The optimal strategy for a risk-neutral bidder in a second-price, sealed-bid auction with independent private values is to bid:
A. slightly higher than his or her valuation.
B. slightly less than his or her valuation.
C. his or her true valuation.
D. None of the statements is correct.
Answer: C
You might also like to view...
On a bank's balance sheet, "borrowings" are
A) loans to households. B) loans to businesses. C) nondeposit liabilities. D) U.S. Treasury securities.
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.
If ________, a firm would shut down in the short run and exit the industry in the long run.
A. TR = TC B. TR > TFC C. TR > TVC but TR < TC D. TR < TVC
During the recession of 2001,
a. there were a number of proposals for tax increases or spending cuts to stir the economy, but they failed due to worries about their effects on the already large deficit. b. a series of tax cuts were passed, though they only occurred in late 2001. c. all the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit. d. the cyclical deficit increased but the structural deficit remained unchanged. e. None of the above