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Part of a worker’s pay on an automobile assembly line is based on the number of cars in a pay period that come off the worker’s line and pass inspection. The remaining portion of the worker’s pay is an hourly wage that is fixed and only depends on the number of hours the employee works.
How does this incentive plan align the employee’s incentives with the firm’s? Is the inspection necessary?
What would you recommend to management if they asked you if they should inspect each individual employee’s work and pay based on the individual’s work rather than whether the car passed the final inspection (that is, what are the benefits and costs of paying, for instance, the windshield installer for the number of correctly installed windshields).
What decision making ability should the worker have in order to maximize the effectiveness of the incentive plans?
A federal government agency that purchases certain types of home mortgages, buys U. S. Treasury bonds from another government agency, elucidate how would this affect the net public debt, other things being equal.
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sust..
firm discriminates against females with a discrimination coefficient of 1.7. How many male workers will be hired?
Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cos..
Which of the following would definitely cause price to decrease (if they occurred simultaneously)?
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
Elucidate why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity.
which planet has the comparative advantage in coffee? in fried chicken?
Show the equilibrium effects on consumption and hours worked of and increase in G of this type are ambiguous but that output increases.
The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in the ..
What is the total market demand for polyglue at the price established by Alchem in Part (a)? How much of total demand do the follower firms supply?
q1. a plant has a capacity of 4100 hydraulic pumps per month. the fixed cost is 504000 per month. the variable cost is
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