ch 7 comp

Which theory supports the idea that coal mining should be paid more than office clerical work? A. Signaling B. Marginal productivity C. Efficiency wage D. Compensating differentials

Compensating differntials

Which of the following is not a reason a company might pay base wages above market competitors? A. Employees are more productive B. Turnover will be lower C. Competitor production costs are lower D. To attract more job applicants

Competitor production costs are lower

All of the following are important factors in defining a market for compensation purposes except: A. skill/knowledge required. B. geography. C. ability to pay. D. product and/or labor market competitors.

ability to pay.

The mix or forms of pay compared to competitors is a part of _____________ A. internal alignment B. contributions C. competitiveness D. management

competitiveness

Employers continue to hire until marginal revenue of the last hire equals their wage rate because as per the first labor market theory assumption: A. markets are competitive. B. pay rates reflect all costs of employment. C. employers seek to maximize profits. D. workers are homogeneous and interchangeable.

employers seek to maximize profits.

Segmented labor supply involves all of the following except: A. hiring from different sources B. paying workers differently who are performing the same work C. hiring from different sources and differential pay and benefits for the same work D. employing regulars, part-timers, and temps

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: A. margins. B. labor costs. C. return on investments. D. fixed costs.

labor costs.

Among pay-mix alternatives, base pay is largest in _____. A. work-life balance B. security or commitment C. performance driven D. market match

security or commitment

All of the following except the _____ shape external competitiveness. A. skill level of employees B. nature of demand C. industry strategy D. level of product demand

skill level of employees

Output associated with hiring an additional person, holding constant other production factors, is referred to as: A. productivity. B. the marginal product of labor. C. incremental productivity. D. the marginal revenue product of labor.

the marginal product of labor.

The pay-mix component in which benefits is likely to be largest is _____. A. work-life balance B. security or commitment C. performance driven D. market watch

work-life balance

Which of the following is an example of a quoted-price? A. A product on e-Bay B. A product on Priceline C. A used car D. A product on Amazon

A product on Amazon

For employers, the implication of the _____ theory is that the elements in your compensation package and total compensation level affect your ability to attract talent and effectively recruit A human capital B reservation wage C. signaling d efficiency

Efficiency

___________ theory is most useful for explaining variations in pay mix. A. Signaling B. Compensating wage differentials C. Efficiency wage D. Human capital

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? A. Less productive B. More productive C. The same D. There is not enough information to determine productivity

Less productive

Which of the following is an example of the demand side of labor? A. Level of pay applicants will accept B. Qualifications of applicants C. Pay level offered by an employer D. Locations of potential employees

Pay level offered by an employer

If Company A and Company B pay the same total compensation for a job, which of the following is most likely true? A. Base pay is same B. Benefits costs are the same C. The pay mix differs D. The pay mix is the same

The pay mix differs

_____ sets a maximum pay level an employer can pay. A. Government legislation B. The product market C. The labor market D. Labor market competitors

The product market

In which of the following would data from labor market competitors be given more weight than product market competitors data? A. Labor costs area a large share of total costs B. Employee skills are specific to the product market C. Product demand is responsive to price changes D. The supply of labor is responsive to changes in pay

The supply of labor is responsive to changes in pay

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. A. demand factor; supply factor B. marginal output; market price C. incremental output; marginal output D. marginal revenue; wage rate

marginal revenue; wage rate

The market pay rate is the: A. minimum wage rate set by the Department of Labor. B. pay rate at which applicants will accept a job. C. going rate. D. point at which supply and demand lines cross.

point at which supply and demand lines cross.

Implication of the _____ theory is that pay level affects an employer's ability to recruit. A. human capital B. reservation wage C. signaling D. efficiency

reservation wage