Final answer:
The statement reflecting equity theory is that people monitor the fairness of their work environment. Equity theory focuses on the fairness of both effort expended and compensation received. Societal norms and economic theories contribute to variations in income but aspire towards equitable outcomes.
Step-by-step explanation:
The statement that accurately reflects equity theory is: People continuously monitor the degree to which their work environment is fair. Equity theory posits that individuals seek to balance what they put into their jobs (input) with what they get out of it (output) and compare this balance with others as a measure of fairness.
In employment settings, this includes effort and compensation factors; where effort means people should be rewarded according to the effort they expend in their work activity, and compensation is about people being rewarded according to the costs they incur in their work activity. In a fair work environment, economic systems aim to achieve equitable outcomes, including equal pay for equal work or preventing workplace discrimination.
Economic theories suggest the provision of resources according to people's needs, while utilitarian principles drive towards economic efficiency and rewarding people per their contribution to economic activity. Most societies, including the United States, do not aim for absolute income equality due to varying preferences and longstanding societal norms such as the reward for individual hard work, which is seen as the path to social mobility.