Figure 14.5 Figure 14.5 Shows Two Different Compensation Schemes for the Safelite

question 8

Multiple Choice

Figure 14.5

Figure 14.5 shows two different compensation schemes for the Safelite Glass Corporation, an installer of auto glass windshields. Under Scheme I, the firm pays a consistent wage of $160 per day based on an 8-hour workday. Qmᵢn represents the cut-off point under the hourly-wage system: if a worker installed fewer than Qmᵢn windshields, the worker got fired. Scheme II represents a piece-rate scheme with an earnings floor: no worker would get less than $160 per day (for an 8-hour workday) and would have to produce at least Qmᵢn. For any output level beyond Q* the worker earned an additional $20 for each unit produced.
-Refer to Figure 14.5.Under Scheme I,

• A)workers compete with each other to see who can produce beyond Qmᵢn in the shortest possible time.
• B)workers have no incentive to produce beyond Qmᵢn.
• C)workers signal their productivity to the firm by consistently producing above Qmᵢn.
• D)the incentive to increase productivity depends on where Qmᵢn is set; if it is at a very high level, then workers will rise to the challenge for fear of losing their jobs.

Understand the importance of cultural diversity and the negative impact of ethnocentrism.

Recognize the variation of norms of social behavior across different cultures.

Grasp the basic concepts of evolutionary psychology and natural selection in psychological processes.

Differentiate between the roles and capabilities of clinical psychologists and psychiatrists.

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Definitions:

External Events

Occurrences or incidents outside an individual's control that impact their feelings, thoughts, or actions.

Fight or Flight Syndrome

A physiological reaction to perceived danger, where the body prepares to either confront the threat or escape from it.

Tend and Befriend Syndrome

A behavioral response to stress that involves seeking social support and nurturing others.

Female Rats

Female rats are the adult females of the rat species, studied in research and experiments for various scientific and medical purposes.