The higher the bid in a first-price sealed-bid auction, the ________ the chances of winning and the ________ the surplus earned
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
B
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Markets for pollution rights:
a. have never been tried in the United States. b. assign property rights to those who value them least. c. allow the government to assign property rights. d. enable those who value them most to pollute.
Which type of bond offers a relatively high interest rate to compensate for its relatively high chance of default?
a. Junk bond b. Treasury bond c. Municipal bond d. Savings bond
One might expect the interest rate correlation between nonpegs and closed economies with the base currency to be ____, but because of other circumstances, there may be a ____ correlation.
A) negative; positive B) positive; negative C) zero; positive D) negative; zero
Use the following production possibilities frontier to answer the next question.
The selection of which point on the production possibilities frontier is most likely to result in the largest increase in economic growth over time?
A. Point 1 B. Point 2 C. Point 3 D. Point 4