The correct answer is: A. two
Taylor’s differential piece rate system is a wage payment system in which workers are paid a piece rate for each unit of output they produce, with a higher rate paid for output above a certain standard. This system is designed to encourage workers to produce more output, as they will earn more money for doing so.
Under this system, there are two rates: a base rate and a premium rate. The base rate is paid for all output below the standard, and the premium rate is paid for all output above the standard. The difference between the two rates is called the differential.
The differential is designed to be large enough to encourage workers to produce more output, but not so large that it causes workers to focus on quantity rather than quality. The exact size of the differential will vary depending on the industry, the type of work being done, and the level of skill required.
Taylor’s differential piece rate system has been criticized for being unfair to workers who are unable to produce at the standard rate. It has also been criticized for encouraging workers to take shortcuts and produce low-quality work. However, the system has also been praised for its ability to increase productivity.
Here are brief explanations of each option:
- Option A: Two rates are used to calculate wages under Taylor’s differential piece rate system. The base rate is paid for all output below the standard, and the premium rate is paid for all output above the standard.
- Option B: Three rates are used to calculate wages under Taylor’s differential piece rate system. This is incorrect, as there are only two rates.
- Option C: Four rates are used to calculate wages under Taylor’s differential piece rate system. This is incorrect, as there are only two rates.
- Option D: Five rates are used to calculate wages under Taylor’s differential piece rate system. This is incorrect, as there are only two rates.