1. The teacher had the students divide into groups and make boats out of paper within 5 minutes to introduce the concept of a piece rate system. 2. Under a piece rate system, workers are paid based on the number of units they produce rather than the time spent working. Their wages are calculated as Wages=Quantity x Rate per unit. 3. Some suitable situations for a piece rate system include repetitive work, work with more physical than mental effort, and work that is difficult to supervise closely.