A Key Component of Equity Theory Is That Employees Compare

question 100

Multiple Choice

A key component of equity theory is that employees compare their own input/output ratios with the input/outcome ratios of other employees.What is the term for this phenomenon?

• A) psychological contract
• B) equity theory
• C) social contract
• D) social comparison
• E) social loafing

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Definitions:

Tax Revenue

The income that is collected by the government through the imposition of taxes on goods, services, and income.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, indicating how much tax will be paid on an additional dollar of income.

Laffer Curve

A theoretical representation of the relationship between tax rates and the amount of tax revenue collected by governments, suggesting that increasing tax rates beyond a certain point is counter-productive for raising tax revenue.

GDP

Stands for Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.