Appendix: An incentive-compatible revelation mechanism is
a. self-enforcing
b. always multi-period
c. too complicated to influence decisions
d. prevalent in vertically integrated businesses
e. not adopted by franchise businesses
a
You might also like to view...
Assume that the marginal propensity to consume in an economy is 0.9. If the economy's full-employment real GDP is $500 billion and its equilibrium real GDP is $550 billion, there is an inflationary expenditure gap of
A. $5 billion. B. $500 billion. C. $100 billion. D. $50 billion.
Vote trading in legislatures can lead to efficient outcomes that might otherwise not have been reached.
Answer the following statement true (T) or false (F)
In cases where negative externalities are present, the equilibrium price in the market is higher than it should be to achieve the optimal allocation of resources
Indicate whether the statement is true or false
The “free rider” problem occurs when a good is
A. not available. B. not excludable. C. not depletable. D. not sold in free markets.