Vickery auctions are
a. Oral auctions
b. Second price sealed bid auctions
c. English auctions
d. None of the above
QUESTION 2Critical care surgeons get paid higher salaries than family doctors because
a. they usually work under highly stressful conditions
b. they usually have to get longer training
c. they usually work uncertain hours
d. all of the above
QUESTION 3Ebay's use of bidding agents will
a. effectively turn an English auction into a Vickery auction
b. effectively turn a Vickery auction into an English auction
c. decide how much to shade your bid for you
d. make you a more aggressive bidder
QUESTION 4Firemen generally are paid higher wages because
a. they are usually highly educated
b. they are usually working under riskier conditions
c. they are working long and uncertain hours
d. both B&C
QUESTION 5More bidders tend to increase the selling price in a second-price auction because
a. bidders bid less aggressively
b. the true value of the losers is lower
c. the true values of the losers is higher
d. Both A&C
QUESTION 6According to the indifference principle, in the long run if being a teacher is more desirable than being a garbage collector,
a. teachers would be paid a relatively higher salary than garbage collectors
b. teachers would be paid a relatively lower salary than garbage collectors
c. teachers and garbage collectors would both be paid the same wages
d. none of the above
QUESTION 7The more bidders there are at a second-price auction,
a. the higher the expected selling price
b. the higher each bidder bids
c. the more each bidder will shade his bid
d. the less each bidder will shade his bid
QUESTION 8In the long run, if housing prices are higher in San Diego, California, versus Nashville, Tennessee, then
a. individuals would move to Nashville
b. individuals would move San Diego
c. there would be no movement across the two cities, since the difference in prices is pure compensation for difference in living conditions
d. Both B&C
Quick Reply
