Question : 71. Which of the following a factor to consider in keeping : 1250905

71. Which of the following is a factor to consider in keeping many types of production in one’s own country which has high labor costs rather than shifting to low labor cost countries? 
A. Relative labor costs are stable over time.
B. The quality and productivity of national labor forces generally do not vary.
C. Any consideration of where to locate production can be based on labor considerations alone.
D. The combination of lower labor costs and higher productivity translates into lower unit labor costs.

One indicator of productivity is gross domestic product per person, adjusted for differences in purchasing power.

72. During the recent financial crisis, the U.S. government, as part of the _____, decided it was appropriate to further regulate executive pay in firms receiving government “bail out” money. 
A. NCUA Corporate Stabilization Program
B. Troubled Asset Relief Program
C. Equal Pay Act
D. Civil Rights Act

Regulatory and labor market factors, like, Troubled Asset Relief Program (TARP) influence executive pay.

73. Top executive pay in the United States: 
A. is not questioned by American citizens.
B. is justified because of the high pay of many athletes/entertainers.
C. is the highest in the world.
D. is lesser when compared to other more developed countries.

Long-term compensation, typically in the form of stock plans, is the major component of CEO pay, which means that CEO pay varies with the performance of the stock market.

74. In employees’ minds, a “frame of mind that mistrusts senior management’s intentions, doubts its competence, and resents its self-congratulatory pay” is the: 
A. trust gap.
B. communication gap.
C. subordination gap.
D. compliance gap.

The fact that the differential between top executive pay and that of an average manufacturing worker is so much higher in the United States than in some other countries has been described as creating a “trust gap.”

75. The U.S. law that prohibits sex- or race-based differences in employment outcomes such as pay, unless justified by business necessity, is: 
A. the National Labor Relations Act.
B. Title VII of the Civil Rights Act.
C. the Fair Labor Standards Act.
D. Executive Order 11246.

Equal employment opportunity (EEO) regulation such as Title VII of the Civil Rights Act prohibits sex- and race-based differences in employment outcomes such as pay, unless justified by business necessity like pay differences stemming from differences in job performance.

76. The major use of job evaluation procedures is: 
A. in helping to capture the market pay policy and then applying that to nonkey jobs for which market data are not available.
B. typically to replace the market in pay setting.
C. in helping people evaluate the fairness of their situations by comparing them with those of other people.
D. that they are the main advertising tool organizations use to design job structures.

Job evaluation has typically been used to help apply the market pay policy, quite the opposite of replacing the market in pay setting.

77. Which theory states that market forces provide the most efficient means of pricing and allocating people to jobs? 
A. Equity theory
B. Efficiency wage theory
C. Economic theory
D. Expectancy theory

In economic theory, moving away from a reliance on market forces would result in some jobs being paid too much and others too little, leading to an oversupply of workers for the former and an undersupply for the latter.

78. The “crowding” hypothesis, as related to aspects of pay determination responsible for differences between male and female pay, argues that: 
A. adjusting for differences in pay related to education, labor-market experience, and occupation does not explain all earning differences.
B. market surveys perpetuate earnings differences based on sex.
C. women were historically restricted to entering a small number of occupations.
D. as the labor force participation rates of women has risen, the female-to-male earnings ratio has increased.

As a result of the “crowding” hypothesis, the supply of workers far exceeded demand, resulting in lower pay for such occupations.

79. Comparable worth is a public policy that: 
A. advocates remedies for any undervaluation of jobs based on market-pay data.
B. advocates equal pay for jobs of equal content.
C. has been consistently upheld in court rulings.
D. advocates the use of job evaluation to replace the market in pay-setting.

The idea of comparable worth is to obtain equal pay, not just for jobs of equal content but for jobs of equal value or worth, on the basis of Title VII of the Civil Rights Act.

80. The courts have consistently ruled that using the going market rates of pay: 
A. is unconstitutional.
B. favors minorities.
C. favors the majority group.
D. is an acceptable defense in comparable worth litigation suits.

Organizations face competitive labor and product markets. Paying less or more than the market rate will put the organization at a competitive disadvantage. Thus there is no comparable worth legal mandate in the U.S. private sector.