Scenario: Pat works in a factory that produces jams, jellies, and marmalades. His job is to check whether each pack of marmalade is sealed before it is dispatched for sale. Several other workers in the factory do the same job. Therefore, it is not possible for the manager of the factory to keep track of the number of packs each worker actually inspects.
-Refer to the scenario above.In this case,the employer may prevent shirking by ________.
A) paying an efficiency wage to each worker
B) paying a wage less than the minimum wage
C) reducing the nominal wage paid to workers
D) reducing the real wage paid to workers

Question

Quizplus · Accepted Answer

By paying an efficiency wage to each worker, the employer can incentivize them to put in more effort and do a better job of inspecting the marmalade packets, even if the manager is unable to directly monitor their individual performance. This can help prevent shirking and ensure that all workers are doing their best to maintain quality control. Choices B, C, and D all involve reducing wages, which may have negative consequences for worker morale and motivation, and may do little to prevent shirking if workers feel unfairly treated.

Scenario: Pat Works in a Factory That Produces Jams, Jellies