Economists love auctions because
a. They maximize consumer surplus
b. They minimize producer surplus
c. They set the price for the item, avoiding costly negotiations
d. They open the door to costly negotiations, with room for manipulation
c
You might also like to view...
Job openings are plentiful when the
A) actual real GDP is above the natural real GDP. B) natural real GDP is above the actual real GDP. C) natural real GDP is increasing rapidly. D) None of the above.
Which of the following would lead to an increase in the demand for fast food in Chicago?
a. An increase in Chicago's population b. A decrease in average consumer income in Chicago. c. A front page newspaper article in Chicago stating that fast food is very bad for your health. d. A decrease in the average price charged by sit-down restaurants.
When society gets the most it can from its scarce resources, then the outcome is called
a. equitable. b. efficient. c. normal. d. efficacious.
The precautionary demand for money arises
A. because people feel relatively certain what the future will bring. B. because individuals are uncertain about the future. C. when nominal income exceeds potential income. D. as important exceptions to the Keynesian model. E. because the transaction demand for money is never adequate to absorb the money supply.