The Price of a TV Set Was $600 in 1999

question 35

Multiple Choice

The price of a TV set was $600 in 1999. In 2003 it was priced at $520. If the CPI in 1999 was 123 and 2003 is the base year, has the TV set become cheaper or more expensive in real terms in 2003?

• A)Real-dollar cost of the TV set has not changed.
• B)Real-dollar cost of the TV set has increased by 6.6%.
• C)Real-dollar cost of the TV set has decreased by 6.6%.
• D)Real-dollar cost of the TV set has decreased by 15.8%.
• E)Real-dollar cost of the TV set has increased by 15.8%.

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Definitions:

Equity Theory

A theory of motivation that suggests individuals assess their own input-to-outcome ratios in comparison to others as a measure of fairness in relationships or work situations.

Content Theory

A theory that focuses on identifying and understanding the specific needs that motivate individuals to act in various ways.

J. Stacy Adams

Is known for developing the Equity Theory of motivation, which explains how individuals assess their job satisfaction and motivation through perceived fairness in the workplace.

Positive Inequity

A situation where an individual perceives they are receiving more than they believe they should in comparison to others, leading to a sense of unfair advantage.