#1
What is 'human capital' in labor economics?
Educational and experiential attributes of labor
ExplanationHuman capital encompasses the educational and experiential qualities of the labor force.
#2
According to Herzberg's Two-Factor Theory, which of the following is a hygiene factor in the workplace?
Company policy
ExplanationCompany policy is a hygiene factor according to Herzberg's Two-Factor Theory.
#3
What is the 'minimum wage'?
The wage set by the government as the lowest legal payment for most workers
ExplanationThe minimum wage is the lowest legal payment set by the government for most workers.
#4
Which of the following best describes 'job satisfaction'?
The emotional and psychological fulfillment derived from a job
ExplanationJob satisfaction is the emotional and psychological fulfillment derived from a job.
#5
Which of the following best describes 'compensating wage differentials'?
Wage differences due to differences in job characteristics
ExplanationCompensating wage differentials arise from variations in job characteristics affecting wages.
#6
In labor economics, what does the term 'efficiency wage' refer to?
Wages paid above the market rate to increase worker productivity
ExplanationEfficiency wages are payments exceeding market rates, designed to enhance worker efficiency.
#7
What is the primary focus of labor market segmentation theory?
Analyzing how labor markets are divided into distinct segments
ExplanationLabor market segmentation theory centers on the analysis of distinct segments within labor markets.
#8
Which concept in organizational theory refers to the process of adapting to changes in the external environment?
Organizational change
ExplanationOrganizational change in organizational theory pertains to adapting to external environmental changes.
#9
What does the 'Labor Force Participation Rate' measure?
The percentage of the working-age population that is either employed or actively seeking employment
ExplanationThe Labor Force Participation Rate gauges the percentage of the working-age population engaged in employment or actively seeking it.
#10
Which theory of the firm emphasizes the importance of a hierarchical structure and clear division of labor?
Transaction Cost Economics
ExplanationTransaction Cost Economics highlights the significance of hierarchy and labor division in firms.
#11
According to institutional theory, what drives organizations to mimic successful practices of other firms?
Gaining legitimacy and social acceptance
ExplanationOrganizations mimic successful practices to gain legitimacy and social acceptance, as per institutional theory.
#12
Which of the following is NOT a characteristic of a monopsonistic labor market?
Perfect competition among workers
ExplanationMonopsonistic labor markets lack perfect competition among workers.
#13
In the context of labor economics, what does the term 'reservation wage' signify?
The wage below which a worker is not willing to accept employment
ExplanationThe reservation wage is the minimum wage a worker is willing to accept for employment.
#14
Which theory of organizational behavior emphasizes the role of leadership styles in motivating employees?
Transformational Leadership Theory
ExplanationTransformational Leadership Theory focuses on the impact of leadership styles in motivating employees.