Estate sales often involve an auctioneer rattling off prices in an effort to get the highest price possible. Which of the following is true?
A. If the auctioneer starts the bid too low and only one person wants the item, then efficiency is not reached.
B. The sale does reach equilibrium because the only person desiring the item at the last price called gets it so no other trades could add to welfare.
C. Equilibrium properties are not relevant unless a larger market is involved.
D. Because there is no chance to have the quantity supply increased in the moment the sale cannot reach the efficient point.
Answer: B
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The supply schedule
A) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. B) is the schedule that suppliers have to keep or else they will be late. C) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change. D) shows one quantity at one price. E) is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change.
Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in economic growth. Also, during this time ________ occurred because ________
A) inflation; aggregate demand decreased by more than potential GDP B) stagflation; aggregate demand increased by more than potential GDP C) deflation; aggregate demand increased by more than potential GDP D) inflation; aggregate demand increased by more than potential GDP E) inflation; aggregate demand increased by less than potential GDP
Consistency for the sample average can be defined as follows, with the exception of
A) converges in probability to . B) has the smallest variance of all estimators. C) . D) the probability of being in the range ± c becomes arbitrarily close to one as n increases for any constant c > 0.
The abrupt end of long distance cattle drives in 1885 was primarily due to
a. the development of railroad cars that could haul cattle. b. organized efforts by northern cattlemen to reduce overstocking of cattle on the northern ranges. c. the advent of barbed wire fences. d. a reduced demand for beef in both domestic and export markets.