Which of the following is not true regarding the incentives different pay structures impose on workers?
A) Piece rates are an option when individual output is easily measured by firms.
B) Tournaments can elicit more effort than a time rate.
C) Worker effort can be a function of the pay structure.
D) Worker productivity is unrelated to the pay structure.
E) Profit sharing is a pay structure designed to elicit more effort from workers, but it can suffer from free-riding.

Question

Quizplus · Accepted Answer

Worker productivity is often directly related to the pay structure, as different pay structures (such as piece rates, tournaments, profit sharing) are designed to motivate workers in various ways, influencing their effort and productivity.

Which of the Following Is Not True Regarding the Incentives