Question

QUESTION 21

1. Which of the following is nota problem usually associated with individual incentive-pay schemes?

   		Wide variations in the firm’s profits
   		Erosion of group loyalty
   		Overemphasis on the measurable aspects of job performance
   		Misuse of the equipment

2 points   

QUESTION 22

1. In the human capital model of education, going to school longer

   		makes the worker more productive after he or she leaves school.
   		is a waste of social resources
   		signals the worker's innate ability
   		is essential to promote economic growth

2 points   

QUESTION 23

1. Based on the human-capital investment framework, quit rates should be expected to fall with age because

   		older workers are more mature and face lower psychic costs when changing jobs.
   		older workers have longer job tenures.
   		older workers have a shorter time over which to recover the costs associated with quitting.
   		all of these

2 points   

QUESTION 24

1. If an employer back-loads pay along a competitive wage profile, then

   		it attracts workers who are bad matches
   		it promotes workers too quickly
   		it dismisses workers before it's time to overpay them
   		workers quit before the firm tries to underpay them

Answer 1

Answer 21 - Correct option is A

Reason - wide variation in firms profit is not a problem in individual incentive pay scheme. Some of the associated problems are

• Misuse of equipment
• They can crush creativity
• Make you addictive
• Erosion of group loyalty
• Overemphasis on aspects of job performance

Answer 22 - correct option is C

Reason - according to human capital model of education, goin to school makes workers more productive since after then he becomes a skilled and educated labour which is essential for economic growth

Answer 23 ,- option C is correct answer

Reason - since old workers have longer job tenures quit rates should be expected to fall

Answer 24 - correct option is D.

Reason - workers will obviously quit before the firm tries to pay them at lower rate if an employer back loads pay