Case 10.1​ ​

question 33

Multiple Choice

Case 10.1​
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Antonio's company has an employee orientation program;has an extensive employee performance review program;and encourages managers to praise,write letters of appreciation for jobs well done,and take the time to listen to their employees.Years ago,the company began a positive reinforcement program.Managers were initially reluctant to support the program because they expected employees to begin demanding pay raises.But the company kept working at it,and eventually the program was accepted.Then,in order to increase quality and productivity,assembly-line workers were paid based on piecework for each acceptable component that they built.When the incentive programs were first introduced,employees competed with each other,teamwork was destroyed,and interpersonal relations dropped to an all-time low.Now the incentive programs and other positive reinforcement programs seem to be working.However,due to cutbacks in management levels and increasing work demands,managers are finding it harder and harder to determine which employees most deserve recognition.
-Refer to Case 10.1.The company's payment of assembly-line workers for piecework is an example of​

• A) ​profit sharing.
• B) ​gain sharing.
• C) ​confirmations.
• D) ​production incentives.

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Definitions:

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.

Excise Tax

A tax directly levied on certain goods, such as alcohol and tobacco, by a government entity.

Transactions

The process of exchanging goods, services, or financial instruments between parties.

Demand Curve

The demand curve is a graphical representation showing how the quantity demanded of a good or service varies with its price, typically sloping downward from left to right.