The difference between a piece rate and an hourly rate is:
A) a piece rate is a wage for each piece of work completed whereas an hourly rate is a rate for each hour of work completed.
B) a piece rate is only offered for non-contractual workers whereas an hourly rate is only offered for contractual workers.
C) a piece rate is not tied to effort whereas an hourly wage is tied to effort.
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

A piece rate is based on the number of pieces of work completed, while an hourly rate is based on the number of hours worked. Piece rate workers are paid for each unit of output they produce, while hourly workers are paid for their time worked.

The Difference Between a Piece Rate and an Hourly Rate