The Lowest Wage That a Worker Would Accept, If Offered

question 15

Multiple Choice

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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Definitions:

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and any other income earned as compensation for labor services.

Lump Sum Payment

A one-time payment for the total amount due, rather than breaking it down into multiple payments over time.

Leisure

The time individuals spend away from work or productive activities, often used for relaxation or recreational activities.

Wage Rate

The fixed amount of money or compensation paid to an employee by an employer in exchange for work performed.