Final answer:
Decreasing your own inputs is one way to address perceived inequity, but it may not be the most effective or sustainable solution. A well-funded social safety net aims to improve economic equality, which can have various effects on economic output depending on the extent of implementation, as depicted by a production possibility curve.
Step-by-step explanation:
When dealing with perceived inequity, one way is indeed to decrease your own inputs. This assertion aligns with the equity theory in organizational psychology, which states that when individuals perceive an imbalance between their input (effort, time, resources) and output (salary, rewards, recognition), they might adjust their input levels to restore balance. However, this is a short-term and potentially self-defeating strategy since it assumes that the overall inequity won't be addressed by changing the system or improving the outputs.
Regarding the hypothesis on a well-funded social safety net, it suggests that greater economic equality can be achieved through wealth redistribution, but with potential drawbacks. A production possibility curve can illustrate this tradeoff showing that while moving towards more economic equality (from point A to B), the total economic output might decrease. Various scenarios can unfold as seen in the curve; for instance, moving from point C to D might result in increased equality without a significant drop in economic output. Conversely, an overly aggressive move towards equality (from E to F) could detrimentally affect economic output.