Efficiency wages: A) can decrease costs if workers' ...

[cagreen833]

Efficiency wages:
 
  A) can decrease costs if workers' productivity varies directly with wage rates.
  B) can be used to reduce wage rigidity.
  C) can lead to wage rigidity.
  D) can increase profits if productivity of workers is fixed.

Question 2

If the price of a DVD falls,
  i. the demand curve for DVDs will shift rightward.
  ii. the demand curve for DVDs will not shift.
  iii. there will be a movement along the demand curve for DVDs.
 
  A) ii and iii B) iii only C) i only D) ii only E) i and iii

[livaneabi]

Answer to Question 1

C

Answer to Question 2

A

[cagreen833]

Excellent

[strudel15]

Gracias!