Consider That Extraneous Factors Might Affect a Worker's Performance

question 14

Multiple Choice

Consider that extraneous factors might affect a worker's performance. Why does pay based on performance increase the risk that the worker bears?

• A) The extraneous factors can degrade or enhance the worker's performance.
• B) The worker has asymmetric information about the extraneous factors.
• C) The extraneous factors are unpredictable.
• D) a and b.
• E) a and c

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Definitions:

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The process whereby businesses, culture, and information spread worldwide, leading to increased interconnectedness and interdependence.

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African-American

An ethnic group of Americans with total or partial ancestry from any of the black racial groups of Africa.