Explain Adams' theory of inequity.

Answers will vary. Adams' theory of inequity suggests that people are motivated when they find themselves in situations of inequity, or unfairness. Inequity occurs when a person receives more or less than she believes she deserves based on her effort and/or contribution. Inequity creates tension, which in turn motivates a person to take action to resolve the inequity.
Adams considers a situation in which there is inequity in only one variable to be a first level of inequity. A more severe, second level of inequity would occur, for example, in a situation where the inputs of a person experiencing negative inequity are also greater than those of the comparison other. Inequalities in one (inputs or outcomes)coupled with equality in the other (inputs or outcomes)are experienced as a less severe inequity than inequalities in both inputs and outcomes. One drawback of Adams's theory is that it does not provide a way of determining whether some inputs or some outcomes are more important than others. Please see the section "Social Exchange and Equity Theory" for more information.