If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8
b. $7
c. just over $7
d. just under $7
a
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The gross domestic product (GDP) concept accounts for society's valuation of the relative worth of goods and services by using a ________.
A. utility measure B. monetary measure C. measure of volume D. measure of physical weight
A barrier to entry is
A) the economic term for diseconomies of scale. B) illegal in most markets. C) anything that protects a firm from the arrival of new competitors. D) a factor that increases competition because firms must continue to operate in the market in which they were founded. E) the same as rent seeking.
Explain how relatively high wages in the modern sector, as compared to the traditional sector, can lead to a coordination failure
What will be an ideal response?
As the average annual inflation rate ________, the volatility of inflation tends to ________
A) decreases; increase B) increases; increase C) increases; remain stable D) decreases; remain stable