Question

You are an owner of a coffee shop. Over the past few months you have noticed that one employee always arrives early and has the best rapport with the customers. You decide to give this employee a raise. Which factor determined the wage increase?
a) Ability to pay

b) Supply and demand

c) Social norms

d) Productivity

e) Education

Answer 1

Answer: d) Productivity

Explanation:

One of the reasons an employee may be promoted is their productivity. To the employer, increasing the salary of a productive employee makes sense because the salary increase would simply come from the increased revenue brought in by the productive employee.

The employee in this scenario shows a strong work ethic by arriving early and has the best rapport with customers which means that they are hardworking as this is what gets customers to notice employees. This productivity is the reason this employee's wages were increased.