Leo Motors Bases a Worker's Pay on the Number of Units

question 90

True/False

Leo Motors bases a worker's pay on the number of units of output of the worker. This is called a piece-rate pay program.

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Definitions:

Economic Reasoning

The process of making decisions based on costs, benefits, and incentives in an effort to maximize benefits while minimizing costs.

Empirical Economics

The branch of economics that focuses on using data and statistical methods to test hypotheses and build economic theories.

Statistical Techniques

Mathematical methods applied to analyze, interpret, and make inferences from data.

Positive Statement

An objective statement that can be tested, based on factual information and data, without any value judgments.