Chapter 1: The Pay Model
Multiple Choice Questions
1. (p. 5) Which of the following includes restrictions on executive pay that are designed to
discourage executives from taking "unnecessary and excessive risks"?
A. Corporate Welfare Program
B. Employee Welfare Program
C. Troubled Asset Relief Program
D. Corporate Liability Relief Program
Difficulty: Medium
2. (p. 5) According to the text, if women had the same education, experience, and union
coverage as men and also worked in the same industries and occupations, they would be
expected to earn about _____ of what men earn.
A. 62%
B. 70%
C. 80%
D. 90%
Difficulty: Easy
3. (p. 5) Employers spend ____ cents for benefits in addition to each dollar of wages or
salaries.
A. 44
B. 34
C. 24
D. 14
Answer: A
Difficulty: Difficult
,
,4. (p. 6) Hourly compensation costs for manufacturing workers are higher in _____ than the
U.S.
A. Germany
B. Czech Republic
C. Spain
D. Singapore
Difficulty: Medium
5.(p. 6) One of the reasons 8 in 10 working families have no health insurance is because
______
A. many large employers do not offer health insurance
B. health insurance is more costly at large employers
C. many small employers do not offer health insurance
D. most workers decline health insurance when offered by their
employer
Difficulty: Medium
, 6. (p. 7) _____ would be most concerned about executive pay.
A. Managers
B. Employees
C. Society
D. Stockholders
Difficulty: Easy
7. (p. 7) _____ would be most concerned about compensation as a major expense.
A. Managers
B. Employees
C. Society
D. Stockholders
Difficulty: Easy
8. (p. 9) The primary reason compensation is important to managers is because:
A. employees regard it as a reward.
B. it influences employee behavior.
C. it is a larger cost than benefits.
D. stock holders dislike high compensation costs.
Multiple Choice Questions
1. (p. 5) Which of the following includes restrictions on executive pay that are designed to
discourage executives from taking "unnecessary and excessive risks"?
A. Corporate Welfare Program
B. Employee Welfare Program
C. Troubled Asset Relief Program
D. Corporate Liability Relief Program
Difficulty: Medium
2. (p. 5) According to the text, if women had the same education, experience, and union
coverage as men and also worked in the same industries and occupations, they would be
expected to earn about _____ of what men earn.
A. 62%
B. 70%
C. 80%
D. 90%
Difficulty: Easy
3. (p. 5) Employers spend ____ cents for benefits in addition to each dollar of wages or
salaries.
A. 44
B. 34
C. 24
D. 14
Answer: A
Difficulty: Difficult
,
,4. (p. 6) Hourly compensation costs for manufacturing workers are higher in _____ than the
U.S.
A. Germany
B. Czech Republic
C. Spain
D. Singapore
Difficulty: Medium
5.(p. 6) One of the reasons 8 in 10 working families have no health insurance is because
______
A. many large employers do not offer health insurance
B. health insurance is more costly at large employers
C. many small employers do not offer health insurance
D. most workers decline health insurance when offered by their
employer
Difficulty: Medium
, 6. (p. 7) _____ would be most concerned about executive pay.
A. Managers
B. Employees
C. Society
D. Stockholders
Difficulty: Easy
7. (p. 7) _____ would be most concerned about compensation as a major expense.
A. Managers
B. Employees
C. Society
D. Stockholders
Difficulty: Easy
8. (p. 9) The primary reason compensation is important to managers is because:
A. employees regard it as a reward.
B. it influences employee behavior.
C. it is a larger cost than benefits.
D. stock holders dislike high compensation costs.
