Economics Final ExamHighlight the correct answer!1. In the absence of worker incentives:A. everyone always gives maximum effort.B. there is a natural tendency for workers to not give their maximum effort.C. managers have little or no control.D. None of the statements is correct.2. The optimal bid in a first-price, sealed-bid auction with independent private values is to bid:A.B.C.D.the true value of the item.more than the true value of the item.less than the true value of the item.the true value of the item and more than the true value of the item, depending uponwhether value estimates are affiliated.3. Which of the following statements is true?A. A mineral rights auction is not the same as a common-value auction.B. An auctioneer is always indifferent between different kinds of auctions.C. The Dutch and first-price, sealed-bid auctions are strategically equivalent.D. An English auction always yields lower expected revenues than a second-price,sealed-bid auction4. The figure below presents information for a one-shot game.What are the Nash equilibrium strategies for firm A and B respectively?