Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A is to be a pollution free city Clean town and all the factories would locate in city B Smogville, in the long run, we expect to see
a. Asthmatics moving to Cleantown
b. Poorer families moving to Smogville
c. Residents in both the cities relocating based on their tolerance for pollution
d. All of the above
QUESTION 2A second-price auction
a. is also called an English auction
b. is where the highest bidder wins and pays the amount of the next highest bid
c. is where the sole remaining bidder wins and pays his winning bid
d. all of the above
QUESTION 3Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A is to be a pollution free city Clean town and all the factories would locate in city B Smogville, in the long run, we expect to see
a. Asthmatics moving to Smogville
b. Poorer families moving to Cleantown
c. Residents in both the cities relocating based on their tolerance for pollution
d. Residents in both the cities being worse off
QUESTION 4A second-price auction
a. is also called a Vickrey auction
b. is conducted by bidders submitting a single sealed bid
c. is where the highest bidder wins and pays the amount of the next highest bid
d. all of the above
QUESTION 5Two cities face identical prices for their housing. City A decided to be a pollution free city Clean town and all the factories would locate in city B Smogville, in equilibrium, we expect to see
a. a compensating differential between the prices of housing between the two cities
b. the prices of housing in both the cities to be identical
c. The prices of housing in B to be higher
d. All of the above
QUESTION 6In an auction where the bidders values are 740, 700, 660, 650, 400, 325 and 300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid have been without the cartel?
a. 741
b. 701
c. 661
d. 631
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