When does it make sense to offer a worker a piece-rate contract?
What will be an ideal response?
Piece-rate contracts require that a worker's output can be measured, that the right behavior is elicited, and that workers can be persuaded to accept the contract. Workers like teachers or managers, whose output is difficult to measure, are not good candidates for piece rates. When quality is more important than quantity, such as with medical care, piece-rate contracts are not good. In terms of eliciting the right behavior, workers who are poorly monitored can overstate the work done or needed. Finally, workers may not accept the contract out of fear that their incomes may eventually fall.
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Under a fixed exchange rate regime, suppose there is a reduction in housing wealth that causes a reduction in consumption. This wealth-induced reduction in consumption will cause
A) a reduction in investment. B) an increase in net exports. C) a reduction in imports. D) all of the above E) none of the above
Changes in the ________ market affect the shape of the short run aggregate supply curve.
A. money B. goods C. financial D. labor
Assets of the commercial banking system include:
A. deposits. B. reserves and loans. C. loans and deposits. D. reserves and deposits.
The services British capital provides in Spain are a service export from Britain
A) therefore they are subtracted from British GDP in calculating British GNP. B) therefore they are added to Spanish GDP in calculating Spanish GDP. C) therefore they are added to British GDP in calculating British GNP. D) therefore they are added to Spanish GNP in calculating Spanish GDP. E) therefore they are subtracted from Spanish GNP.