Which of the Following Concepts Is Explicitly Considered by Equity

question 63

Multiple Choice

Which of the following concepts is explicitly considered by equity theory?

• A)Comparison other
• B)Outcome/input ratio
• C)Effort-to-performance expectancy
• D)All of the answers are correct.
• E)Comparison other and outcome/input ratio

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Definitions:

Adverse Selection

A situation where sellers have more information than buyers, leading to high-quality goods and services being squeezed out of the market because they cannot be adequately priced.

Private Information

Information that some people have, but others do not.

Economic Decisions

Choices made by individuals, businesses, or governments involving the allocation of resources to satisfy their needs and desires.

Correlated Risks

Risks that are linked in such a way that the occurrence of one affects the likelihood of the occurrence of another.