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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
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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
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