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:

Overexpansion

The rapid and often uncontrollable growth of a business, territory, or economy, which can lead to inefficiency, unmanageability, and financial problems.

American Railroads

A network of rail transport that significantly contributed to the economic development and westward expansion of the United States throughout the 19th and 20th centuries.

Railroad Industry

The railroad industry encompasses companies that operate railroads, which are large networks of track on which trains travel to transport goods and passengers.

Regulation

The government's imposition of rules within a market to promote fairness, stability, and efficiency, often to protect the public interest.