190k views
3 votes
The asking wage is also known as the "reservation wage" - or the wage rate at which unionized workers are able to find gainful employment in a competitive labor market.

A. TRUE
B. FALSE

User Pavol
by
8.4k points

1 Answer

3 votes

Answer:

B) FALSE

Step-by-step explanation:

The reservation wage is the lowest wage at which an individual would accept to do a specific type of job.

While the asking wage is the wage level at which an individual will accept or reject any job offer.

The main difference between a reservation wage and an asking wage is that the reservation wage may vary depending on how much an individual likes or dislikes a certain job. For example, if a person dislikes working at night shifts, then the reservation wage for jobs requiring night shifts will be higher than jobs done during regular working hours.

User Kostyabakay
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.