In a second-price auction, the winner pays
A) the second-to-last bid it made.
B) the average of the top two bids.
C) the amount bid by the runner-up.
D) None of the above.
C
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Voluntary export restraints are illegal under international trading rules
Indicate whether the statement is true or false
Other things equal, the ________ the real interest rate, the ________ the potential pool of borrowers
A) higher; less risky B) higher; more risky C) lower; smaller D) lower; less qualified
A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant
a. True b. False Indicate whether the statement is true or false
If it's possible to eliminate the problems created by externalities, why do they persist?
A. The benefits of correcting the externalities generally exceed the costs. B. Correcting externalities would always reduce total surplus. C. It is difficult to measure external benefits and costs. D. None of these statements is true.