When auctions, such as those used on eBay, are used to sell a product, then:
A. consumers have an incentive to bid above their true reservation prices.
B. information about consumers' true reservation prices is revealed.
C. information about consumers' true reservation prices is minimized.
D. consumers have an incentive to bid below their true reservation prices.
Answer: B
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The "middle-class" ideal that developed in the early 19th century included which of the following elements?
(a) Women were socially and legally equal to men and were encouraged to choose between working and staying in the home (avoiding wage-labor in the factories). (b) Men were to be the income earners providing for the family's material needs while women were to play a greater role regarding the family's spiritual needs. (c) Apprenticeships, rather than public schools, would better serve the need of preparing children for middle-class careers. (d) Poverty among the lower classes was due not to their moral failure but rather low wages, uncertain employment, and lack of economic opportunity.
One way to overcome the problem of adverse selection in labor markets is to
a. use signaling and screening b. advertise job openings widely c. contract out the hiring function d. pay above average wages e. pay below average wages
The discount rate is typically:
A. higher than federal funds rate. B. lower than federal funds rate. C. about the same as federal funds rate. D. determined by the government, and does not correlate with other interest rates.
A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside) the production possibilities curve.
