Piece rates benefit productive workers by giving them an opportunity to use their skills to make more money and benefit firms by increasing productivity more than wages.

Question

Quizplus · Accepted Answer

Piece rates are a form of payment where workers are paid based on the number of units they produce or tasks they complete, rather than receiving a fixed wage. This system can benefit productive workers who are able to produce more units in less time, allowing them to earn more money. Additionally, piece rates can incentivize workers to increase their productivity in order to earn more money, which can benefit firms by increasing the amount of output they can produce. Therefore, the statement that piece rates benefit productive workers and firms by increasing productivity more than wages is true.

Piece Rates Benefit Productive Workers by Giving Them an Opportunity