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).
-The results of the experiment discussed in this Application show the differences in productivity from the threat of having a bonus taken away for not meeting a production target and the promise of receiving a bonus for meeting a production target. These results describe the economic concept of
A)using assumptions to simplify.
B)ceteris paribus.
C)marginal thinking.
D)rational self interest.

Question

Quizplus · Accepted Answer

The experiment illustrates the concept of rational self-interest, where workers are motivated by personal gain, responding to incentives such as bonuses.

Recall the Application About the Experiment in Which Chinese Factory