Question 1

Which of the following is a reason that long-term jobs can only partially be explained by the accumulation of firm-specific human capital?

Accepted Answer

A)   Long-term jobs also require general human capital.
B)   Some workers' real earnings decline over time.
C)   Firm-specific human capital only partially explains the level of a worker's output.
D)   Workers only acquire firm-specific human capital for the first few weeks of a job.
E)   Only high-ability workers are able to acquire firm-specific human capital.F) B) and C)
G) B) and D) B

Question 2

In the working relationship of a boss,B,and a worker,W,which of the following is NOT necessarily true?

Accepted Answer

A)   W accepts authority when his behavior is determined by B's decisions.
B)   B has formal authority if he has the right to veto a proposal and implement his own plans.
C)   B has real authority if he has the right to fire W.
D)   W enters into an employment contract with B when W agrees to accept the authority of B and B agrees to pay W a stated wage.
E)   W can choose whether or not to accept an employment contract.F) A) and E)
G) A) and C)

Question 3

Which of the following is a reason the Peter principle's inefficient promotion practices might occur?

Accepted Answer

A)   asymmetric ignorance about workers' true abilities
B)   incentive problems
C)   hierarchical management structures
D)   tournament schemes
E)   efficiency wagesF) None of the above
G) C) and E) C

Question 4

According to Doeringer and Piore (1971) ,the supplants the price and wage system of the as the primary means .

Accepted Answer

A)   internal labor market;external labor market;by which scarce resources are allocated
B)   internal labor market;external labor market;by which workers are recruited
C)   internal labor market;external labor market;by which the market is organized
D)   external labor market;internal labor market;by which scarce resources are allocated
E)   external labor market;internal labor market;by which workers are recruitedF) A) and B)
G) B) and E)

Question 5

Which of the following is,by definition,enforceable in a court of law?

Accepted Answer

A)   an implicit contract
B)   a relational contract
C)   the Peter principle
D)   an explicit contract
E)   a Pareto optimal contractF) A) and E)
G) A) and B) D

Question 6

Which of the following is NOT a true statement about relational contracts?

Accepted Answer

A)   A relational contract has unenforceable elements.
B)   A relational contract must be self-enforcing in order to be effective.
C)   In order to work,a relational contract must have long-term benefits of adhering to the contract that are greater than the short-term gains of breaking the contract.
D)   A relational contract is based on reputation.
E)   A relational contract includes only verifiable information.F) B) and E)
G) A) and E)

Question 7

The owner of an asset enjoys _______ ,which are the rights to all uses of an asset in a way not consistent with a prior contract.

Accepted Answer

A)   residual control rights
B)   formal authority
C)   real authority
D)   the buy decision
E)   the make-or-buy decisionF) B) and C)
G) A) and B)

Question 8

Ports of entry and exit are defined as:

Accepted Answer

A)   where the internal labor market comes in contact with the external labor market.
B)   where manufactured products enter and leave a firm.
C)   respectively,the wages workers take in and the output they produce.
D)   respectively,the output workers produce and the wages they take in.
E)   the methods by which inputs are received by a firm and output is delivered by aFirm.F) All of the above
G) B) and D)

Question 9

Which of the following is an example of the make-or-buy decision?

Accepted Answer

A)   A textbook maker decides whether to rent an office building or buy an office building.
B)   A shoe salesman decides whether to work at a department store or a local shoe store.
C)   A mother decides whether to babysit her own children or send her children to daycare.
D)   A scientist decides whether to hire a new research assistant or give the research assistant he already has employed more work.
E)   A teacher decides whether to teach first or second grade.F) A) and E)
G) D) and E)

Question 10

e canonical view of an internal labor market is NOT characterized by which of these stylized properties?

Accepted Answer

A)   The organization has a distinct and stable hierarchy of jobs.
B)   Wages are attached to jobs rather than the workers who fill those jobs.
C)   The workers' actions are determined by a price and wage system.
D)   Workers have lengthy careers at the firm along a job ladder where promotionsAre often the result of seniority rather than performance.
E)   The internal labor market is attached to the external labor market through portsOf entry and exit.F) B) and C)
G) C) and E)

Question 11

Which of the following is NOT a reason that a firm might make a reputational nvestment?

Accepted Answer

A)   in order to improve or retain its reputation among potential workers
B)   in order to reap immediate rewards
C)   in order to induce workers to make costly effort
D)   in order to reap future benefits
E)   in order to attract high-quality workersF) A) and B)
G) A) and C)

Exam 16: Careers and the Employment Relation

Which of the following is a reason that long-term jobs can only partially be explained by the accumulation of firm-specific human capital?

Correct Answer
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B

In the working relationship of a boss,B,and a worker,W,which of the following is NOT necessarily true?

Correct Answer
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Which of the following is a reason the Peter principle's inefficient promotion practices might occur?

Correct Answer
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C

According to Doeringer and Piore (1971) ,the supplants the price and wage system of the as the primary means .

Correct Answer
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Which of the following is,by definition,enforceable in a court of law?

Correct Answer
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D

Which of the following is NOT a true statement about relational contracts?

Correct Answer
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The owner of an asset enjoys _______ ,which are the rights to all uses of an asset in a way not consistent with a prior contract.

Correct Answer
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Ports of entry and exit are defined as:

Correct Answer
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Which of the following is an example of the make-or-buy decision?

Correct Answer
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e canonical view of an internal labor market is NOT characterized by which of these stylized properties?

Correct Answer
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Which of the following is NOT a reason that a firm might make a reputational nvestment?

Correct Answer
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Exam 16: Careers and the Employment Relation

Which of the following is a reason that long-term jobs can only partially be explained by the accumulation of firm-specific human capital?

Correct AnswerverifiedB

In the working relationship of a boss,B,and a worker,W,which of the following is NOT necessarily true?

Correct AnswerverifiedShow Answer

Which of the following is a reason the Peter principle's inefficient promotion practices might occur?

Correct AnswerverifiedC

According to Doeringer and Piore (1971) ,the supplants the price and wage system of the as the primary means .

Correct AnswerverifiedShow Answer

Which of the following is,by definition,enforceable in a court of law?

Correct AnswerverifiedD

Which of the following is NOT a true statement about relational contracts?

Correct AnswerverifiedShow Answer

The owner of an asset enjoys _______ ,which are the rights to all uses of an asset in a way not consistent with a prior contract.

Correct AnswerverifiedShow Answer

Ports of entry and exit are defined as:

Correct AnswerverifiedShow Answer

Which of the following is an example of the make-or-buy decision?

Correct AnswerverifiedShow Answer

e canonical view of an internal labor market is NOT characterized by which of these stylized properties?

Correct AnswerverifiedShow Answer

Which of the following is NOT a reason that a firm might make a reputational nvestment?

Correct AnswerverifiedShow Answer

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B

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C

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D

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