In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use ________
A) is efficient
B) is inefficient
C) would be more efficient if people firms would produce more DVDs
D) would be more efficient if people would buy more DVDs
B
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Wendy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Wendy sees 3 movies a week and buys 3 magazines
The price of a magazine now increases to $4 and Wendy's brother gives her $6 a week so that she can still see 3 movies a week and buy 3 magazines. In this situation, Wendy will see ________ movies and buy ________ magazines. A) 3; 3 B) less than 3; less than 3 C) more than 3; fewer than 3 D) less than 3; more than 3
The winners curse is more often associated with;
a. oral auctions b. second-price auctions c. first-price sealed bid auctions d. common value auctions
Behavioral economists believe that the human brain is generally:
A. efficient and accurate. B. efficient but prone to errors. C. inefficient but accurate. D. inefficient and prone to errors.
Which of the following conditions will occur when two countries are engaged in a credible, fixed exchange rate regime?
A) E = 1 B) E > 1 C) i = i D) E < 1