Multiple Choice 1 Recruitment

Choose the one alternative that BEST completes the statement or answers the question.

1. (a) (b) (c) (d)

Personnel Economics is more accurate than management approach to human resources as it relies on mathematics uses economic arguments to provide pro and cons of different management techniques is like a cookbook, always provide the best solution to any type of problem is a soft approach of a rigorous topic

2. (a) (b) (c) (d)

The most important part of the worldwide wealth of firms is in their capital their financial capital and assets the characteristics of their workforce, like skills and knowledge the wage of their CEO

3. (a) (b) (c) (d)

Adverse selection arises because the firm knows the true ability of candidate but the candidate does not the candidate knows its true ability but the firm does not neither the firm or the candidate have information regarding the ability of the candidate differences in ability can not explain adverse selection

4. (a) (b) (c) (d)

Relying on credentials is not useful when the credential only reflects high ability candidate everybody can obtain the credential if they pay enough for it credentials reflect perfectly a candidate performance candidate resumes reflect well their value to the firm

5. (a) (b) (c)

Which of the following is true screening is usually more accurate than using credentials using credentials is usually more accurate than screening screening and credentials are as well effective (d) screening and credentials reflect the same technique

6. (a) (b) (c)

Screening is less profitable if screening costs are small test is more accurate the downside from hiring a poor candidate is low (d) the candidate plan to stay many years inside the firm

7. (a) (b) (c)

Temporary contracts are more often used than before may be a way for firms to learn workers abilities are substitutes to fixed term contracts (d) all the above are true

8. The objective of signaling is not to (a) induce self selection (b) induce the poor candidate to refuse the job (c) induce the good candidate to refuse the job (d) separate good workers from bad workers

9. (a) (b) (c)

Raiding a worker is selling your own worker to another firm offering to another firms worker to work for you illegal in Europe (d) always inefficient for the firm who makes the raid

10. What of the following is true (a) a firm should always match an outside offer (b) a firm should never match an outside offer (c) a firm should match an outside offer only of the worker is very valuable to the firm (d) a firm should match an outside offer only if the worker has some private information the firm wants to keep inside