A worker will accept a job offer, if the real wage offer is above:
A)the worker's effective real income when unemployed, .
B)the wage the worker earned in their last job.
C)the worker's reservation wage.
D)the average wage in the economy.

Question

A worker will accept a job offer, if the real wage offer is above:
A)the worker's effective real income when unemployed, . 
B)the wage the worker earned in their last job. 
C)the worker's reservation wage. 
D)the average wage in the economy.

Quizplus · Accepted Answer

The worker's reservation wage is the lowest wage they would be willing to accept for a job. If the real wage offer is below the reservation wage, the worker would prefer to remain unemployed. Therefore, they would accept the job offer only if the real wage offer is above their reservation wage. Options A, B, and D do not take into account the worker's reservation wage.

A Worker Will Accept a Job Offer, If the Real