Refer to Figure 9.5. 
If GMB were required to submit a single sealed bid to supply buses to MetroTravel, it would
A. submit a low price.
B. split the bid-half high and half low.
C. submit neither a high nor low price.
D. submit a high price.
Answer: A
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When a man with a lawnmower in his trunk stops at Bill's house and offers to mow Bill's yard, economists assume the man
A) expects to be made better off by mowing Bill's yard for a fee. B) is desperate. C) is being exploited. D) both A and B.
In perfect competition, an individual firm
A) faces unitary elasticity of demand. B) has a price elasticity of supply equal to one. C) faces a perfectly elastic demand. D) has perfectly elastic supply.
When the government implements a price support program:
A. it may end up buying a lot of the good, for which it has little or no use. B. the goal is to increase the market price of the good. C. the deadweight loss created can be larger than that created by a price floor. D. All of these occur as a result of a price support program.
Wearing an expensive business suit to an interview is a kind of
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above