First-price auctions have all the following properties EXCEPT
a. Highest bid wins
b. Highest bidder pays the second highest bid
c. The item is won by the highest bidder
d. The price is set to the highest bid
b
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If the required reserve ratio is one-third, currency in circulation is $300 billion, and checkable deposits are $900 billion, then the currency-deposit ratio is
A) 0.25. B) 0.33. C) 0.67. D) 0.375.
Applying the concept of labor specialization to international trade, if all countries specialize in producing what they do relatively best,
a. each country could become self-sufficient b. international specialization and exchange will benefit the producers but harm the consumers c. consumers are better off, but producers are worse off d. inefficiency in production occurs because specialization, although allowing for moreproduction, causes people to know less about the "big picture" e. there will be more goods produced, exchanged, and consumed
A tax on a good causes the size of the market to increase
a. True b. False Indicate whether the statement is true or false
Given an initial endowment of factor inputs,
A. there are many efficient output levels for the firms. B. a production possibility curve can be determined without knowing the contract curve. C. the midpoint on the production contract curve is the most equitable point. D. there is only one efficient level of outputs.