The Reservation Wage Is

Multiple Choice

The reservation wage is:

A) the lowest wage firms are allowed by law to pay workers.
B) the wage that an employer must pay workers to reduce turnover to a reasonable level.
C) the wage offer that ends a labour strike.
D) the wage that ensures a laid off individual will wait for rehire, rather than find another job.
E) the wage that would make an individual indifferent between working or not working.