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What Would a Person Do If the Market Wage Is

Question 1

Multiple Choice

What would a person do if the market wage is less than his or her reservation wage?


A) The person will enter the labor market.
B) The person will work as much as possible.
C) The person will work more hours as the wage falls further.
D) The person will be unemployed.
E) The person will not participate in the labor force.

Correct Answer:

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