Simon and Diana Perform the Same Work

question 36

Multiple Choice

Simon and Diana perform the same work. They are each paid the same, but Simon believes that Diana is paid more. In this case:

• A) Simon experiences negative inequity.
• B) Diana experiences negative inequity.
• C) Simon experiences overpayment inequity.
• D) Inequity does not exist, because both Simon and Diana receive the same pay for the same work.

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Definitions:

Costs

The expenditure of resources, such as time, labor, and materials, required to achieve an objective or the production of goods and services.

Profits

Profits are the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Entrepreneurial Ability

The skill or talent for identifying new business opportunities and the willingness to take risks to develop and manage a business.

Production Technique

The method or process used by a company or industry to create goods or services, often involving specific technologies or procedures.