Sam and Jaoquim Both Have Delivered Pizzas Part Time for About

question 45

Multiple Choice

Sam and Jaoquim both have delivered pizzas part time for about six months and were evaluated much the same on their semiannual performance review. Jaoquim received a nylon jacket with the pizza company logo and Sam did not get one. Though Jaoquim felt badly about this, Sam was not upset. Using equity theory, which of the following statements is likely false?

• A) The nylon jacket is not a relevant outcome for Sam.
• B) Jaoquim is experiencing negative inequity.
• C) Sam is experiencing feelings of equity.
• D) Sam thinks Jaoquim works harder than Sam.

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Definitions:

Supply Shock

A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price.

Recessionary Gap

A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underperformance in the economy.

Aggregate Demand Curve

A graphical representation of the relationship between the total demand for goods and services in an economy at different price levels.

Long-Run Aggregate Supply

The total quantity of goods and services an economy can produce when resources are fully employed, assuming constant technology and factors of production.