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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A) It increases at the same rate as variable costs.
B) It decreases because variable costs are increasing.
C) It becomes increasingly higher as revenues increase.
D) It remains the same.

2. What best describes a use of strategic analysis?

A) Understanding your business and its competitive strengths and weaknesses
B) Pricing your products appropriately
C) Forecasting profit, growth and investment performance to develop realistic budgets
D) Evaluating prior year performance for the narrative portion of annual financial reports

3. Under the Equal Pay Act, which is an acceptable defense to justify differences between the rates of pay for men and women assigned to the same job?

A) All of the women have some professional certification or registration, whereas none of the men have comparable credentials.
B) The male employees have substantially more education than the female employees.
C) The differential is due to the fact that the men have more seniority with the employer.
D) The women are all graduates of the most prestigious schools, and graduates from those schools command higher salaries.

4. To establish disparate treatment in violation of Title VII of the Civil Rights Act of 1964, an employee must prove that the employer intentionally maintains the pay disparity because the employee is a member of a protected class and which of the following?

A) He or she is paid less than employees who are not members of the same protected group.
B) He or she receives a lower wage than a co-worker of the opposite sex.
C) The employer maintains a wage disparity between employees who do unequal, but comparable work.

5. Which of the following acts redefines guidelines for disparate impact cases?

A) Vocational Rehabilitation Act
B) Americans with Disabilities Act
C) Civil Rights Act of 1991
D) Age Discrimination in Employment Act

Solutions: