GDP tends to . rev: 04_09_2018 Multiple Choice overstate economic welfare, because it does not include certain nonmarket activities such as the productive work of housewives understate economic welfare, because it does not take into account increases in leisure understate economic welfare, because it includes expenditures undertaken to offset or correct pollution overstate economic welfare, because it does not reflect improvements in product quality

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above