1: All of the following are elements of the "new economics of personnel" theory involving the compensation of workers with the exception of:

A: The spot market for labour

B: Game theory (strategic behavior)

C: Monitoring costs

D: Asymmetric information regarding the worker's true productivity

E: Uncertainty

2: Fill in the blanks in the following sentence. In the framework of efficient labour contracts, principals refer to..........while agents refer to the..........

A: Customers; workers

B: Workers; employers

C: Employers; workers

D: Employers; governments

E: None of these above

3: The tournament prize mechanism is sometimes utilized to explain which of the following phenomena?

A: A compressed wage structure

B: The elicitation of effort from the worker

C: Pay that is matched closely to the worker's marginal productivity

D: Deferred compensation

E: Very high salaries that appear to be exorbitant paid to a few workers

4: All of the following are typical attributes of very highly paid corporate executives with the exception of:

A: Extremely able and successful at accomplishing a number of tasks

B: An ability to recognize problems and challenges at a detailed level

C: Very strong communication skills

D: Presence in high-variance industries in which decision making can have high payoffs

E: An ability to strategize and manage at a general level

5: What would likely occur if we were to ban mandatory retirement?

A: The productivity profiles would shift upward, as workers would become more productive throughout their career.

B: Wage profiles would more closely approximate the productivity profiles

C: There would be less monitoring and evaluation of workers

D: Labour force participation rates would fall

E: Many older workers would postpone their retirement