In a standard sealed-bid auction, the person who bids the:
A. second highest has the option to receive the good if she pays the price of the highest bidder.
B. highest gets the object of the bid.
C. second highest gets the good and pays that price.
D. highest gets the object but pays the price bid by the second highest bidder.
Answer: B
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The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the average product associated with hiring the fourth worker?
A) 40 shirts B) 55 shirts C) 50 shirts D) 220 shirts
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. Bidders do not know the estimates of the others d. The true value of the item differs across bidders
The expenditure multiplier
a) is defined as the inverse of the savings rate b) is greater than zero but less than one c) does not depend on consumption behavior d) is larger in a country with a large MPC than in a country with a small MPC e) determines the effect on consumption from an increase in disposable income
Compare and contrast Say's views of the macroeconomy with that of Keynes. What does each have to say about the economy in relationship to its potential level of real GDP?
What will be an ideal response?