For this question, assume that the economy is initially operating at the natural level of output. A reduction in taxes will cause
A) an increase in the real wage in the medium run.
B) a reduction in the real wage in the medium run.
C) no change in the nominal wage in the medium run.
D) ambiguous effects on the real wage in the medium run.
E) none of the above
E
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The optimal bidding strategy in a second-price sealed-bid auction is similar to the optimal bidding strategy in a(n) ________ auction. In both auctions, dominant strategies are at work
A) open-outcry English B) open-outcry Dutch C) first-price sealed-bid D) penny
According to the text, in the absence of uncertainty, no one can obtain a profit from the exclusive ownership of a scarce resource, such as a patent or a franchise, because
A) demand curves will be perfectly elastic. B) marginal cost will equal marginal revenue. C) profit requires active production rather than static ownership. D) the cost of retaining ownership will rise to eliminate any profit. E) the tax on capital gains will eliminate any profit.