The Reservation Wage

question 24

Multiple Choice

The reservation wage

• A)is the wage at which an unemployed worker is just indifferent to accepting a job and turning it down.
• B)is the wage paid to the reserve army of the unemployed.
• C)should be the same as the employment insurance benefit, if employment insurance is to be efficient.
• D)is the wage paid in the government sector.
• E)cannot be higher than the employment insurance benefit.

---

Definitions:

Conditions

Conditions typically refer to the circumstances or factors affecting the way in which people live or work, especially with regard to their safety or well-being.

Decisions

Choices made by individuals or groups after considering alternatives and outcomes.

Creativity

The ability to produce original and unusual ideas, or to make something new and imaginative.

Organization

A structured group of people who come together to meet a common goal, such as a business or charity.