When employees are paid more than their worth when they are hired and less than their worth near retirement
A) compensation is forward loaded.
B) compensation is backloaded.
C) compensation is fair.
D) compensation is independent of productivity.
QUESTION 2When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as:
a. the marginal product of labor > 0.
b. the marginal revenue product of labor < the marginal resource cost.
c. the marginal revenue product of labor > the marginal resource cost.
d. none of the above.
QUESTION 3Explain the reasons for separating ownership and management in all large organizations.
QUESTION 4A wage profile rises because
A) employees become more productive over time.
B) employees become less productive over time.
C) managers are better able to monitor employees.
D) increases in the minimum wages push up other wages.
QUESTION 5A worker's contribution to the firm's revenue is measured directly by the worker's:
a. value of marginal product.
b. marginal product multiplied by his/her wage.
c. marginal product minus his/her wage.
d. contribution to total output.
QUESTION 6What is a hierarchy?
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