Which of the following is the most correct statement about piece rates?
A) A piece rate firm would attract less productive workers because piece rates reduce the incentive to work hard.
B) A piece rate firm would attract more productive workers because piece rates usually require some form of quality control.
C) A piece rate firm would attract less productive workers because piece rates do not work well when quality is important.
D) A piece rate firm would attract more productive workers because piece rates give productive workers a chance to earn more money.

Question

Quizplus · Accepted Answer

A piece rate compensation system pays workers based on the number of units they produce or tasks they complete, rather than on the number of hours worked. This creates a direct link between effort and pay, incentivizing workers to work harder and more efficiently. As a result, piece rate firms are more likely to attract more productive workers who are motivated to increase their earnings by producing more. Therefore, choice D is the most correct statement.

Which of the Following Is the Most Correct Statement About