Chapter 7

which of the following is NOT a reason a company might pay base wages above market competitors

competitor production costs are lower

Which of the following statements is true of pay level

- is directly proportional to labor cost; the more you pay the more it costs - is not the same across all organizations for the same job - The higher the pay level to what competitors pay, the higher their relative costs to provide relative products or services - is not independent of the number of employees in an organization

Wages tend to be the lowest in which of the following industries

Education and Healthcare

segmented labor supply involves all of the following EXCEPT

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

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

Labor Costs

What refers to the average of the array of rates inside an organization?

Pay level

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

Pay level offered by an employer

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

Product demand is responsive to product prices changes

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

Talented individuals have a higher marginal value in a larger organization

What is the additional output associated with the employment of one additional person, with other production factors held constant

The marginal product of labor

What is the best way to establish an account for competing explanations, either statistically of through control groups?

causation

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

compensating differentials

All of the following are advantages of a lead pay-level policy EXCEPT

higher turnover rates

What theory is the most influential in explaining pay-level differences

human capital

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) ________ policy

lag

The pay-level policy that is most likely to reduce pay dissatisfaction is an

lead policy

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

The most common pay policy is an

match policy

The market pay rate is the:

point at which supply and demand lines cross

Evidence shows that in manufacturing, what is positively correlated with hourly wage level?

productivity

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

reservation wage

among pay-mix alternatives, base pay is largest in

security or commitment

Among pay-mix alternatives, the percentage of base pay is highest in

security or commitment policy

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, in referred to as

the marginal product of labor

What puts a lid on the maximum pay level an employer can set

the product market

What sets a maximum pay level an employer can pay

the product market

What is an example of bourse?

total compensation for a top athlete

The assumption of the upward sloping supply curve may NOT hold when

unemployment is low

The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when

unemployment is low

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

variable pay

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as

work/life balance policy

which of the following is a reason(s) a company might pay base wages above market competitors

-Employees are more productive -To increase wage satisfaction -Turnover will be lower -To attract more job applicants

what segmented labor supply involves all of the following

-Hiring from different sources -Paying workers differently who are performing the same work -Employing regulars, part-times, and temps

Which of the following do shape external competitiveness

-Nature of the Demand -Industry Strategy -Level of Product Demand

Which of the following are true of the relationship between employer size and its ability to pay

-Talented individuals have a higher marginal value in a larger organization -Talented people can influence more people with decisions -Talent people leads to more profits

All of the following are advantages of a lead pay-level policy

-reduce vacancy rates -reduced absenteeism -better quality employees

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

-the skill and knowledge required -geography -product competitors and/or market competitors

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 price changes