Bid-rigging is more likely when
a. auctions are larger
b. auctions are infrequent
c. auctions generate different sets of potential bidders
d. the auctioneer is paid a fixed fee rather than on commission
d
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In part, microeconomics is concerned with the study of
A) unemployment and economic growth. B) the Federal Reserve's policies. C) the effect government regulation has on the price of a product. D) national output of goods and services.
If people took external costs like pollution into consideration:
A. they would consume less of the goods causing these externalities. B. they would act in a way that is optimal from a societal perspective C. the markets for these goods creating such externalities would generate greater surplus. D. All of these statements are true.
Any theory of the yield curve must be able to explain what three general conditions?
What will be an ideal response?
You work as a forecaster for a luxury automobile manufacturer. You know that there is a strong positive relationship between the demand for luxury automobiles and income levels. The government issues a report predicting that it expects income levels to increase steadily over the next 5 years. All else equal, which of the following courses of action would you recommend to the firm?
A. Start to increase investment now so that when income levels increases and the demand for luxury automobiles increases, the firm will be able to meet the new demand. B. Don't change the amount of investment made, but raise the price of luxury automobiles in response to the expected increase in the demand. C. Suggest that the firm curtail its advertising to avert a substantial increase in demand for luxury automobiles. D. Suggest that the firm make an investment in new capital to produce luxury automobiles only after it can verify an increase in income levels.