Tournaments can tie rewards more closely to actions that an agent controls thereby:
A) increasing effort and employee risk.
B) reducing shirk and slack in the economy.
C) improving productivity and employee pay.
D) reducing productivity and employee pay..

Question

Quizplus · Accepted Answer

Tournaments can motivate employees to improve their productivity and perform better in order to receive rewards. This can lead to an increase in productivity and employee pay, as rewards are tied closely to actions that the agent controls. Additionally, tournaments can help to create a sense of competition among employees, which can drive them to work harder and take more risks in order to win.

Tournaments Can Tie Rewards More Closely to Actions That an Agent