"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree
Trade is voluntary and only takes place if both sides gain. There is truth to the "inflated price" portion of the statement, since OPEC's price is not truly market-determined but depends on price-fixing agreements. But even though the price is inflated, it must still be cheaper than our next best alternative, or we would not agree to buy OPEC oil.
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When a collective action problem exists, the government often has the ability to direct behaviors in ways that make society better off
Indicate whether the statement is true or false
Appendix: Sealed bids can be used in multiple rounds. How is this done?
a. The winner of the first round automatically wins all future rounds. b. The winner's price in the first round is the reservation price in the next round. If higher prices come in the next round, the highest price is the new reservation price for round three, and so forth. c. The second best price in the first round is the winner. d. Bidding continues in more and more rounds until someone yells "uncle.".
Lisa prepared a delicious dinner for her friends after making the following purchases at the local supermarket. For which of the purchases would Lisa not be choosing among goods having product differentiation?
a. canned tomatoes b. fresh eggplant c. boxed spaghetti d. shredded cheese e. red wine
If Harry Bartolini's Ford dealership sells Rosa Brown a new automobile for 30k, economic analysis indicates that
What will be an ideal response?