The Reservation Wage of Labour Is

question 113

Multiple Choice

The reservation wage of labour is

• A)the wage below which the labourer will be willing to work.
• B)the wage above which the worker would be willing to retire.
• C)the wage rate at which the firm would find it profitable to hire labour.
• D)the wage rate that makes it necessary for the firm to shut down rather than pay this wage to labour.
• E)the wage rate above which the worker would be willing to supply labour to the market.

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including physical currency and demand deposits.

Investment Curve

A graphical representation in economics showing the relationship between the rate of investment and factors such as interest rates, expected returns, or other economic variables.

Interest Rate

It's the percentage at which interest is paid by borrowers for the use of money that they borrow from lenders.

GDP

A synonym for Gross Domestic Product, it is the monetary measure of all final goods and services produced within a country's borders in a specific time period.