Which of the following statements about winner's curse is wrong?
A) Overbidding occurs when bidders are uncertain about the true value of the good.
B) The phenomenon occurs in common value auctions.
C) When intelligent bidders shade their bids, sellers receive more money with a sealed-bid auction than an English auction
D) The phenomenon will not occur in private value auctions.
C
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Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 percent a year in China. It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.
A) 35; 8.75 B) 35; 17.5 C) 20; 10 D) 50; 25 E) 70; 35
Competition among sellers occurs
A) when marginal revenue equals marginal cost. B) when price equals marginal cost. C) when price equals marginal revenue. D) whenever sellers try to attract customers from one another.
If the short-run Phillips curve shifts to the right, we can conclude that:
a. the trade-off between inflation and unemployment has improved over time. b. the trade-off between inflation and unemployment has worsened over time. c. the inflation rate associated with any given level of unemployment has declined. d. the unemployment rate associated with any given inflation rate has declined. e. the trade-off between inflation and unemployment has remained unchanged.
In 2018, inflation exceeded expected inflation. In 2019, expected inflation exceeded inflation. Therefore the real interest rate was ________ than the expected real interest rate in 2018 and the real interest rate was ________ than the expected real interest rate in 2019.
A. less; greater B. greater; greater C. greater; less D. less; less