Quiz 11 ECON 3100 Questions with Complete Solutions

To pay piece rates in order to elicit effort, it must be the case that Correct Answer-the firm can monitor individual worker output. Suppose a firm overpays its workers at the start of the job, and then the firm slowly lowers wages over time until eventually the firm pays the workers considerably less than the worker's marginal product of labor. What prevents this "reverse of a delayed-compensation scheme" from being implemented? Correct Answer-Workers would leave the job as soon as the firm tried to pay the worker less than his or her value of the marginal product. Which one of the following statements best describes profit sharing? Correct Answer-It provides a system by which workers receive a share of the firm's profits. Which of the following is not likely to help a firm motivate its workers to put forth more effort? Correct Answer-providing a free or subsidized company gym and/or cafeteria installing monitoring equipment providing competitive year-end bonuses implementing a profit-sharing scheme All of these are likely to motivate workers to put forth more effort.