Why Do Workers Tend to Choose Low Effort Levels When

question 118

Multiple Choice

Why do workers tend to choose low effort levels when they are compensated with fixed wage payments?

• A) Workers ignore the cost of effort.
• B) The net compensation after deducting the cost of effort is always higher when the worker provides low effort.
• C) Workers care more about the stability of income than the level of income.
• D) Workers tend to be risk averse and tend to choose low-intensity alternatives.

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Definitions:

Resilience

The ability of a person to adjust to or recover quickly from misfortune or change, showing mental toughness and adaptability.

Adversity

A state of hardship, difficulty, or misfortune that one encounters in life, which can challenge their resilience and coping mechanisms.

Middle Childhood

A developmental stage that covers the period from around 6 to 12 years of age, characterized by significant cognitive, emotional, and social development.

Shared Activities

Activities that are done together with others, fostering social interactions and cooperation.