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Sophia, a teacher from Vancouver, Washington, can compare her compensation to peers in the District of Columbia, where pay is much higher. According to equity theory, she should
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Sophia, a teacher from Vancouver, Washington, can compare her compensation to peers in the District of Columbia, where pay is much higher. According to equity theory, she should

User Zeigeist
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1 Answer

2 votes

Answer:

adjust for purchasing power and conditions existing in the local market

Step-by-step explanation:

the concept of Equity theory describes how resources can be distributed in a fair manner in comparison to others. Sophia has to adjust for what the money she receives can buy her and the prevailing conditions in the market in her own area. This is because in this theory, pay scale is affected by the purchasing power and condition of the market in whatever area that a person lives.

User Jontejj
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