Figure 17-5

question 100

Multiple Choice

Figure 17-5
Figure 17-5 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 $80 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 $80 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 17-5.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.

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Definitions:

Pinching

The act of squeezing the skin and flesh between the thumb and a finger, which can be gentle or forceful.

Proximity-Seeking

Describes a behavior observed primarily in children, where they seek physical or emotional closeness to their caregivers for safety and security.

Contact-Maintaining

The behaviors or strategies employed to keep in touch or stay connected with others.

Attachment

is an emotional bond that forms between individuals, crucial for personal development, especially between a child and their caregiver.