51. Pretend that you want to determine the relationship between caffeine intake and performance on a midterm exam. As students sit down to take the exam, you ask them to write the number of cups of tea, soda, or coffee they ingested two hours prior to the exam. You also obtain their exam scores. You calculate the correlation coefficient between the two variables to be […]
31.For whom would a “Do Not Resuscitate” order be most appropriately applied? a.Mack, who is brain-deadc.Mort, whose liver failed b.Mary, who has Alzheimer’s diseased.Mike, whose heart stopped 32.Two paramedics arrive at a home where a middle-aged man is in cardiac arrest. As they get ready to perform CPR and attach a defibrillator, the man’s wife silently hands them a document as she softly cries. After […]
101. Dr. Cavanaugh examines the relationship between the trait of hardiness and senior citizens’ compliance with medication regimes; however, the hardiness measure he uses was based on college students. Based on this information, which of the following is the most apparent weakness of Dr. Cavanaugh’s study? A. The validity of the resilience measure B. The norming of the resilience measure C. The generalizability of compliance D. The reliability of […]
121. _____ is defined as the systematic inquiry aimed at the discovery of new knowledge. A. Theory B. Critical thinking C. Coherent observation D. Research 122. Each of the following is a descriptive research technique EXCEPT: A. experimental research. B. case study research. C. naturalistic observation. D. archival research. 123. Research in which existing data, such as census documents, college records, and newspaper clippings, are examined to test a hypothesis is known as _____. A. experimental […]
MULTIPLE CHOICE 1.Jesse is earning his Master’s degree, and he is interested in having a career in which he will study population trends. Jesse is preparing for a career as a(n) ________. a.demographerc.statistician b.psychometriciand.ethnographer 2.As a demographer, Sherwood would be most interested in studying a.implicit memory. b.the number of neural connections contained in the central nervous system. c.the distinction between presbyopia and presbycusis. d.how the […]
31. In cognitive appraisal, coping is ________. a) only existent after tertiary appraisal b) the primary mechanism in primary appraisal c) taking some course of action to reduce the effects of a stressor d) independent of primary and secondary appraisal 32. Jacinta finds applying for graduate school to be frustrating. She believes that the entire process is random. As such, this example highlights […]
51. Which of the following exhibits openness to experience? A. Sarah, who is very successful in the business she has started B. Phoebe, who donates generously only to programs sponsored by her church C. Jenny, who experiences more negative states than positive states D. Maria, who dresses very stylishly and attends parties with her friends every weekend 52. Which of the following traits is related to generosity and altruism […]
41. _____ is said to occur when therapists imparting certain basic social skills to their clients maintain eye contact and act assertively. A. Observational learning B. Contingency contracting C. Dialectical behavior therapy D. Behavioral activation 42. Which of the following statements is false regarding behavior therapy? A. It is especially effective in the treatment of anxiety disorders. B. It can produce actual changes in […]
Multiple Choice Questions 1. _____ is a statistically based approach that observes what behaviors are rare or occur infrequently in a specific society or culture and labels those deviations from the norm “abnormal.” A. Abnormality as deviation from the average B. Abnormality as deviation from the ideal C. Abnormality as a sense of personal discomfort D. Abnormality as the inability to function effectively 2. _____ refers […]
31. An example of extrinsic motivation is
A. challenging work.
B. variety of work.
C. promotion.
D. social interaction.
Extrinsic motivation depends on rewards (such as pay and benefits) controlled by an external source.
32. In agency theory, the _____ seeks to direct the behavior of the _____.
A. owner; principal
B. agent; principal
C. manager; agent
D. principal; agent
As per the agency theory, the principal is a person who seeks to direct another person's behavior. An agent is a person who is expected to act on behalf of a principal.
33. Research shows that owner-controlled and manager-controlled firms differ in which manner?
A. Owners like to change ownership more often than managers.
B. Managers are less likely to maximize short-run performance and pay.
C. Managers prefer relatively little risk in their pay.
D. Owners pursue more perquisites.
Managerial compensation in manager-controlled firms lay more emphasis on base salary and a lesser emphasis on uncertainty bonuses or incentives.
34. Which of the following is not a type of agency cost that arises in managerial compensation?
A. Management's desire for perquisites
B. Management's risk aversion
C. Management's desire for outcome-based pay systems
D. Management's focus on short-term performance and pay
Outcome-based pay systems help minimize agency costs.
35. Which of the following is not a feature of outcome-oriented principal-agent contracts?
A. When profits are high, compensation goes up.
B. The principal must invest in monitoring information.
C. Agents require a compensating wage differential.
D. Risk is increased for the agent.
Behavior-based contracts require that principal invest in monitoring in order to overcome information asymmetry.
36. According to agency theory, when a compensation system aligns the interests of the agent with the principal's own interests, the compensation system should
A. be behavior oriented.
B. reduce agency costs.
C. be outcome oriented.
D. reduce risks.
The agency theory says that the principal must choose a contracting scheme that helps align the interests of the agent with the principal's own interests thereby reducing agency costs.
37. Which of the following compensation systems would not be classified as an outcome-oriented contracting scheme (using agency theory terminology)?
A. Stock options
B. Profit sharing
C. Commissions
D. Merit pay
Merit pay is a behavior-oriented contracting scheme.
38. Which of the following factors would support the use of a behavior-based contract between principals and agents?
A. A tradition of using outcome-oriented contracts
B. R&D-oriented jobs
C. Outcome uncertainty
D. Employer has the ability to pay
In the case of outcome uncertainty, agents are exposed to greater risk and so would prefer behavior-based contracts.
39. Agency theory is of particular value in compensation management because of its emphasis on the _____ trade-off.
A. performance-reward
B. risk-reward
C. motivation-reward
D. ability-reward
Agency theory is of particular value in compensation management because of its emphasis on the risk-reward trade-off, an issue that needs close attention when companies consider variable pay plans.
40. ______ refers to decisions about whether to join or remain with the organization.
A. Membership behaviors
B. Identification behaviors
C. Organizational gregariousness
D. Associative habits
Membership behaviors are decisions about whether to join or remain with the organization.
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