Archives: Quiz

The first step in strategic planning of a firm involves establishing a mission, vision, and values for the firm. a. True b. False No citations are issued in connection with a consultation; however, the consultant’s files may be used to […]

____ helps eliminate the obsession with grades and, instead, encourages employees to move to jobs they can develop in their careers and add value to the organization. a. Red circling b. Broadbanding c. Pay ranging d. Factor comparison Bargaining on […]

Trade schools can be a good source of applicants even for high level positions within organizations. a. True b. False Employees desiring domestic companion benefits typically must sign: a. a writ of Common Domestic Marriage. b. an Affidavit of Domestic […]

Because the appraisal interview is for developmental purposes, the interviewer rather than the employee should spend the majority of the time talking. a. True b. False Job analysis is called the cornerstone of HRM because: a. the information obtained is […]

Discipline programs designed to motivate an employee to correct his or her misconduct voluntarily are known as: a. hot-stove programs. b. progressive discipline programs. c. respect-discipline programs. d. step help programs. English is almost universally accepted as the language for […]

In the field of labor relations, unfair labor practices (ULPs) involve violations of safety practices. a. True b. False When the organization pays wages that are relatively equal to that of other employers for similar work, it is the basis […]

The right of privacy, which is recognized by law and legal commentary, includes the general principle of personal autonomy and largely involves an individual’s right to be left alone. a. True b. False Basic skills training includes all of the […]

Penalties for violation of safety rules by employees are usually stated in the: a. employee handbook. b. appointment letter of the employees. c. Federal Register. d. Occupational Safety and Health Act (OSHA) handbook. The job title: a. is of psychological […]

Mediation is always a formal process that results in compromise. a. True b. False External labor markets are those in which workers are hired into entry-level jobs and higher level jobs are filled from within. a. True b. False Answer: […]

Criterion deficiency occurs when performance standards focus on a single criterion and exclude other important but less quantifiable performance dimensions. a. True b. False Standard hour plans are popular in service departments in automobile dealerships. a. True b. False Answer: […]

Some surveys have shown that _____ is the most popular means of e-recruiting. a. social networking b. online mail c. text messaging d. fax Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce […]

The first step in choosing an HRIS is for the HR personnel to: a. evaluate the most time-consuming tasks. b. examine the user-friendliness of the software. c. calculate the cost savings in using an HRIS. d. calculate the time required […]

Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price indexare known as: a. maintenance clauses. b. escalator clauses. c. roll-up clauses. d. guarantee clauses. If a manager rates […]

Psychological principles of learning refer to the characteristics of training programs that help employees grasp new material, make sense of it in their own lives, and transfer it back to their jobs. a. True b. False Trade schools can be […]

Transnational teams tend to be: a. focused on projects that span multiple countries. b. comprised of members with generalized skills. c. homogenous. d. comprised of members from the same region. €The two most common purposes of performance management programs are […]

Some organizations believe that appraisals are useful : a. as a warning to inexperienced employees. b. only for highly effective or ineffective employees. c. only for veteran employees. d. for employees nearing retirement. Behavior modeling is based on the principle […]

A natural monopoly exists when a. a monopolist produces a product, the main component of which is a natural resource. b. economies of scale are so large that only one firm can survive and achieve low unit costs. c. a […]

As the marginal physical product of U.S. workers _________________, the marginal cost of goods produced in the U.S. ______________ and unit costs _____________.This makes American goods ________________ competitive in the global marketplace. a. rises; falls; fall; less b. falls; falls; […]

As long as the demand curve lies above the marginal revenue curve for a monopolist, it will charge a price for its product that is a. above total cost. b. below marginal cost. c. above marginal cost. d. above average […]

Price discrimination was deemed illegal by the a. Sherman Act. b. Wheeler-Lea Act. c. Clayton Act. d. Federal Trade Commission Act. e. none of the above Exhibit 28-7 As the firm increases employment from 50 to 60 workers, by how […]

Consider two labor markets, C and D. Wages in labor market D fall. This could be due to a. the marginal revenue curve in the product market (that employees in labor market D supply with goods) shifts to the left. […]

In which market structure is the interdependence of firms a key characteristic? a. perfect competition b. monopolistic competition c. oligopoly d. monopoly Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price […]

If two firms that form a cartel agreement are in a prisoner’s dilemma game, then a. both firms will have an incentive to break the agreement. b. only one firm will have an incentive to break the agreement. c. both […]

The longer the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand. a. lower, price b. lower, income c. higher, price d. higher, income The demand for farm goods is income inelastic […]

A good provides __________ and a bad provides __________. a. utility; satisfaction b. disutility; utility c. dissatisfaction; satisfaction d. utility; disutility e. satisfaction; utility The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A […]

Exhibit 27-1 What dollar value goes in blank (D)? a. $12 b. $28 c. $36 d. $18 A perfectly competitive firm that wants to maximize profits or minimize losses will produce in the short run as long as a. customers […]

Carlos can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. The opportunity cost of one unit of X for Carlos is a. 1 unit of Y. b. 2 units of […]

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities. a. True b. False The answer is: “rational ignorance.” What is the question? a. Why do special interest groups lobby politicians? […]

Exhibit 1-2 According to the data provided in this table, what is the slope of the line between points A and B, if these data were graphed with X on the horizontal axis and Y on the vertical axis? a. […]

Exhibit 34-1 The opportunity cost of one unit of Y in country B is a. 0.5 units of X. b. 1 unit of X. c. 2 units of X. d. 20 units of X. A firm produces the quantity of […]

A person goes into a store and buys a computer for $1,210. In this case, price is acting as a a. resource. b. good. c. rationing device. d. capital instrument. e. factor of production. Which of the following statements is […]

The single-price monopolist produces the quantity of output at which marginal cost equals marginal revenue and charges a price that is greater than marginal revenue. a. True b. False If new legislation allowed patients to sue their health-maintenance organization (HMO), […]

If there is a negative externality, and the market output is 100 units more than the socially optimal output, then it follows that a. the external costs associated with the negative externality are greater than the marginal private costs. b. […]

The additional revenue generated by a firm by hiring one more unit of a factor of production is the a. MFC. b. MC. c. MR. d. MRP. e. MPP. In 2014 a woman won a $100 million lottery. Her income […]

Marginal cost regulatory pricing turns out to be the same as output regulation (for a natural monopoly firm) if the output level set by government is the a. amount at which marginal cost equals average total cost. b. resource-allocative efficient […]

Exhibit 28-6 L and W are the equilibrium quantity of labor employed and the wage rate respectively. A person arguing that a worker is being exploited if she is paid less than the value of her marginal product would say […]

The producers of good X are earning (positive) economic profits and the producers of good Z are receiving economic losses. A likely consequence is that (in time) resources will be shifted out of producing good Z and into producing good […]

The __________ one’s income, the __________ one’s budget constraint. a. smaller; further away from the origin b. larger; closer to the origin c. larger; further away from the origin d. smaller; steeper the slope of e. larger; steeper the slope […]

A profit-maximizing monopolistic competitive firm that produces at the level of output where MR = MC will set the price at a. $100 per unit. b. $90 per unit. c. $80 per unit. d. $60 per unit. e. $50 per […]

Exhibit 23-7 At the profit-maximizing output level, average total cost is a. $2.00. b. $4.50. c. $5.00. d. $6.00. e. This cannot be determined based on the information provided. As firms exit an industry, the industry supply curve shifts __________ […]

A nonexcludable public good is characterized by nonrivalry in a. production and nonexcludability. b. consumption and rivalry in production. c. consumption and excludability. d. consumption and nonexcludability. e. none of the above When the government imposes taxes on firms that […]

Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by a. lower prices and if demand is inelastic, lower prices mean lower revenues. b. higher prices and if demand is elastic, higher […]

Exhibit 23-7 At the profit-maximizing level of output, marginal cost is a. $60.00. b. $4.50. c. $5.00. d. $6.00. e. This cannot be determined based on the information provided. Approximately how much money would you need to place in a […]

Exhibit 39-2 If P1 is a price support, the quantity of wheat purchased by the market would be equal to a. Q2. b. Q0. c. Q1. d. Q2 – Q1. e. Q1 – Q0. A person buys a bond with […]

If an economist says “the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus,” this means that a. individuals don’t like high-priced oranges. b. as the price of oranges rises, individuals’ preferences change and they no […]

If you thought the share price of a stock was going to fall, would you be more likely to buy a call option or a put option? a. a call option b. a put option c. a call option and […]

Exhibit 24-9 The reason we know the firm represented in the exhibit is a price searcher and not a price taker is because a. its total costs rise as more output is produced and sold. b. it has to lower […]

The addition to total cost that results from employing one additional unit of a resource is called a. average factor cost. b. marginal factor cost. c. average total cost. d. marginal cost. If goods are not rationed according to price, […]

For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which a. MR = MC. b. MR = AVC. c. P = ATC. d. MR = ATC. The vertical distance between the AVC […]

Special interest groups a. often gain from public policies that may not be in accord with the interests of the general public. b. never gain from public policies that are not in accord with the interests of the general public. […]