Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30.
B. exactly 60.
C. fewer than 30.
D. exactly 30.
Answer: A
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Answer the following statements true (T) or false (F)
1) In a Dutch auction, participants only observe a single bid. 2) A participant's optimal bidding strategy is dependent on how the product is valued. 3) In a correlated-value auction, the unknown, true value of the auction item is the same for all bidders. 4) If, in an auction with independent private values, a manager values an item at a price that is lower than the item's expected profit, the manager is risk neutral. 5) If an item being auctioned has independent private values, the expected revenue is the same for all auction types.
Economists believe that public debt
a. cannot create inflation b. can create inflation if the government sells bonds to private citizens c. can create inflation if the government sells bonds to private firms d. can create inflation if the government sells bonds to the Federal Reserve e. can create inflation if the government sells bonds to foreigners
In the case of a small country, the effects of a quota and a tariff are (almost) identical if
A. the government allocates import licenses directly to the public using a free lottery system. B. the government allocates licenses for free to importers using a rule or process that involves (almost) no resource cost. C. the government allocates licenses to importers through application and selection procedures that require the use of substantial resources. D. the government auctions off import licenses to the highest bidder.
If a country wants to promote future growth, it should
A) produce more capital goods today. B) produce more consumer goods today. C) produce only economic goods. D) produce only needed goods.