With Regard to the Use of Tests in the Selection

question 119

Multiple Choice

With regard to the use of tests in the selection process:

• A)They should always be used in the selection process.
• B)They are usually very good predictors of performance.
• C)They can contribute to a company's policy of non-discrimination.
• D)They should be used as the final hurdle in the selection process.
• E)Typically,standardized tests developed by external firms are more costly than tests developed internally by the company.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable, typically resulting from taxes or price controls.

Rent Ceiling

A form of price control where a maximum limit is placed on the rent that can be charged for housing.

Equilibrium Rent

The rental price at which the quantity of properties landlords are willing to lease equals the quantity that tenants are willing to rent.

Quota

A type of trade restriction that limits the quantity of a good that can be imported or exported during a specific time period.