300 Lecture Notes - Lecture 5: Isocost, Isoquant

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emilypena887

17 Dec 2021

School

UHD

Department

Business Administration

Course

300

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Suppose that a firm has a budget of that the wage rate is per hour, and the rental rate of capital is per hour. With labor on the horizontal axis and capital on the vertical axis, the original isocost line has a vertical-axis intercept of 300 hours of capital usage and a horizontal-axis intercept of 3,000 hours of labor usage. The slope of this isocost line is (-)1/10 or 0. 10. With the specified changes in factor prices, the isocost line shifts inward on both axes because the prices of both inputs have increased. The new intercepts are at 250 hours of capital and. 2,000 hours of labor, and the new isocost line is slightly steeper [having a slope of (- Explain how producers would respond, using the isocost/isoquant framework. Suppose the isocost and isoquants are drawn such that the capital is measured on the vertical axis and labor on horizontal axis.

Related Questions

QUESTION 1

Some workers are being paid above their pay range and then they get their wage rate frozen at their current rate of pay until salary scales catch up. What is this practice is called?
a.
green-circling
b.
red-circling
c.
merit pay reduction
d.
conservative pay reduction

1 points

QUESTION 2

Functional job analysis was pioneered in the United States in the 1930s and is the precursor to the Canadian National Occupational Classification system.

True

False

1 points

QUESTION 3

Which method of job analysis focuses on the behaviours that make up a job and uses job elements to describe work activities?
a.
Position Analysis Questionnaire
b.
Interviews
c.
Observation
d.
Functional Job Analysis

1 points

QUESTION 4

A job specification is summary of the duties, responsibilities, and reporting relationships pertaining to a particular job.

True

False

1 points

QUESTION 5

What is one problem with using the ranking/paired job evaluation method?
a.
It is time consuming.
b.
It is not acceptable to pay equity commissions.
c.
It is not acceptable to employment equity commissions.
d.
It cannot address external market equity.

1 points

QUESTION 6

What are the three main reasons for conducting job evaluations?
a.
to decrease wage costs, to create job families, and to create pay equity
b.
to control wage costs, to create equitable pay structures, and to create employment equity
c.
to control wage costs, to create equitable pay structures, and to create the perception of an equitable pay system among participants
d.
to increase wage costs, to create equitable pay structures, and to create pay equity

1 points

QUESTION 7

In 2018, Canada passed pay equity legislation that applies to all employers in Canada.

True

False

1 points

QUESTION 8

A job description is a summary of the employee qualifications required to perform the duties for a given job.

True

False

1 points

QUESTION 9

What is the major benefit for the ranking method of job analysis?
a.
It creates a series of grade descriptions.
b.
It creates a series of grade descriptions.
c.
It creates relative equal intervals between job classifications.
d.
It incorporates market data.

1 points

QUESTION 10

What occurs to the female job class if the percentage of secretaries in that job class changes from 95 percent to 30 percent?
a.
It becomes a new job class.
b.
It becomes a male job class.
c.
It remains a female job class.
d.
It becomes a gender neutral job class.

1 points

QUESTION 11

Why might using job descriptions for job evaluation purposes prove problematic?
a.
Companies simply do not keep wage rates updated.
b.
The dynamic nature of the general environment creates a situation whereby job duties change without human resources departments noticing it.
c.
Creating and maintaining job descriptions is not a laborious process.
d.
The output created by the job analysis process yields poor results.

1 points

QUESTION 12

What is a valid reason to re-evaluate jobs?
a.
A new member joins the committee.
b.
The compensation-level strategy changes.
c.
A new performance system is implemented.
d.
There is a high level of appeals.

1 points

QUESTION 13

What is the first step in most pay equity processes?
a.
analyze gender data
b.
determine what rules and laws apply
c.
review compensation
d.
analyze and compare jobs

1 points

QUESTION 14

Which term refers to an organization that gives an employee the ability to appeal a decision of the job evaluation committee?
a.
procedural justice
b.
distributional justice
c.
organizational justice
d.
grievance system

1 points

QUESTION 15

What is the observation method of job analysis well-suited for?
a.
jobs that have a short work cycle
b.
jobs with a long work cycle
c.
minimum wage jobs
d.
minimum wage jobs

1 points

QUESTION 16

Which term refers to the relative value of different jobs as determined by knowledgeable individuals?
a.
the proxy method
b.
PAQ analysis
c.
paired comparison method
d.
the ranking method

1 points

QUESTION 17

Once an organization has posted its pay equity plan, it has met its legal responsibility under the legislation and no further action is required.

True

False

1 points

QUESTION 18

Which job evaluation category uses human judgement as the determining factor?
a.
whole job
b.
factor comparison
c.
statistical/policy capturing
d.
point-factor management analysis

1 points

QUESTION 19

ABC Inc. is a new organization planning to launch a call centre in the next six months. You have been tasked with creating detailed job descriptions for several operational roles in the call centre. Which information collection method would you likely rely on to gather job information?
a.
utility analysis
b.
functional job analysis
c.
variable analysis
d.
data analysis

1 points

QUESTION 20

What is a primary problem of job analysis process?
a.
creating too many job families
b.
analyzing the jobholder not the job
c.
having a committee
d.
professional designations

odoug

QUESTION 1

What is the method to establish pay grade widths in which the point spreads are equal for all pay grades?
a. pay grade bandwidth approach
b. equal interval approach
c. equal increase approach
d. equal percentage approach

1 points

QUESTION 2

Which variable may be considered an advantage associated with the "a priori" method in determining factor weights?
a. It simple and easily understood.
b. It assumes pay structures used for benchmarking are correct.
c. It emphasizes current pay scales.
d. It forces committee members to work together.

1 points

QUESTION 3

The point method of job evaluation has many benefits, but it does have some drawbacks. From the list below, what would be considered a drawback of the point method?
a. creates too large of a hierarchy of jobs
b. creates a large number of appeals
c. regression line is very rarely applied to the pay system
d. appears scientifically objective but in reality it is very subjective

1 points

QUESTION 4

You have been provided with the following information about a certain pay range: minimum $50,000; mid-point $55,000; and maximum $60,000. What is the range spread and the range spread percentage?
a. $10,000 and 20%
b. $5,000 and 83.33%
c. $5,000 and 20%
d. $10,000 and 8.33%

1 points

QUESTION 5

Which step in developing a job evaluation system using the point method allows you to quantify the extent to which each factor is present in a job?
a. defining the factors
b. weighting the factors
c. scaling the factors
d. testing the system

1 points

QUESTION 6

A company decides to include "customer contact" as a compensable factor in their job evaluation system. What conclusion can you draw from this?
a. The organization does not value "customer contact" above all other compensable factors.
b. The organization wants to avoid customer complaints.
c. "Customer contact" would be explicitly linked to performance bonuses.
d. "Customer contact" is central to the execution of the company's strategy.

1 points

QUESTION 7

Which of the following should be avoided when using the point method of job evaluation?
a. benchmarking
b. factor overlap
c. equal interval approach
d. enlargement of pay grid

1 points

QUESTION 8

A "match the market" pay strategy means all jobs in the organization will actually match the market.

True

False

1 points

QUESTION 9

Considering the factor of "supervisory responsibility," which degree statement is an example of inconsistent construct formation?
a. Degree 1: no supervisory responsibilities
b. Degree 2: responsible for supervision of one to three subordinates
c. Degree 3: responsible for supervision of four to nine subordinates
d. Degree 4: responsible for development of annual operating budget

1 points

QUESTION 10

In a point method of job evaluation, large pay range overlaps are preferred.

True

False

1 points

QUESTION 11

Which term refers to the differences between the range midpoints of adjacent pay grades in a pay structure expressed by dollars?
a. range spread
b. broadbands
c. split pay range
d. intergrade differentials

1 points

QUESTION 12

Which of the following best defines a benchmark job?
a. It is a job in the firm's job evaluation system for which there is a good match in the labour market data.
b. It is a job in the market data that matches a pay overlap.
c. It is the job in the organization that has a regression line equal to (1) on the pay policy line.
d. It is the job that is adjusted to the market line for the intended pay level.

1 points

QUESTION 13

Mille, a human resource compensation specialist, determines that the correlation coefficient is nearly –1 (negative one) after calculating a straight regression line. What conclusion can Mille make based on this nearly perfect correlation coefficient?
a. The lower the job evaluation points, the lower the pay
b. The higher job evaluation points, the higher the pay.
c. The higher the job evaluation points, the lower the pay.
d. The nearly –1 (negative one) correlation coefficient implies that no change in the pay system is required.

1 points

QUESTION 14

Your task is to persuade an executive to design a job evaluation system using the point method. What would be the focal point of your argument?
a. The point method has a high degree of accuracy in measuring jobs.
b. The point method includes performance management.
c. The point method is simple to use.
d. The point method is the only system recognized by employment equity legislation.

1 points

QUESTION 15

The terms job evaluation and job analysis are interchangeable.

True

False

1 points

QUESTION 16

One of the greatest benefits of using a point method of job evaluation is that it is statistically scientific.

True

False

1 points

QUESTION 17

Which statement best defines range spread?
a. It is the difference between the first and last pay broadband
b. It is the difference between the range midpoints of adjacent pay grades in a pay structure, expressed in dollars.
c. It is calculated by dividing the intergrade differential (expressed in dollars) of each pay grade by the midpoint (in dollars) of the previous pay grade
d. It is the difference between the maximum and the minimum pay level, in dollars, for a given pay range.

1 points

QUESTION 18

In order to establish a midpoint of the pay range you must first convert the market line into a pay line policy.

True

False

1 points

QUESTION 19

Which of the following takes place once the job evaluation system has been finalized?
a. compensable factors are weighed
b. all jobs are scored
c. factor degrees are analyzed
d. factor weightings are measured

1 points

QUESTION 20

What is a disadvantage of having very narrow pay grades?
a. The only way for an employee to significantly increase their wages is through a promotion.
b. It makes seniority systems redundant.
c. The reliability of the pay grade is low.
d. The internal stability of the pay grade is low.

odoug

300 Lecture Notes - Lecture 5: Isocost, Isoquant

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