Michelle Has Been Working at AdCo for Five Years

question 51

Multiple Choice

Michelle has been working at AdCo for five years.The company recently hired a new college graduate to work in a position very similar to Michelle's position.In a casual conversation with the new hire,Michelle discovers that the new employee is making $4,000 more annually than she is.What might Michelle's reaction be?

• A) Michelle may feel that the psychological contract has been broken.
• B) Michelle may feel that her job description no longer applies.
• C) Michelle may feel that her supervisor is not empathetic.
• D) Michelle may feel that her person-job fit cannot be improved.
• E) Michelle may feel that she has benefitted from the Hawthorne effect.

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Definitions:

Regressive

A term often used to describe taxes where the tax rate decreases as the taxable amount increases.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the tax rate applied to each additional dollar of income.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total tax amount by the total income.

Progressive

Progressive, in an economic context, refers to a taxation or policy structure where the tax rate increases as the taxable base amount increases, often aimed at reducing income inequality.