What Would Be the Predicted Result of Overpaying a Piece-Rate

question 29

Multiple Choice

What would be the predicted result of overpaying a piece-rate worker, according to equity theory?

• A) Quality will increase.
• B) Quantity will increase.
• C) Quality will decrease.
• D) There will be no effect.
• E) The employee will seek a higher wage.

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Definitions:

Colonial Power

A country that establishes control over foreign territories to exploit them economically, politically, and culturally.

Manufactured Products

Goods that have been processed or transformed from raw materials into finished goods ready for sale.

Raw Materials

Basic materials extracted from the environment or that are used in the initial stages of production to make goods.

Tariffs

Taxes levied on imported goods and services, intended to make imported goods more expensive to protect domestic industries.