The winner of a sealed-bid first-price auction is the participant who bid the ________ and pays the amount of the ________.

Joanne rents a TV production studio to produce an extra hour of a TV show. The rent is

A) a private cost and not an external cost. B) an external cost and not a private cost. C) both a private cost and an external cost. D) neither a private cost nor an external cost. E) a private benefit because viewers will benefit from watching the extra hour of the show.

If there is a decrease in world taxes ________

A) domestic investment would fall B) net exports would increase C) domestic interest rates would go up D) all of the above E) none of the above