A household's reservation wage is the _______.
A) wage rate at which the household's income is largest
B) wage at which the household's labour supply curve bends backward
C) lowest wage rate at which the household will supply labour
D) highest wage rate at which the household will supply labour

Question

Quizplus · Accepted Answer

The reservation wage is the lowest wage rate at which a household is willing to supply labor, essentially the minimum amount they would accept to start working.

A Household's Reservation Wage Is the _______