Practice_Chapter 14 - CHAPTER 14 ATTRACTING AND RETAINING...

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CHAPTER 14 - ATTRACTING AND RETAINING QUALIFIED EMPLOYEES If an prospective employee is not offered her reservation utility or reservation wage, then she will: A. tend to look for another job or withdraw from the labor market. B. seek a larger benefit package. C. use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time. D. accept the job because a wage below the reservation utility is very attractive. There are several assumptions that are the basis of the operation of the benchmark competitive labor market. Which of the following is not one of these assumptions? A. Wage rates are costlessly observable. B. All jobs are identical. C. There are no long term contracts. D. Compensation is made up of wages and benefits. In the benchmark competitive case, the firm will expand the hiring of employees until the marginal revenue product is: A. less than the market wage rate. B. equal to the market wage rate. C. greater than the market wage rate. D. the universe of the market wage rate. If a firm in a competitive labor market offers less than the market wage rate if it will A. be able to attract a large number of employees because the marginal revenue product is low. B. find that it has broken a federal wage law. C. attract too few employees. D. find that the supply is greater than the demand. The value of human capital is determined by: A. special team of experts in each college and university. B. a ranking system of the relative value of different sorts of education to society. C. the forces of supply and demand in the market. D. an investment board at the New York Stock Exchange.
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The salary gains from specific training in human capital tend to go to the: A. employing firm, not the individual. B. federal government in higher taxes. C. individual, not the employing firm. D. parents, since they paid the education in the first place. The salary gains from general training in human capital tend to go to the: A. employing firm, not the individual. B. federal government in higher taxes. C. individual, not the employing firm. D. parents, since they paid the education in the first place. The extra wage that is paid to an individual to attract her to a less desirable job is called: A. the benchmark competitive wage.
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