Equity exists when one's own outcomes-to-input ratio ________ that of the referent
A) is greater than
B) is less than
C) is equal to
D) is greater than or less than
Answer: C
Explanation: Equity in the equity theory exists when a person's job situation is fair: the outcomes-to-input ratio of what he or she actually gets matches what he or she would expect to get as compared to the referent. The other choices are incorrect because they all identify situations of inequity. "Is greater than" identifies a situation of over-reward, "is less than" a situation of under-reward, and "is greater than or less than" a situation of both under- and over-reward. Only "is equal" identifies an equity situation, so it is the correct response.
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