Two Employees Are Performing the Same Job and Are Required

question 25

Multiple Choice

Two employees are performing the same job and are required to meet the same standards; however, one employee makes $2 per hour more for the job. According to which theory will the lower paid employee be unsatisfied because he feels he is being treated unfairly in comparison to his coworker?

• A) McClelland's needs theory
• B) Equity theory
• C) Expectancy theory
• D) Consistency theory

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Definitions:

Accounting Profit

The difference between total revenue and explicit costs.

Economic Profit

The difference between total revenue and total costs, including explicit and implicit costs.

Implicit Costs

The opportunity costs of using resources that a firm already owns to produce goods or services instead of earning money from these resources elsewhere.

Accounting Costs

Expenses recognized in a company's financial statements or accounts, representing outlays related to its operations and maintenance.