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.

Question

Quizplus · Accepted Answer

The reservation wage is the lowest wage that a worker would accept if offered a job. This is because the worker is not willing to work for any amount lower than their reservation wage. Option B, a subsistence wage, refers to a wage that is just enough for a worker to survive on, which may be higher or lower than their reservation wage. Option C, the exploitation wage, refers to a wage that is unfairly low and takes advantage of the worker, while option D, the equilibrium market wage, refers to the wage where the amount of labor supplied and the amount demanded are equal, which may or may not be the same as the reservation wage.

The Lowest Wage That a Worker Would Accept, If Offered