The table above gives some of the accounts of the United States in 2020
a) What is the private sector balance?
b) What is the government sector balance?
c) What is net exports?
a) The private sector balance equals saving minus investment, or -$300 billion.
b) The government sector balance equals net taxes minus government expenditure,
or $700 billion.
c) Net exports equals the sum of the private sector balance plus the government sector balance, so net exports equal $400 billion.
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In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes their own estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
A monopolist might keep the prices below the profit maximizing level:
a. to attract new firms to the market. b. to increase producer surplus. c. due to government intervention and scrutiny. d. due to economies of scale.