A piece rate system ________ earnings inequality.
A) has no effect on
B) increases
C) decreases
D) first increases then decreases

Question

Quizplus · Accepted Answer

A piece rate system pays workers based on the number of units produced, which means that fast and efficient workers will earn more than slower workers. This creates a wider gap in earnings between the highest and lowest-performing workers, ultimately increasing earnings inequality.

A Piece Rate System ________ Earnings Inequality