

The product market

In which of the following would data from labor market competitors be given more weight than product market competitors data?

The supply of labor is responsive to changes in pay

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

increase organization profitability

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

labor costs

A pay policy most likely to reduce pay dissatisfaction is ____.

lead

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.

marginal revenue; wage rate

Research on efficiency wage theory shows that:

more unqualified workers apply

The market pay rate is the:

point at which supply and demand lines cross.

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

productivity

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

profitability affected the overall pay budget