Janice has just graduated from college and is seeking her first job. If she cannot find a job that pays at least $40,000 per year, she will instead travel to Africa to volunteer for a wildlife conservation organization. For Janice, $40,000 is her _____ wage.

Question

Quizplus · Accepted Answer

The reservation wage is the lowest wage rate at which a worker would be willing to accept a particular type of job. In Janice's case, $40,000 is the minimum she needs to be paid to choose a job over volunteering in Africa.

Janice Has Just Graduated from College and Is Seeking Her