A Worker's Reservation Wage Is

question 20

Multiple Choice

A worker's reservation wage is

• A) the minimum wage a worker must receive to join the labor force.
• B) the maximum wage a worker must receive to stay in the labor force.
• C) the minimum wage a worker must receive to decide to receive public assistance.
• D) the maximum wage a worker must receive to decide to receive public assistance.
• E) the wage at which a worker will switch from part time to full time employment.

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Definitions:

Affirmative Action

Policies or procedures intended to address historical inequalities and discrimination by providing advantages in education, employment, and other areas to groups that have been marginalized.

Federal Government

The national government of a federal state, which holds the authority to govern matters that affect the entire country, distinct from state or local governments.

American Firms

Companies or businesses that are based in the United States, operating either domestically or internationally, and governed by American laws and economic policies.

Personal Responsibility and Work Opportunity Reconciliation Act

A 1996 US federal law aimed at reforming welfare programs, encouraging work, and reducing dependency on government assistance.