The optimal strategy in a Vickery auction is to
a. Bid aggressively
b. Bid above your value since you would be paying the second highest price
c. Bid exactly your value
d. Bid below your value
c
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The income-expenditure model assumes that the aggregate supply curve is horizontal at a given price level
Indicate whether the statement is true or false
If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, we predict that Gambinia will export
A) labor-intensive goods. B) capital-intensive goods. C) both capital- and land-intensive goods. D) land-intensive goods. E) both labor- and land-intensive goods.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and real GDP rises. b. The real risk-free interest rate rises, and real GDP remains the same. c. The real risk-free interest rate and real GDP remain the same. d. The real risk-free interest rate falls, and real GDP falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
________ involves the direct exchange of one good for another without the use of money
a. Comparative advantage b. Barter c. Economic growth d. International trade