Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because
a. those who stand to gain have an incentive to tell the truth.
b. those who stand to lose have an incentive to exaggerate their true costs.
c. answers to the survey questions will always be downwardly biased.
d. not everyone asked will be using the highway.
b
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An interest rate spread is the difference between an interest rate on a risky asset and the corresponding interest rate on a risk-free treasury security.
Answer the following statement true (T) or false (F)
In a perfectly competitive market with 100 identical firms producing at market price p1
A) the supply curve is flatter than if there were only 50 identical firms. B) the supply curve is more elastic than if there were only 50 identical firms. C) the firms have identical marginal costs. D) All of the above.
Under the non-strategic view of bargaining, the terms of agreement are determined by
a. Your opponent's eagerness to reach agreement b. Your outside options c. Your opponents gain from agreement d. All of the above
Which statement is true?
a. There is some price at which quantity supplied of a product is negative b. As product price decreases, producers are willing to put more of the good on the market for sale c. To entice producers to offer more of a product on the market for sale, product price must rise d. There is an inverse relationship between product price and quantity supplied