Samuel, a Sales Associate at an Electronics Store, Learns That

question 51

Multiple Choice

Samuel, a sales associate at an electronics store, learns that his base pay is higher than any other sales associate in the store.He justifies his higher salary with the idea that he must be a top sales associate, generating more revenue than anyone else.This example demonstrates which of the following methods for reducing perceived inequity?

• A)Working harder, not smarter
• B)Changing outcomes
• C)Changing work effort
• D)Changing perceptions
• E)Leaving the job

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Definitions:

Price Level

refers to the average of current prices across the entire spectrum of goods and services produced in the economy.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, given the current price levels.

Aggregate Output

The total quantity of goods and services produced in an economy over a given period, often considered synonymous with real GDP.

Price Level

The standard price level of the wide variety of goods and services in the economy.