In an auction where the bidders values are $400, $500, $650, $800 and $850, the highest two bidders form a bid-rigging cartel. What would have the winning bid been if there was no cartel?
a. $501
b. $651
c. $801
d. $846
c
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When the market basket is tracked over time the goods within the basket:
A. remain the same, so only changing prices are captured. B. reflect the typical consumer each year, so it captures how consumers are affected each year. C. reflect the typical consumer each year, but prices are held constant, so it captures if we are consuming more or less as an economy. D. remain the same, but some prices are held constant on items that are important to consumers.
Transfer payments are included in the calculation of personal income but excluded in the calculation of GDP
Indicate whether the statement is true or false
In 2001 and 2002, the Bush administration ________ personal and business taxes, which should cause AS to ________.
A. increased; decrease B. decreased; decrease C. decreased; increase D. increased; increase
If price is below the equilibrium, there will be excess demand for the product.
Answer the following statement true (T) or false (F)