The wage set by a worker searching for a job such that, if that wage or more is offered, it will be accepted, and the worker will stop searching is known as the
A) optimal reservation wage
B) optimal acceptance wage
C) maximum discounted wage

Question

Quizplus · Accepted Answer

The optimal reservation wage is the wage at which a worker is indifferent between accepting a job offer and continuing to search for a better one. It is the minimum wage that the worker will accept and is the best choice among the given options.

The Wage Set by a Worker Searching for a Job