Suppose Workers at a Firm Are Willing to Pay (In

question 11

Multiple Choice

Suppose workers at a firm are willing to pay (in foregone after-tax wages ) $1200 a year in order to get a fringe benefit.The worker's tax bracket is 40% (so that for every $1000 a firm pays a worker,they get $600 in after-tax take home pay) .If a firm gives the worker the fringe benefit and workers reduce their after-tax wage by $1200,how much is wage paid by the firm being reduced by?

• A) $2000
• B) $3000
• C) $1200
• D) $720

---

Definitions:

Ingratiation

A psychological technique in which an individual attempts to become more appealing to others through flattery or other forms of manipulation.

Perceptual Distortion

The misinterpretation or misrepresentation of a perceived stimulus, affecting judgment or decision-making.

Ingratiation

A psychological tactic involving deliberate efforts to win someone's favor by flattery or other means of making oneself personally likable.

Perceptual Distortion

Perceptual distortion refers to inaccuracies or misinterpretations of sensory input, caused by biases, preconceptions, or psychological influences, affecting how information is perceived and processed.