Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $70 from the auction, she can infer that
a. Both the bidders were high value bidders
b. Both the bidders were low value bidders
c. One of the bidders was high value, while the other was low value
d. All of the above
b
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Economics can be defined as the social science that explains the ________
A) choices made by politicians B) choices we make when we trade in markets C) choices that we make as we cope with scarcity D) choices made by households
Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
An increase in autonomous spending leads to higher ________
A) inflation B) output C) real interest rate D) all of the above E) none of the above
The standard interpretation of the Ricardian model is that differences in factor endowments between countries account for differences in labor productivity
a. True b. False Indicate whether the statement is true or false