The rule of reason would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws

Refer to Figure 15-14. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?

A) increase the required-reserve ratio B) sell Treasury bills C) decrease income taxes D) buy Treasury bills

The idea of paying workers an efficiency wage is that

a. employers will find it profitable to hire more workers. b. workers receive wages consistent with their specific compensating differentials. c. workers and management gain at the expense of the stockholders of the company. d. workers have the incentive to work harder, thus increasing their marginal productivity.