Equity Theory Is

question 18

Multiple Choice

Equity theory is:

• A)very powerful in predicting overall motivation.
• B)most powerful in predicting absenteeism and turnover, not levels of work productivity.
• C)not supported by research.
• D)most powerful in predicting work productivity, not levels of absenteeism and turnover.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Economic Resource

Assets or inputs used in the production of goods and services, including natural resources, human resources, capital, and entrepreneurship.

Aggregate Economic Rent

The total earnings that factors of production receive over and above their opportunity cost, representing the extra income derived from resource ownership.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change on an outcome.