The Reservation Wage

Multiple Choice

The reservation wage

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