Asked by shelby hulka on Jun 04, 2024
Verified
Consider an apple orchard owner deciding how to incentivize his fruit pickers.He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons.As a consequence
A) The compensation rate should be fixed at all times
B) The pickers might try to game the system by discouraging others from harvesting too much
C) The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons
D) None of the above
Compensation Rate
The amount of money or benefits given to an employee in exchange for their work or service.
Harvest Seasons
The time periods during the year when crops are ripe and harvested, varying by geographical location and type of crop.
Game The System
Utilizing the rules and guidelines of a system in a way that manipulates or exploits loopholes for personal benefit.
- Analyze the consequences of different compensation schemes during varying economic conditions.
Verified Answer
JG
Jenny GuerreroJun 06, 2024
Final Answer :
B
Explanation :
If the compensation rate is adjusted higher during poor harvest seasons, pickers might try to game the system by discouraging others from harvesting too much in order to keep the harvest low and the compensation rate high. This could lead to a decrease in overall productivity and is not an ideal situation for the orchard owner.
Learning Objectives
- Analyze the consequences of different compensation schemes during varying economic conditions.
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