Explain Equity Theory

question 31

Essay

Explain equity theory. What does equity theory suggest people do when they feel they are not being treated fairly? Give an example of a situation from your own experience where a person felt he/she was being treated inequitably and explain it using equity theory.

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Definitions:

Unilateral Transfers

transactions in which something of economic value is provided by one party to another without receiving anything in exchange, such as foreign aid or remittances.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations and marked by significant battles, genocides, and the eventual victory of the Allies.

Currency Restrictions

Regulations or limits placed on the exchange or trade of a country's currency with others to control the currency's value and balance of payments.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net income transfers, indicating the flow of goods, services, and payments in and out of the country.