Equity Theory Predicts That When Bob Finds Out That Amanda,a

question 81

Multiple Choice

Equity theory predicts that when Bob finds out that Amanda,a referent other,earns more money,he will

• A)definitely feel inequitably treated.
• B)change his inputs.
• C)be upset with Amanda.
• D)possibly feel inequitably treated.
• E)look for another job and encourage Amanda to do the same.

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Definitions:

Producers

Entities or individuals involved in the creation of goods or services for the market.

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.

Excise Tax

A tax directly levied on certain goods, such as alcohol and tobacco, by a government entity.

Transactions

The process of exchanging goods, services, or financial instruments between parties.