1. A wage higher than the market wage paid by a firm in order to increase worker productivity is A.
A compensating differential
B. the idea behind the minimum wage
C. an efficiency wage
D. is a dead weight burden production costs and profits
2. The real interest rate equals
A. the inflation rate minus the nominal interest rate
B. the nominal interest rate divided by CPI for the given year
C. the nominal interest rate plus the rate of inflation
D. the nominal interest rate minus the rate of inflation