Which of the Following Theories Alludes to the Importance of Pay

question 82

Multiple Choice

Which of the following theories alludes to the importance of pay and suggests that pay should be based on performance:

• A)Equity theory
• B)Goal-setting theory
• C)Expectancy theory
• D)Needs theories
• E)All of these choices are correct

---

Definitions:

Deadweight Loss

Deadweight loss is the loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.

Price Floor

A minimum price set by the government for certain goods and services, below which they cannot be sold, aimed at protecting producers.

Government Purchases

Expenditures made by the government for goods and services that affect the economy, including investments and spending on infrastructure, healthcare, and education.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to market price.