What is the dominant strategy for a bidder in an English auction?
What will be an ideal response?
Since the bidder pays his bid if he wins, each bidder will continue to raise the bid by the minimum amount allowed until the bidding reaches the value that he places on the item that is being auctioned. This means that, in an English auction, it is a dominant strategy to bid until the price is above the bidder's value for the item.
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Discuss the advantages of using an income tax system such as the one discussed in this chapter, as opposed to a consumption tax.
What will be an ideal response?
Which type of analyst should generally outperform market index according to the Efficient Markets Hypothesis?
A) technical analysts B) fundamental analysts C) those that follow the random walk D) none of the above
An asset that can be easily disposed of without high transactions costs and with relative certainty as to its value is
A) solid. B) liquid. C) M1. D) M2.
When people shop more frequently and transfer money out of their bank account more often in an effort to help avoid the loss in purchasing power of cash, they bear the _____ costs of inflation
a. menu b. shoe-leather c. unit-of-account d. direct