Which of the following statements is TRUE?
I. Tournament compensation does not depend on factors outside the worker's control, such as the state of the economy.
II. Tournament compensation increases the risk that workers will receive low pay in a bad economy.
III. Tournament compensation can increase worker effort when external factors cause poor performance.
A) II only
B) I only
C) II and III only
D) I and III only

Question

Quizplus · Accepted Answer

Statement I is true because tournament compensation is based solely on the worker's performance relative to their colleagues, regardless of external conditions. Statement II is also true because in a bad economy, there may be fewer rewards to distribute, which means that workers who are not at the top of the tournament may receive lower pay. Statement III is true because workers who are not at the top of the tournament may increase their effort to improve their performance and potentially earn a higher reward.

Which of the Following Statements Is TRUE