Question 1

An English auction is usually a(n)________ auction.

Accepted Answer

An English auction is an open-outcry auction where the auctioneer starts with a low bid and invites higher bids until no one is willing to bid higher. Therefore, the best choice is D, open-outcry.

Question 2

What are the different types of auctions based on how people place their bids?

Accepted Answer

There are two different types of auctions based on how people place their bids.These are open-outcry auctions and sealed bid auctions.In open-outcry auctions,bids are placed publicly and the bidders compete directly against each other.In sealed bid auctions,all bids are private and unknown to the other bidders.

Question 3

A sealed bid auction is one in which bidders ________.

Accepted Answer

In a sealed bid auction, bidders submit their bids privately without knowing what the other bidders have offered. The highest bidder wins the auction and pays the price they bid.

Question 4

An English auction consists of ________.

Accepted Answer

An English auction involves an auctioneer who leads the bidding process and several bidders who compete to make the highest offer.

Question 5

Auctions can be differentiated on the basis of ________.

Accepted Answer

Auctions can be differentiated on the basis of the way in which people place their bids, such as a sealed bid auction, an open bid auction, or a Dutch auction. Although the number of buyers and sellers and the degree of competition among buyers can also vary between auctions, these factors are not the main distinguishing characteristic of different types of auctions.

Question 6

What is the reason for the popularity of auctions among consumers?

Accepted Answer

The answer of What is the reason for the popularity...

Question 7

Gary has won a laptop in an online auction.This implies that Gary's willingness to pay for the laptop was ________.

Accepted Answer

Gary's winning the auction implies that his bid was higher than those of the other bidders, indicating his willingness to pay was higher than theirs.

Question 8

In an English auction,________.

Accepted Answer

In an English auction, also known as an open ascending price auction, the auctioneer typically begins the bidding process with a low starting bid and gradually increases the bid amount as bidders compete against each other to win the item being auctioned.

Question 9

In an English auction,the winner pays a price equal to ________.

Accepted Answer

In an English auction, the winner pays a price equal to the value of the highest bid, as the auction continues with bids increasing until no higher bids are made.

Question 10

In general,it is common for goods with ________ to be auctioned.

Accepted Answer

Goods with relatively few buyers are often auctioned to ensure that they are sold to those who value them the most, as auctions can help determine the highest price a buyer is willing to pay.

Question 11

Scenario: Four friends-Tom, Bill, Jeff, and Roger-are participating in an English auction. Tom values the good being auctioned at $500, Bill values it at $210, Jeff values it at $350, and Roger values it at $625.
-Refer to the scenario above.If they are the only bidders in the auction and each of them uses his optimal strategy,who will win?

Accepted Answer

Roger values the good being auctioned at the highest amount, so he will be willing to bid the highest amount and win the auction.

Question 12

If Tom is participating in an English auction,he should ________.

Accepted Answer

In an English auction, participants are expected to bid up to their maximum willingness to pay. This means that they should place bids up to the highest amount they are willing to pay for the item being auctioned. Bidding above their maximum willingness to pay would not be beneficial as they may end up paying more than what the item is worth to them. Bidding below their value for the item may result in losing the auction to someone who values the item more than them. There is no fee to place a bid in an English auction.

Question 13

In an English auction,________ with each bid.

Accepted Answer

In an English auction, the price of the good being offered increases with each bid.

Question 14

Kim is participating in an auction in which bids are placed publicly and the price of the good being auctioned increases until there is only one standing bid.This is an example of a(n)________ auction.

Accepted Answer

In an English auction, bids are placed publicly and the price of the good being auctioned increases until there is only one standing bid. This matches the scenario described in the question. A Dutch auction involves the price of the good being auctioned decreasing until one bidder accepts the current price, while first-price and second-price auctions involve the highest bidder winning but with different pricing mechanisms.

Question 15

In an English auction,the ________ bidder wins.

Accepted Answer

In an English auction, the highest bidder wins. This means that the person who offers the highest bid (i.e., the most money) for the item being auctioned is the winner of the auction.

Question 16

What are the different types of auctions based on how the price of the item being auctioned is determined?

Accepted Answer

The answer of What are the different types of auctions...

Question 17

In an auction,________.

Accepted Answer

In an auction, buyers bid on items, and the highest bid sets the price of the good, effectively meaning the buyers set the price.

Question 18

If you are participating in an English auction,you will win if ________.

Accepted Answer

In an English auction, the winner is the bidder who places the highest bid. Therefore, the best choice is B.

Question 19

An English auction ends when ________.

Accepted Answer

An English auction ends when no bidder is willing to bid any higher. This is the standard rule for English auctions where the highest bidder wins and the auction ends when no one is willing to bid any higher.

Question 20

An open-outcry auction is an auction where ________.

Accepted Answer

In an open-outcry auction, bidders know about one another's bids as they are placed publicly. This type of auction is commonly used for commodities or financial instruments such as stocks or futures.

Quiz 17: Auctions and Bargaining

An English auction is usually a(n) ________ auction.