The persistent budget deficits of recent decades are
A) an expected result, because politicians have an incentive to levy taxes rather than spend on current programs.
B) surprising, because politicians have a strong incentive to balance the government's budget.
C) an expected result, because politicians have an incentive to spend on current programs financed by borrowing.
D) surprising, because politicians have a strong incentive to run budget surpluses and thereby indicate that their actions have generated a profit.
C) an expected result, because politicians have an incentive to spend on current programs financed by borrowing.
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So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
In a sealed-bid first price auction, if you notice that your competition is weaker, you should
a. Shade your bid more b. Shade your bid less c. Bid more aggressively d. Both B&C
If a certain type of clothing becomes more fashionable, we would expect that its price
a. will decrease and quantity will remain constant b. and quantity will both decrease c. will increase and quantity will decrease d. will decrease and quantity will increase e. and quantity will both increase
When the evolution of new technologies is unknown, or it is unclear which country has the "best" rules for standards, the adoption of ________ is the superior option
A) a harmonization of standards B) separate standards C) mutual recognition standards D) larger country standards