question archive The lowest wage that a worker would accept if offered a job is called: a) the reservation wage
The lowest wage that a worker would accept if offered a job is called: a) the reservation wage
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The lowest wage that a worker would accept if offered a job is called:
a) the reservation wage.
b) a subsistence wage.
c) the exploitation wage.
d) the equilibrium market wage.
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The answer is a) the reservation wage.
The lowest wage that a worker would accept if offered a job is called the reservation wage. The worker would calculate the opportunity cost of leisure to arrive at his minimum wage rate and would not work below the reservation wage.
