Fairness in regards to a worker's reference group is important in the labor market because
A) workers think it is unfair for employers to earn a profit.
B) workers care about their relative treatment.
C) employers must supervise most workers closely.
D) employers want to maximize profits.

Question

Quizplus · Accepted Answer

Workers care about their relative treatment in the labor market, which includes their reference group. They want to ensure that the wages, benefits, and working conditions they receive are fair in comparison to others in their reference group. Employers also need to consider fairness in order to maintain positive relationships with their employees and avoid issues such as turnover or low morale. While employers may want to maximize profits, fairness is an important consideration when it comes to maintaining a productive and effective workforce. Option A is incorrect as workers understand that employers must earn a profit to remain in business. Option C is incorrect as it is not directly related to fairness within a worker's reference group, and option D is only partially correct as employers do want to maximize profits, but fairness is also an important factor to consider for the reasons mentioned above.

Fairness in Regards to a Worker's Reference Group Is Important