Question : 71) In a study conducted by the U.S. Postal Service : 1346229

Economics

71) In a study conducted by the U.S. Postal Service regarding drug testing, applicants who had positive drug tests were fired nearly ________ % more often than those who did not.

A) 10

B) 25

C) 40

D) 55

72) A study conducted by the U.S. Postal Service regarding drug testing:

A) showed that drug testing is a valid predictor of job performance.

B) showed that drug testing does not correlate with on-the-job performance.

C) revealed that most job candidates can “beat” a drug test.

D) has been struck down by the Supreme Court.

73) An employer’s best defense against liability in a negligent hiring lawsuit is to use which of the following selection tools?

A) Structured interviews

B) Honesty tests

C) Personality tests

D) Reference checks

74) Many former employers are reluctant to give references for fear of liability if the reference keeps the former employee from getting a job. The courts have held that employers have a “qualified privilege” if the employer:

A) only discusses EEO-related information.

B) has selection test information to support the reference.

C) only gives information to an inquirer who has a job-related need to know.

D) qualifies the information as “his/her opinion” and not necessarily factual.

75) Most state courts have upheld that employers have a qualified privilege to discuss an employee’s past performance. Which of the following is NOT one of the rules a firm must follow to have this privilege?

A) Applicant must receive a copy of any information released by a former employer.

B) Inquirer must exhibit a job-related need to know the information.

C) Former employers must release only truthful information.

D) EEO-related information should not be released.

76) Which screening method is most commonly used to help firms avoid negligent hiring lawsuits?

A) Recommendation letters

B) Assessment centers

C) Background checks

D) Honesty tests

77) It is generally held in the U.S. that graphology is:

A) an invalid predictor of job performance.

B) an unreliable but valid predictor of job performance.

C) a valid selection tool when combined with psychological testing.

D) associated with creating disparate impact among minority groups.

78) A manager wants to combine selection tools to help him make a staffing decision. He wants to make a preliminary selection after administering each instrument. He is most likely using a ________ strategy.

A) clinical

B) statistical

C) centralized

D) multiple hurdle

79) Which selection strategy is most appropriate when a large number of applicants are being considered for a position?

A) single-variant

B) multiple-hurdle

C) statistical

D) clinical

80) One of your employees, a member of a protected class, loses his temper and assaults and injures a customer. The customer is also a member of a protected class. During the investigation, the police discover that the employee has a long history of such behavior and served jail time for assault and battery. As the employer, you are most likely:

A) not liable for any injuries because the employee was a member of a protected class.

B) not liable for negligent hiring because you had an affirmative action plan.

C) liable for negligent hiring because you did not conduct a background check.

D) liable for injuries under Executive Order 11246.

Case 5.1

About a year ago, Powley Publishing began looking for a new managing editor for its home and garden magazine. The previous editor retired after 25 years on the job. The editors and the HR department debated about the key requirements for a new managing editor. Some felt it was knowledge of the business, others thought it was interpersonal skills. A few others believed it was the ability to attract writing talent and subscribers. Finally, it was decided that HR would screen candidates, and the editors would interview finalists in conjunction with HR. The HR director would make the final choice to avoid competition among the editors.

Advertisements were placed nationally. A number of candidates were tested and interviewed by the HR manager, and references were checked. After a long search, a new managing editor, Jeff, was hired, but it quickly became apparent that a poor selection had been made. Although Jeff was competent, his overbearing management style drove two talented editors to leave for jobs with competitors. Jeff fulfilled all tasks of the position except soliciting writers and subscribers. In addition, Jeff offered no ideas or direction about increasing circulation. After 10 months, the publisher let Jeff go and began looking for a new managing editor.

This time, the firm wants to find someone who is willing to tackle all tasks of the position and who has the right skills and personality mix. The firm wants someone who can start quickly and doesn’t require significant training. The ability to innovate is less critical than the motivation to work hard. Recruiting funds are very limited.

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July 1, 2023

11) If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then

A) neither country has anything to gain from specialization and trade.

B) it is reasonable to expect that specialization will benefit both countries, but trade will not.

C) it is reasonable to expect that specialization and trade will benefit both countries.

D) it is reasonable to expect that trade will benefit both countries, but specialization will not.

12) If Brazil has a comparative advantage in the production of coffee compared to the United States, then

A) Brazil also has an absolute advantage in the production of coffee.

B) the United States has an absolute advantage in the production of coffee.

C) Brazil can produce coffee at a lower opportunity cost than the United States.

D) the United States cannot produce coffee.

13) The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage,

A) only the production of wheat will increase.

B) the production and consumption of both goods will increase.

C) only the production of both goods will increase.

D) only the consumption of both goods will increase.

14) Suppose that Japan and India are both engaged in the production of radios and rice, and that Japan has an absolute advantage in the production of both goods. If India has a lower opportunity cost for producing rice, then

A) India has a comparative advantage in rice production, but there will be no gains from specialization and trade.

B) Japan has a comparative advantage in the production of both goods.

C) India has a comparative advantage in the production of rice, but it is outweighed by Japan's absolute advantage in rice production.

D) India has a comparative advantage in the production of rice, and specialization and trade between the two countries can be mutually beneficial.

15) If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal,

A) the opportunity cost of producing sugar is less in Country A.

B) the opportunity cost of producing rice is less in Country B.

C) specialization does not benefit either country.

D) each country will produce identical quantities of sugar and rice.

16) Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile

A) has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade.

B) has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production.

C) has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.

D) should continue to produce copper, but only for domestic consumption, because trade is not a viable option.

Refer to the information provided in Table 19.1 below to answer the questions that follow.

Table 19.1

17) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 5 bushels of oranges.

18) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 4 bushels of bananas.

19) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 5 bushels of bananas.

20) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 4 bushels of oranges.