Final answer:
The statement is true that a range test on time card records for a pay period acts as a safeguard in payroll systems. It ensures no employee exceeds the maximum allowed work hours, thereby maintaining accurate payroll operations and compliance with labor laws.
Step-by-step explanation:
An input control that tests time card records to verify that no employee has worked more than 50 hours in a pay period is indeed an example of a range test. This is a validation technique used in payroll systems to ensure that employees' worked hours are within a specified range, thus preventing potential overwork or payroll fraud. It is essential for enforcing labor regulations and maintaining accurate payroll records. The given statement is therefore True.
In the context of incentive programs, such as those that modify government payments based on earnings, the effect on work incentive can vary. Some individuals may opt to work less yet earn more, which is represented by a point on the new budget line, such as point S. Others may continue to work the same amount, represented by point R, or even choose to work more. These decisions are influenced by changes to their budget constraint and reflect how they value income versus leisure time.