Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If three bidders show up at the auction and two of the bidders are low value, what would the winning price be?
a. Just above $100
b. $100
c. Just above $70
d. $70
c
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Refer to Figure 9-2. With the tariff in place, the United States
A) imports 16 million pounds of rice. B) imports 15 million pounds of rice. C) imports 9 million pounds of rice. D) exports 31 million pounds of rice.
Each of the following, except one, is a limitation on collusive behavior. Which is the exception?
a. the market demand curve b. a tit-for-tat strategy c. the threat of prosecution d. incentives for firms to lower prices e. incentives for firms to raise output
Where would a country such as Japan get U.S. dollars in order to engage in managed float?
a. It would print them. b. It would use its reserve of dollars. c. It would sell yen on the open market in exchange for U.S. dollars. d. Since Japan's currency is the yen, it would not be able to obtain U.S. dollars. e. It would borrow U.S. dollars form the U.S.
The real rate of interest is 3% and the anticipated rate of inflation is 2%. What is the nominal rate of interest?
A. -1% B. 0% C. 1% D. 5%