This factor contributes to the winner's curse

a. your estimate of the value of the object was not the most optimistic
b. your bid was the highest
c. there were not many other bidders you had to beat out
d. you shaded your bid too much

b

Economics

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Measures of poverty (for example, the poverty line) and the distribution of income (for example, the Lorenz curve and the Gini coefficient) are misleading for which of the following two reasons?

A) First, these measures fail to include the income U.S. citizens earn working for foreign firms that have operations located in the United States. Second, these measures fail to include income foreign citizens earn working for U.S. firms that have operations in foreign countries. B) First, these measures do not take into account income mobility over time. Second, these measures ignore the effects of government programs meant to reduce poverty. C) First, none of these measures are adjusted for inflation. Second, they do not measure income on a per capita basis. D) First, these measures fail to include dividend and interest income earned on stocks and bonds. Second, these measures fail to include the value of goods and services citizens make for their own consumption that are not sold in markets.

Economics

U.S. Treasury bonds

A) carry no risk of default and are therefore not risky investments. B) have constant yields to maturity and are therefore not risky investments. C) have constant coupon rates and are therefore not risky investments. D) are subject to fluctuations in their market prices and are therefore risky investments.

Economics