B the market clearing wage always exceeds the

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B. the market-clearing wage always exceeds the efficiency wage. C. worker productivity falls as wage rates rise beyond the equilibrium wage. D. if the efficiency wage exceeds the market-clearing wage, permanent unemployment may result. AACSB: Reflective Thinking Skills Blooms: Understanding Learning Objective: 13-6 McConnell - Chapter 13 #162 Topic: Pay and performance 163. Compensation paid in proportion to the number of units of personal output best describes: A. royalties. B. profit-sharing. C. bonuses. D. piece rates. AACSB: Analytical Skills Blooms: Knowledge Learning Objective: 13-6 McConnell - Chapter 13 #163 Topic: Pay and performance
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164. A firm might choose to pay its employees a wage higher than that which would clear the market because: A. the higher wage raises the opportunity cost of shirking. B. the higher wage may shift the labor demand curve to the left. C. the firm will have higher turnover, allowing "new blood" to invigorate older workers who have a greater tendency to shirk. D. this policy reduces the proportion of experienced to inexperienced workers, resulting in a lower overall wage bill. AACSB: Reflective Thinking Skills Blooms: Understanding Learning Objective: 13-6 McConnell - Chapter 13 #164 Topic: Pay and performance 165. Author Joe Writer receives $2 per book sold. This payment is a(n): A. piece rate. B. royalty. C. bonus. D. example of profit-sharing. AACSB: Analytical Skills Blooms: Application Learning Objective: 13-6 McConnell - Chapter 13 #165 Topic: Pay and performance 166. For the firm, the major goal of profit sharing plans is to: A. force workers to incur some of the business risk. B. overcome the monopsony problem of having to pay higher wages to attract additional workers. C. overcome the principal-agent problem by better aligning the workers' interests with those of the firm. D. reduce total compensation payments. AACSB: Reflective Thinking Skills Blooms: Understanding Learning Objective: 13-6 McConnell - Chapter 13 #166 Topic: Pay and performance 167. Stock options as a form of payment are designed to: A. evade the equal-pay-for-equal work provisions of the Federal antidiscrimination law. B. boost the overall earnings of minimum wage workers. C. offset monopsony. D. address the principal-agent problem. AACSB: Reflective Thinking Skills Blooms: Application Learning Objective: 13-6 McConnell - Chapter 13 #167 Topic: Pay and performance 168. One of the potential negative side-effects of pay in the form of sales commissions is: A . a greater incentive for sales people to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm. B. increased volatility of sales revenue for the firm.
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B the market clearing wage always exceeds the efficiency...

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