Piece Rate Systems Work Best When It Is Hard to Evaluate

question 150

True/False

Piece rate systems work best when it is hard to evaluate the worker's quality of output.

---

Definitions:

Negative Income Tax

A welfare system proposed to provide income support to individuals or families that earn below a certain level, effectively subsidizing their income to reach a minimum threshold.

In-kind Transfers

Non-cash payments or goods and services provided to individuals as part of government assistance programs, instead of cash.

Cash Payments

are transactions where the exchange of goods or services occurs via the physical exchange of currency, as opposed to credit or digital payment.

Minimum-wage Law

Rules determining the minimum legal hourly pay rate for employees by their employers.