A mathematical technique used to solve constrained optimization problems (finding the consumer optimum, for example) is:
A) the method of Lagrange multipliers.
B) the Cobb-Douglas method.
C) the Slutsky method.
D) the Hicks substitution method.
A
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If managers ensure zero percent product failure, all of the following are true except which one?
A) Obtaining zero percent product failure is not likely to be possible. B) Obtaining zero percent product failure is likely to make the product very expensive. C) The product would never fail. D) Obtaining 100 percent product perfection is likely to be possible.
Productivity:
a. increased slightly from 1970 to 1980. b. rose rapidly after World War II. c. is a fundamental determinant of real wages. d. All of the above are correct. e. Only b and c are correct.
If the Fed wishes to reduce the money supply, it can sell U.S. government securities to member banks
a. True b. False Indicate whether the statement is true or false
Bailey's Barber Shop knows that a 5% increase in the price of their haircuts results in a 15% decrease in the number of haircuts purchased. What is the elasticity of demand facing Bailey's Barber Shop?
a. 0.05 b. 0.10 c. 0.33 d. 3.0