economics terms

Reservation Wage Rate

In a model involving possible labor force participation, the reservation wage rate is the minimum wage rate at which an agent will accept employment.  The reservation wage rate is generally greater than zero because the agent's alternatives to paid employment have positive value.  The alternatives might be taking care of children (rather than paying for child care services), pursuing education, or simple leisure.

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Economics Terms

Arbitrage Pricing
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Average Cost
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Budget Constraint
Call Option
Concave Function
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Economic Agent
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Economics Textbook
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Unemployment Rate
Utility Function
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