When People Perceive an Imbalance in Their Outcome-Input Ratio Relative

question 104

Multiple Choice

When people perceive an imbalance in their outcome-input ratio relative to others, ________.

• A) reinforcement theory is imbalanced
• B) expectancy theory is violated
• C) equity tension is created
• D) distributive justice is questioned
• E) they seek to move to another position of authority

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Definitions:

Implicit Cost

A cost that does not require the outlay of money; it is measured by the value, in dollar terms, of forgone benefits.

Explicit Cost

A cost that requires an outlay of money.

Economic Profit

Revenue minus the opportunity cost of resources used; usually less than the accounting profit.

Accounting Profit

Revenue minus explicit cost.