Chapter 26. Cleveland Manufacturer Welds Together Job Security, Profits

26.1

When workers are paid according to the number of items produced, this is called:

variable wages.

variable cost.

piece work.

item-based salary.

At Lincoln Electric, workers are paid per ____ and shift lengths ____.

hour; are set at seven hours per day

year; vary based on demand

hour; are set at ten hours per day

item produced; vary based on demand

Lost production due to a long lunch break, as was shown in the video, is an example of:

variable cost.

fixed cost.

opportunity cost.

sunk cost.

The workers in video make a tradeoff, gaining ____ but _____.

experience; working harder than hourly workers

job security; working harder than hourly workers

job security; sacrificing annual bonuses

experience; sacrificing annual bonuses

At Lincoln Electric, workers’ performance ratings:

cannot be used to terminate employment, and reward cooperation.

cannot be used to terminate employment, and do not reward cooperation.

can be used to terminate employment, and reward cooperation.

can be used to terminate employment, and do not reward cooperation.