But the important bits are:
1. The job gets done always. There is not an option for the child to say "keep your $2, I'd rather watch TV today."
2. If the job isn't done right, the child has to re-do or otherwise complete the job.
3. Complaints about the job, or failure to do the job promptly (ie. nagging), lead to deductions in allowance, but #1 still applies.
4. The size of the allowance and the size/number of chores are not directly related.
We also give the kids the option to change chores (within reason) - because the allowance isn't tied to specific chores. As they get older, they get more responsibility (more and/or more complex chores) but also more allowance.
Like I said, it seems to work well for us. The chores range from feeding the cats to doing a load of washing to helping cook dinner. They quickly learn that complaining about chores is a no-win situation, and accept that it's simply a part of week to week life.