Which of the Following Is a Limitation in the Use

question 11

Multiple Choice

Which of the following is a limitation in the use of simulation tests?

• A)Much care must be taken in the construction of work sample tests to ensure their representativeness of job activity.
• B)Inferences of the applicant's future job performance must be made from only verbal information.
• C)The carryover from verbal description to job performance needed in performance tests is not always complete.
• D)The data are subject to willing distortion or faking by the applicant.

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Definitions:

Economic Profit

The difference between revenue generated from output and the opportunity costs of inputs used, considering both explicit and implicit costs.

Accounting Profit

The profit of a company after all expenses have been deducted from revenues, but before deducting income taxes.

AVC (Average Variable Cost)

The total variable cost divided by the quantity of output produced; it varies with production.

MC (Marginal Cost)

Marginal Cost is the change in total cost that arises when the quantity produced is incremented by one unit.