According to the Global Watch, a recent study on Chilean bus drivers revealed that drivers who are paid by the number of passengers rather than by the hour were far more productive because:
A)bus drivers do not like to work that hard.
B)bus drivers are responding to average costs.
C)bus drivers don't like to work on the clock-getting paid by the hour.
D)bus drivers, like most of us, respond to incentives.

Question

According to the Global Watch, a recent study on Chilean bus drivers revealed that drivers who are paid by the number of passengers rather than by the hour were far more productive because:
A)​bus drivers do not like to work that hard.
B)​bus drivers are responding to average costs.
C)​bus drivers don't like to work on the clock-getting paid by the hour.
D)bus drivers, like most of us, respond to incentives.

Quizplus · Accepted Answer

The study found that Chilean bus drivers who were paid by the number of passengers were more productive, which suggests that they were responding to the incentive of earning more money by carrying more passengers. This aligns with the economic principle that people respond to incentives. Option A and C are not supported by the information given in the question, while Option B is too vague and does not directly address the productivity of the drivers.

According to the Global Watch, a Recent Study on Chilean