1- If we pay our employees for knowledge, skills, and abilities they may never use in the workplace, our overall compensation cost ___________.

A. changes insignificantly

B. does not change

C. goes up

D. goes down

2- Overlapping _____ allows flexibility in assigning each person’s pay rate within a particular pay level.

A. pay lines

B. pay levels

C. compensable factors

D. benchmark jobs

E. job evaluations

3- Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act. In other words, Halle will pay her workers _________.

A. at-the-market wages

B. skill-based pay

C. overtime wages

D. minimum wage

4- If Brittany reaches her sales goals for this quarter, she will receive a $2,000 bonus. This part of her compensation is considered ________.

A. base pay

B. a wage and salary add-on

C. benefits

D. incentive pay

5- Which theory says that employee motivation will remain high when employees believe that a particular level of effort on their part will lead to a desired level of performance, and that level of performance leads to an outcome that they want?

A. Learning theory

B. Equity theory

C. Expectancy theory

D. Operant conditioning theory

E. Efficiency wage theory

6- The job ranking method simply ranks jobs ___________________.

A. based on number of job openings

B. based on education attainment

C. from lowest to highest

D. from most- to least-desirable