Which of the Following Is True According to Equity Theory

question 113

Multiple Choice

Which of the following is true according to equity theory?

• A)People have a higher tolerance for negative inequity than they do for positive inequity.
• B)Asking for a raise is one way an individual can increase his or her outcomes in the exchange process.
• C)Males have a lower tolerance for negative inequity than do females.
• D)Females have a lower tolerance for negative inequity than do males.
• E)Taking longer breaks at work is one way an individual can increase his or her inputs in the exchange process.

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Definitions:

Wage Rate

The standard amount of compensation given to employees for their labor, usually expressed per hour or per unit of work done.

Marginal Wage Cost

The additional cost incurred by hiring one more unit of labor, reflecting the change in total wage expenses.

Monopsonistic Labor Market

A labor market in which a single firm is the sole or dominant buyer of labor, giving it power to set wages below competitive levels.

Marginal Revenue Product

The additional revenue generated for each additional unit of input, such as labor or capital, used in the production process.