As an experienced uncle, you have learned much about "hiring" your nieces and nephews to help you with chores in order to earn e
xtra money. For example, to minimize disputes and maximize productivity, you create a list of specific tasks and what you will pay for the completion of each task. In doing so, you are relying on __________.
As per the given description, the creation of a list of particular tasks and what would be rewarded in return for the accomplishment of these tasks implies that the uncle is relying on 'equity' as each individual would be paid or rewarded with the benefits according to his/her proportion of contribution in the accomplishment of the task.
This implies that relying on 'equity' assists him in taking the decision objectively while distributing the benefits among the nieces as per the part played by them in completing the task. Thus, <u>'equity'</u> is the correct answer.
Equity can be defined as a quality of being fair and impartial.
<u>In economic terms, the term equity is defined as the distribution of benefits according to the contribution made by each person.</u>
In the given case, uncle has made a task list and according to this the one who will do more tasks will receive accordingly. This means that there will be no unfairness or partiality in the distribution of benefits among his nieces.
