Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
a. the terms of contract are laid down by a third party.
b. the initial distribution of rights between the two parties is unequal.
c. services and payments take place over a span of time, and either might choose to default on his obligations at some point.
d. the contract distributes gross revenue between the two parties unequally.
C
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A second-price auction
a. is also called a Vickrey auction b. is where bidders submit increasing bids until all but one remains c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to go on a 300 mile voyage what is the total cost of the rental?
A. $60 B. $260 C. $0 D. $200
If the purchasing power of your savings is increasing over time, we know that:
A. the real rate of interest is positive. B. the inflation rate must be less than the nominal rate of interest. C. if the nominal interest rate is zero, inflation must be negative. D. All of these statements are true.
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer?
A. $675 B. $375 C. $750 D. $300