Research on Equity Theory Suggests

question 35

Multiple Choice

Research on equity theory suggests

• A)those who perceive inequity increase their work performance.
• B)those who feel over-rewarded experience little distress over the situation.
• C)those who feel over-rewarded experience guilt over the situation.
• D)those who perceive inequity encourage their fellow coworkers to work less hard.

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Definitions:

Equity

Fairness.

Zero-Profit Equilibrium

A situation in a competitive market where each firm earns exactly what it spends, leaving no net profit.

Average Cost

The aggregate expense of manufacturing, when divided by the total goods manufactured, denotes the unit cost.

Communication

The exchange of information or messages between individuals through various channels and mediums.