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14 Jun 2026, 04:18
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
70% (01:28) correct
30%
(01:43)
wrong
based on 185
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Economic studies suggest that workers are generally more productive in firms that offer strong job security, since employees in such firms tend to be more focused and less anxious about job loss. However, in rapidly growing technology startups, productivity is often extremely high despite very weak job security and frequent turnover.
Which one of the following, if true, most helps to reconcile the apparent contradiction in the economist's claim?
A) Many technology startups offer employees stock options that become valuable only if the company performs well.
B) Employees in startups often work longer hours than employees in established firms.
C) Job security in large firms is sometimes overstated, since layoffs can still occur during economic downturns.
D) Some workers prefer unstable jobs because they enjoy variety and new challenges.
E) Productivity is measured differently in startups than in large established firms.
Which one of the following, if true, most helps to reconcile the apparent contradiction in the economist's claim?
A) Many technology startups offer employees stock options that become valuable only if the company performs well.
B) Employees in startups often work longer hours than employees in established firms.
C) Job security in large firms is sometimes overstated, since layoffs can still occur during economic downturns.
D) Some workers prefer unstable jobs because they enjoy variety and new challenges.
E) Productivity is measured differently in startups than in large established firms.
14 Jun 2026, 08:15
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Economic studies suggest that workers are generally more productive in firms that offer strong job security, since employees in such firms tend to be more focused and less anxious about job loss. However, in rapidly growing technology startups, productivity is often extremely high despite very weak job security and frequent turnover.
Which one of the following, if true, most helps to reconcile the apparent contradiction in the economist's claim?
The general claim is that job security can increase productivity by reducing anxiety. The apparent exception is that startups have weak job security but still high productivity. To reconcile this, we need another factor that can raise productivity in startups despite weak job security. The best answer gives startup employees a different strong incentive to work hard.
A) Many technology startups offer employees stock options that become valuable only if the company performs well.
This is correct. Stock options give employees a direct financial reason to be highly productive, even if job security is weak. This explains why startups can have high productivity despite lacking the usual job-security advantage.
B) Employees in startups often work longer hours than employees in established firms.
This may explain higher total output, but not necessarily higher productivity. More hours do not automatically mean more output per worker or per hour.
C) Job security in large firms is sometimes overstated, since layoffs can still occur during economic downturns.
This weakens the contrast somewhat, but it does not explain why productivity is extremely high in startups.
D) Some workers prefer unstable jobs because they enjoy variety and new challenges.
This could apply to some workers, but it is too vague and does not directly explain high productivity in rapidly growing startups.
E) Productivity is measured differently in startups than in large established firms.
This questions the comparison rather than reconciling the two facts. It suggests the apparent contradiction may be due to measurement differences, but does not explain why startup productivity is actually high.
Answer: (A)
Which one of the following, if true, most helps to reconcile the apparent contradiction in the economist's claim?
The general claim is that job security can increase productivity by reducing anxiety. The apparent exception is that startups have weak job security but still high productivity. To reconcile this, we need another factor that can raise productivity in startups despite weak job security. The best answer gives startup employees a different strong incentive to work hard.
A) Many technology startups offer employees stock options that become valuable only if the company performs well.
This is correct. Stock options give employees a direct financial reason to be highly productive, even if job security is weak. This explains why startups can have high productivity despite lacking the usual job-security advantage.
B) Employees in startups often work longer hours than employees in established firms.
This may explain higher total output, but not necessarily higher productivity. More hours do not automatically mean more output per worker or per hour.
C) Job security in large firms is sometimes overstated, since layoffs can still occur during economic downturns.
This weakens the contrast somewhat, but it does not explain why productivity is extremely high in startups.
D) Some workers prefer unstable jobs because they enjoy variety and new challenges.
This could apply to some workers, but it is too vague and does not directly explain high productivity in rapidly growing startups.
E) Productivity is measured differently in startups than in large established firms.
This questions the comparison rather than reconciling the two facts. It suggests the apparent contradiction may be due to measurement differences, but does not explain why startup productivity is actually high.
Answer: (A)
24 Jun 2026, 04:39
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A fits here because it gives an alternative motivation. Employees may be highly productive not because they feel secure, but because they have a strong financial incentive tied to the company's success.
So both facts can be true:
1.Job security often boosts productivity.
2.Startups can achieve high productivity through stock-option incentives instead.
So both facts can be true:
1.Job security often boosts productivity.
2.Startups can achieve high productivity through stock-option incentives instead.
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