To avoid the winner's curse, a bidder should:
A. revise upward his private estimate of the value of the item.
B. only participate in second-price and English auctions.
C. revise downward his private estimate of the value of the item.
D. not participate in Dutch auctions.
Answer: C
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If velocity is more stable than the IS curve, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates. b. has the same effects as targeting interest rates. c. will be less effective in stabilizing aggregate demand than targeting interest rates. d. is not possible.
According to the 1860 census, the top employer in manufacturing was the _______ industry
a. boots and shoes b. cotton textile c. flour and meal d. iron
The payroll tax appears to be a proportional tax. In reality, it is
A. highly progressive. B. actually proportional. C. highly regressive. D. regressive on low-income persons and progressive on high-income persons.
Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. What event would prevent a shortage of euros from developing?
a. The dollar price of one euro remains fixed at $1.00.
b. The quantity of euros demanded changes from Q1 to Q2.
c. The dollar price of one euro is allowed to change to $1.50.
d. An increase in demand for euros shifts D1 to D2.