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

question 52

Multiple Choice

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.

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Definitions:

Speculative Motive

The intention to hold cash or other assets in anticipation of profit from fluctuations in their prices or exchange rates.

Investment Opportunities

Options available to individuals and firms to invest capital with the intent to generate returns.

Bargain Purchases

Acquisitions made at a price significantly below the fair market value of the asset, resulting in an immediate gain for the purchaser.