When Executives Manipulate Personnel Records to Keep or Acquire Key

question 49

Multiple Choice

When executives manipulate personnel records to keep or acquire key company personnel,this is an example of

• A) Moral hazard problem
• B) Adverse selection
• C) Self-concept
• D) Concern for quality

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Definitions:

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Average Product

The output per unit of input, such as labor or capital, calculated by dividing total output by the total quantity of the input.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Capital/Labor Ratio

The capital/labor ratio is a measure used in economics to indicate the amount of capital relative to the quantity of labor used in the production process.