Sari, a Movie Theater Manager, Recently Implemented a Policy Stating

question 47

Multiple Choice

Sari, a movie theater manager, recently implemented a policy stating that workers who are willing to work a double shift on Friday or Saturday nights will earn a bonus on top of their regular pay. What is Sari implementing?

• A) sliding pay scale
• B) differential rate system
• C) skimming profit margin
• D) entitling employee payment
• E) piece-rate method

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Definitions:

Externalities

Externalities are indirect effects of economic activities on third parties, which can be either positive or negative.

Negative Externality

A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.

Acid Rain

Acid rain is precipitation with a high concentration of acidic components, typically resulting from industrial emissions that affect water, soil, and living conditions adversely.

Tradable Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution that can be bought and sold, aiming to reduce overall pollution in a cost-effective manner.