In a common-value auction
a. No bidder knows what the exact value of the item being auctioned
b. Each bidder has only an estimate of the value of the item
c. The value is the same for each bidder
d. All of the above
d
You might also like to view...
Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising
If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) B to A B) A to E C) C to B D) E to A E) D to C
Briefly explain the effects on potential GDP of cutting each of the following taxes: a. Individual income tax b. Corporate income tax c. Taxes on dividends and capital gains
What will be an ideal response?
Suppose the Fed makes a $5 million discount loan to a bank. Illustrate how this affects the balance sheets of the Fed and the banking system
What will be an ideal response?
If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then:
a. there is an excess supply of 25,000 units of milk. b. the price of milk will tend to rise to clear the market. c. consumers get the milk they want so market equilibrium exists. d. there is an excess demand of 25,000 units of milk. e. this is the intersection of market supply and demand curves.