First-price auctions have all the following properties EXCEPT
a. Highest bid wins
b. Highest bidder pays her winning bid
c. The good is assigned to the second-highest bidder
d. The price is set to the highest bid
c
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A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve
A) the money wage rate B) technology C) the quantity of capital D) the price level
Which of the following statements about private and social costs is TRUE in the presence of negative externalities created by pollution?
A) Competitive market produces excessive pollution. B) The optimal amount of pollution is zero. C) Social costs exclude externalities. D) Social producer surplus exceeds private producer surplus.
If the resource market is perfectly competitive:
a. the market demand for the resource is perfectly elastic. b. the market demand for the resource is perfectly inelastic. c. the suppliers can affect the input price by increasing or reducing their supply. d. the input price to each firm is constant. e. the supply of the resource is perfectly inelastic.
Which of the following tax structures creates a disincentive to earn more?
a. Proportional tax structure b. Regressive tax structure c. Digressive tax structure d. Progressive tax structure e. A combination of proportional and regressive tax structure