Recall the Application about the experiment in which Chinese factory workers were divided into groups
and offered bonuses for their production output to answer the following question(s).
-According to the Application, workers who were told they would lose their bonuses if their output fell short of the production target were more productive than those workers who were offered a bonus if they met the production target. This is an example of which element of the economic way of thinking?
A)responding to incentives
B)thinking at the margin
C)isolating variables
D)using assumptions to simplify

Question

Quizplus · Accepted Answer

This scenario illustrates "responding to incentives," as it shows how workers' productivity is influenced by the structure of the bonus system, highlighting their response to potential gains or losses.

Recall the Application About the Experiment in Which Chinese Factory