Based on Equity Theory,when Employees Perceive They Are Under-Rewarded,they

question 18

Multiple Choice

Based on equity theory,when employees perceive they are under-rewarded,they

• A)exert more effort in performing their jobs in order to re-establish equity.
• B)will automatically quit the job and look somewhere else.
• C)will always exert more effort of higher quality to warrant an increase in rewards.
• D)will get disillusioned and automatically compare their job to some other job of lesser or equal value in an attempt to feel better about the inequity.
• E)may exert less effort,may ask for more compensation,and may choose a different referent person.

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreign residents over a certain period.

Equilibrium Real Interest Rate

The interest rate at which the demand for investment equals the supply of savings in an economy, without any inflation being considered.

Domestic Investment

Expenditure on capital within a country that is intended to improve the economy's future production capacity, such as factories, machinery, and infrastructure development.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign investments in domestic assets over a certain period.