Which of the following economic theories suggests that employees are motivated by monetary rewards and will work harder as pay increases?
A) Maslow's Hierarchy of Needs
B) Herzberg's Two-Factor Theory
C) Classical Economic Theory
D) Equity Theory
Answer: C) Classical Economic Theory
According to the Labor Market Theory, which of the following determines wages for a given job?
A) Demand for labor and supply of labor
B) Employer's profit margins
C) Job satisfaction of employees
D) Location and cost of living
Answer: A) Demand for labor and supply of labor
Which economic theory emphasizes that compensation should be based on the value of the contribution made by an individual employee?
A) Efficiency Wage Theory
B) Human Capital Theory
C) Agency Theory
D) Rent Theory
Answer: B) Human Capital Theory
In the context of compensation, the concept of marginal productivity suggests that:
A) Employees should be paid based on the cost of living in their area.
B) Wages are determined by the additional value a worker brings to the company.
C) Compensation should be equal across all employees.
D) Wages are influenced only by union negotiations.
Answer: B) Wages are determined by the additional value a worker brings to the company.
Which economic concept underpins the idea that higher wages can lead to increased productivity by attracting more qualified workers?
A) Keynesian Economic Theory
B) Efficiency Wage Theory
C) Demand and Supply Theory
D) Cost-Benefit Analysis
Answer: B) Efficiency Wage Theory
Which job design theory emphasizes the importance of increasing the variety of tasks and responsibilities to improve employee motivation?
A) Job Enlargement
B) Job Rotation
C) Job Enrichment
D) Scientific Management
Answer: C) Job Enrichment
In job design, task significance refers to:
A) The skills required to perform the job.
B) The importance of the job in contributing to the organization’s success.
C) The amount of autonomy the employee has in their role.
D) The level of social interaction involved in the role.
Answer: B) The importance of the job in contributing to the organization’s success.
Which of the following is most likely to be a goal of job redesign in an organization?
A) Increasing employee wages
B) Improving organizational culture
C) Enhancing job satisfaction and reducing turnover
D) Standardizing job duties
Answer: C) Enhancing job satisfaction and reducing turnover
Team-based compensation is best suited for organizations that:
A) Focus on individual performance and achievement.
B) Have tasks that require high levels of interdependence.
C) Emphasize seniority over team collaboration.
D) Use a flat pay structure for all employees.
Answer: B) Have tasks that require high levels of interdependence.
In a team-based compensation system, which of the following is commonly used to assess team performance?
A) Individual sales quotas
B) Team productivity and goal achievement
C) Employee satisfaction surveys
D) Length of service
Answer: B) Team productivity and goal achievement
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