Economists love auctions because
a. They maximize consumer surplus
b. They create efficiency by allotting the item to the highest-value bidder
c. They create efficiency by allotting the item to the lowest value bidder
d. All of the above
b
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The income statement indicates a company's success or failure in deriving a profit from its operations, it also reflects the inflow and outflow of cash from operating activities.
a. true b. false
Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one. b. the denominator is always equal to one. c. the price is fixed by the government. d. the rate is adjustable in increments of 25 basis points.