Gale Works for 2 Hours and Earns $30

question 69

Multiple Choice

Gale works for 2 hours and earns $30. Allison also earns $30, but for 3 hours of work. Equity theory predicts which of the following might happen when Gale and Allison become aware of each other's earnings: I. Gale will ask for a raise
II. Allison will reduce her effort
III. Gale will reduce her effort
IV. Allison will ask for a raise
V. Allison will perceive an inequity

• A) I and IV
• B) II only
• C) II, IV, and V
• D) All but IV
• E) I, II, and III

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Definitions:

Financial Advantage

The benefit or edge gained by managing financial resources effectively, often leading to increased profits or reduced costs.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Beet Juice

A liquid extracted from beets, known for its nutritional benefits and potential use in food coloring and health drinks.

Refined Sugar

Sugar that has been processed to remove impurities and is typically found in a granulated form suitable for consumption.