Which of the following is not true regarding the incentives different pay structures impose on workers?
A. Piece rates are an option when individual output is easily measured by firms.
B. Tournaments can elicit more effort than a time rate.
C. Worker productivity is unrelated to the pay structure.
D. Profit sharing is a pay structure designed to elicit more effort from workers, but it can suffer from free-riding.
E. Worker effort can be a function of the pay structure.
Answer: C
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