According to Equity Theory

question 80

Multiple Choice

According to equity theory:

• A)we compare ourselves with a comparison other only when we are certain that inequity exists.
• B)our comparison other never exists in real life.
• C)our comparison other is always someone in another organization.
• D)we choose people as comparison others only when we know that they receive fewer outcomes than we do.
• E)none of these statements are truE.

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Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price-taking behavior.

Market Price

The existing rate at which an asset or service may be acquired or disposed of on the market.

Utility Consumption

The enjoyment or satisfaction gained by using a good or service.

Factor Markets

Markets where resources, such as labor, capital, and land, are bought and sold.