Exam 2 CA - CH.7-14

12. Joe is an employee at an organization. He can produce three widgets every hour. The firm can sell each widget for $4. According to the first rule of labor markets, given that the firm wants to maximize profits, it will never pay more (in terms of wages and benefits) to Joe than...

$12/Hour

5. According to your text, dramatic rises in executive pay relative to that of an average worker's wage, in the United States, started in about...

1980s

9. When an organization is required to offer a benefit by law, by definition it CANNOT be considered...

A discretionary benefit

6. In the context of insurance, _____________ refers to the problem in which insurance buyers have more information about whether they are high-risk or low-risk than the insurance company does. This creates an asymmetric information problem for the insurance company because buyers who are high-risk tend to want to buy more insurance, without letting the insurance company know about their higher risk.

Adverse Selection

4. A _______ is a person responsible for running an organization, although the exact nature of the role varies depending on the organization. They run companies or government agencies. They create plans to help their organizations grow. Becoming one usually takes years of promotions and hard work since the qualifications of this role needs hard working individuals with years of experience in multiple facets of the business

Business Executive

2. Which of the following laws is best described as follows: includes Title VII, which prohibits discrimination in employment on the basis of race, gender, national origin, religion, or sexual orientation

Civil Rights Act of 1964

11. ____ is a provision under which money that's already been paid out must be returned to the employer or the firm. This is a special contractual clause, used mostly in financial firms, for money paid for services to be returned under special circumstances or events as stated in the contract. These involve a penalty, making them different from simple repayments or refunds

Clawback

12. In insurance, one method of cost sharing is ____, which means that the insurance company covers a certain percentage of the cost. For example, insurance might pay for 80% of the costs of repairing a home after a fire, but the homeowner would pay the other 20%.

Coinsurance

5. In the United States, Health insurance policies often have a _____, in which the policyholder must pay a small amount. For example, a person might have to pay $20 for each doctor visit, and the insurance company would cover the rest

Copayment

8. In most labor markets, as the annual salary for a given job goes up, quantity demanded by firms _____ and quantity supplied _____

Decreases, Increases

7. In the United States, Insurance policies often have _____, which is an amount that the insurance policyholder must pay out of his or her own pocket before the insurance coverage starts paying

Deductibles

11. In the context of insurance, the idea behind copayments, coinsurance, and deductibles, are that they...

Discourage Moral Hazard

12. Google offers shuttle services to help employees get to and from work every day. In this example, Google's shuttle services are an example of...

Discretionary benefit

3. In the United States, social security and medicare taxes, unemployment insurance, workers compensation, disability insurance, and family medical leave, are all considered...

Entree Benefits

2. When considering labor markets, at _______, the quantity supplied of labor and the quantity demanded are equal.

Equilibrium

6. Pretend nurses are currently being paid $75,000/year to work as a nurse in Chicago. 50,000 nurses are trying to get jobs in Chicago. However, at that salary, there are only 40,000 nurse jobs being offered. According to economic theory, the most likely outcome is that...

Excess supply results due to the above-equilibrium salary, resulting in an incentive for employers to offer lower wages; salaries will move down towards the equilibrium

3. Which of the following laws is best described as follows: establishes the minimum wage, limits on child labor, and rules requiring payment of overtime pay for those in jobs that are paid by the hour and exceed 40 hours per week

Fair Labor Standards Act of 1938

1. According to your text, although our ability to use technology is increasing, most executives report that they do not access business content via their devices during the weekends

False

1. Organizations CANNOT reward employees based on meeting various goals in an organization results based wellness program

False

1. The federal minimum wage always requires nonexempt employees to be paid 300% of the regular pay rate for any hours beyond 40 worked during the same week.

False

10. In cases where an employee is subject to both the state and federal minimum wage laws, the organization can decide which to pay

False

10. Joe is an executive at an organization. As part of being an executive, he gets a special parking space at the front of the building. In this situation, in the context of executive compensation, we would describe this special parking space as a Commission-Based Pay Plan

False

11. By definition, organization wellness programs are only allowed to address mental and spiritual health

False

11. Job Rotation allows employees to decide what their work hours will be. Employees are generally expected to work a certain number of hours per week but have some discretion as to when they arrive at work and when they leave for the day.

False

11. The Taft Hartley Act of 1947 established the minimum wage, limits on child labor, and rules requiring payment of overtime pay for those in jobs that are paid by the hour and exceed 40 hours per week

False

12. Briefly, the Taft Hartley Act of 1947 allows employees to take up to 12 weeks of unpaid leave per year for family reasons, including birth or family illness

False

12. In general, contingent employees are given the same organizational compensation benefits as full-time employees

False

13. An executive has a driver that picks them up and takes them to and from work. In the compensation scheme, we would call this a Short Term Incentive

False

13. As discussed in your book, compared to the 20th century of United States history, involvement in labor unions has been steadily increasing

False

14. Job Enrichment is a scheduling option that allows two individuals to split the tasks, responsibilities, and work hours of one 40-hour-per-week job. Though used less frequently than flextime and the compressed workweek, this option can also provide employees with job flexibility. The primary benefit to the company is that it gets "two for the price of one"—the company can draw on two sets of skills and abilities to accomplish one set of job objectives.

False

15. By law in every state in the United States, part-time employees must receive the exact same bonuses and perks offered to full-time employees

False

16. As discussed in your book, in today's United States society, the most likely situation is for someone to only have one job their entire life until they retire

False

16. The Lilly Ledbetter Fair Pay Act of 2009 established procedures for establishing a union that firms are obligated to follow and set up the National Labor Relations Board for deciding disputes

False

2. Social Security, in the United States, is an example of a discretionary benefit offered by organizations

False

2. Surface-level Diversity includes characteristics that may be concealed or revealed at discretion by individuals who possess them, such as sexual orientation.

False

3. Joe is an executive at an organization. As part of being an executive, he gets a special parking space at the front of the building. In this situation, in the context of executive compensation, we would describe this special parking space as an Hourly Wage

False

4. Dental Benefits, in the United States, are not considered Discretionary since employers are legally required to offer them

False

4. The federal minimum wage provisions are contained in the Equal Pay Act of 1963.

False

5. According to current United States law, it is illegal for organizations to offer a compressed workweek where employees work the traditional 40 hours, but fit those hours into a shorter workweek (e.g., four 10-hour days)

False

5. As detailed in your text, pet insurance is one of the most commonly sought discretionary benefit by US workers

False

5. In the United States, it is illegal for a state to impose its own minimum wage laws - only the federal government can do so

False

6. As detailed in your book, there has never been a gap between compensation and productivity

False

6. Executive Compensation is typically just composed of a high salary as the main payment for services

False

7. Typically, survey research is much more costly than laboratory and field experiments

False

8. In general, using job rotation for employees tends to decrease training costs

False

9. Hidden Diversity usually is in the form of characteristics of individuals that are readily visible including, but not limited to, age, body size, visible disabilities, race or sex

False

9. The Family and Medical Leave Act of 1993 created the Occupational Safety and Health Administration (OSHA), which protects workers from physical harm in the workplace

False

6. Which of the following laws is best described as follows: allows employees to take up to 12 weeks of unpaid leave per year for family reasons, including birth or family illness

Family and Medical Leave Act of 1993

9. In general, if the wage rate increases, employers will want to hire ____ employees. If the wages and salaries decrease, employers are more likely to hire _____ employees.

Fewer; More

10. In a perfectly competitive labor market...

Firms can hire all the labor they wish at the going market wage

3. Raja's boss allows Raja to work a compressed work week - where Raja is able to complete all their work in 4 days, rather than the traditional 5. Raja's compressed workweek is an example of a...

Flexible work arrangement

5. In general, as the demand for a specific good or service increases, the demand for labor...

Increases

4. The horizontal expansion of a job, increasing the number and variety of tasks that a person performs, is called _______. Increasing task diversity can enhance job satisfaction, particularly when the job is mundane and repetitive in nature.

Job enlargement

6. ______ is the vertical expansion of an employee's job. This attempts to increase job depth by providing the employee with more autonomy, responsibility, and decision-making authority. The employee can use a variety of talents and skills and has more control over the planning, execution, and evaluation of the required tasks.

Job enrichment

9. _______, as popularized by Scottish economist Adam Smith and British philosopher Herbert Spencer, describes an economic philosophy that markets function best when left to their own devices, i.e., without, or with minimal, government involvement or regulations.

Laissez-faire

2. Ultimately, in executive compensation, when executives are granted long-term incentives they are usually also granted stock-based compensation. Why is this so?

Long-term incentives are implemented to reward executives for maximizing shareholder value. Executives benefit by being able to profit from the share price increase

4. In Economics terms, The _______ is the cost to the firm of hiring one more worker.

Marginal Cost of Labor

3. ________ is the additional output a firm can produce by adding one more worker to the production process.

Marginal Product

1. In the United States, the ______ is a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate in most situations

Minimum Wage

13. Joe did not have car insurance. He made sure he drove extremely carefully because he was worried about being pulled over without car insurance. Today, Joe got car insurance. Joe immediately started driving faster and more recklessly. In this case, we can conclude that Joe is engaging in _______ in regards to now having insurance.

Moral Hazard

8. Joe did not have car insurance. He made sure he drove extremely carefully because he was worried about being pulled over without car insurance. Today, Joe got car insurance. Joe immediately started driving faster and more recklessly. In this case, we can conclude that Joe is engaging in _______ in regards to now having insurance.

Moral Hazard

14. Which of the following laws is best described as follows: creates the occupational safety and health administration (OSHA), which protects workers from physical harm in the workplace

Occupational Health and Safety Act of 1970

9. In general, the purpose of Medicare is to provide health services to...

People of sixty-five years old

8. Susan is a CEO of a large corporation. As part of her compensation package, she receives the ability to use the company airplane for personal travel. In this example, what Susan is receiving would best be termed a...

Perquisite

17. Which of the following laws is best described as follows: prohibits discrimination against women in the workplace who are planning to get pregnant or who are returning to work after pregnancy

Pregnancy Discrimination Act of 1978

1. Generally, households or firms with insurance make regular payments, called _____. The insurance company prices these items based on the probability of certain events occurring among a pool of people.

Premiums

7. _________ in labor markets prevent people from earning income higher than a certain amount, while _____ in labor markets are attempts to create a minimum income.

Price Ceilings; Price Floor

8. At its core, the term "discretionary benefits" means that these benefits are not...

Required by law for the employer to offer

7. As discussed in your text, the Securities Exchange Act of 1934 was largely created in response to the...

Stock Market Crash of 1929

4. When Computers with word processing capabilities were introduced (e.g., Microsoft Word), organizations realized that they did not need to hire as many typists to create the same amount of output. This shifted the demand curve for typists. In this situation, technology is acting as a ______.

Substitute

1. One of the pieces of a good theory is that it has generalizability. In this context, what does generalizability generally mean?

That the theory applies to a wide range of situations or organizations

11. In theory, the market wage rate is determined through...

The Interaction of Supply and Demand in the labor market

15. In general, a monopsony, in the context of labor markets, means that...

There is only one employer in the given labor market

8. When considering experiments and studies, what is the main purpose of Controls, used in this context?

To minimize irrelevant or contaminating influences beyond what is being studied

1. Joe is an executive at an organization. As part of being an executive, he gets a special parking space at the front of the building. In this situation, in the context of executive compensation, we would describe this special parking space as a Perquisite (Perk)

True

10. As described in your text, in general, very few employees actually take advantage of tuition assistance programs as a discretionary benefit, despite many organizations offering some type of tuition reimbursement benefit

True

10. Flextime allows employees to decide what their work hours will be. Employees are generally expected to work a certain number of hours per week but have some discretion as to when they arrive at work and when they leave for the day.

True

10. The "Wagner Act" of 1935 established procedures for establishing a union that firms are obligated to follow and set up the National Labor Relations Board for deciding disputes

True

12. One of the major threats for special retirement plans, usually offered to executives, is that they are not protected by federal tax and pension rules, nor secured by a trust

True

13. The Fair Labor Standards Act of 1938 established the minimum wage, limits on child labor, and rules requiring payment of overtime pay for those in jobs that are paid by the hour and exceed 40 hours per week

True

13. Vision insurance offered by a company would be considered a discretionary employee benefit

True

14. An executive has a driver that picks them up and takes them to and from work. In the compensation scheme, we would call this a Perquisite (Perk)

True

17. Job sharing is a scheduling option that allows two individuals to split the tasks, responsibilities, and work hours of one 40-hour-per-week job. Though used less frequently than flextime and the compressed workweek, this option can also provide employees with job flexibility. The primary benefit to the company is that it gets "two for the price of one"—the company can draw on two sets of skills and abilities to accomplish one set of job objectives.

True

2. A Halloween Shop is opening in town. The organization will only be open near the holiday of Halloween - that is, they will open in September and close at the end of October. Therefore the organization is most likely to use Contingent Employees.

True

3. One of the arguments for organizations offering tuition assistance is that companies are able to recruit employees with high potential who are already dedicated to growth and learning

True

3. The federal minimum wage always requires nonexempt employees to be paid 150% of the regular pay rate for any hours beyond 40 worked during the same week.

True

5. Briefly, the Family and Medical Leave Act of 1993 allows employees to take up to 12 weeks of unpaid leave per year for family reasons, including birth or family illness

True

7. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

True

7. In general, a hierarchical path has entry-level positions followed by promotions up the chain with broader responsibilities; a flat structure model focuses on horizontal growth, expanding knowledge, and getting better at core competencies

True

7. The basic premise of organizational wellness programs, particularly ones with exercise programs, is that they can decrease healthcare costs and sick leave, while increasing productivity.

True

8. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA).

True

9. By definition, contingent employees are only employees for a limited time

True

10. In the United States, in general, which of these would NOT be considered a legal required benefit?

Tuition Reimbursement

2. In this type of insurance, employers pay an amount which goes into a fund to pay benefits to workers who lose their jobs and do not find new jobs, for a period of time, usually up to six months.

Unemployment insurance

13. In general, the supply for labor curve is an ______ because if wages for a particular type of labor increase in a particular labor market, people with appropriate skills may change jobs, and vacancies will attract people from outside the geographic area.

Upward sloping function of the wage rate

4. In this type of insurance, employers are required by law to pay a small percentage of the salaries that they pay into funds, typically run at the state level, that pay benefits to workers who suffer an injury on the job

Worker's Compensation Insurance

6. ______ is any workplace health promotion activity or organizational policy designed to support healthy behavior in the workplace and to improve health outcomes. It often comprises such activities as health education, medical screenings, weight management programs, and on site fitness programs or facilities.

Workplace Wellness