Ask Question

What is the ratchet effect?

+2
Answers (1)
  1. 5 March, 12:03
    0
    The ratchet effect refers to a situation where workers subject to performance pay choose to restrict their output, because they rationally anticipate that firms will respond to higher output levels by raising output requirements or cutting pay.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the ratchet effect? ...” in 📗 Advanced Placement (AP) if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers