Big Roads Construction is participating in an auction for a government contract to build a large highway. If Big Roads wins the auction, they will build the highway for the bid they submitted. Big Roads will face the winner's curse if their winning bid is too ________, making Big Roads earn ________ economic profit.
A) low; more
B) high; less
C) high; more
D) low; less
D) low; less
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The typical firm in the US economy
a. has some degree of market power. b. sells its product for a price that is equal to the marginal cost of producing the last unit. c. is perfectly competitive. d. is a monopoly.
Which of the following best describes the process that occurs when the price of a good is below equilibrium?
B. The excess supply of the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good. C. The excess demand for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good. D. The excess supply for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.
At full employment, the ______ employment rate equals zero,
a. cyclical b. frictional c. structural d. overall
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.