Which of the following statements is true?
A) Optimization is an easy process, and all economic agents are perfect optimizers.
B) Optimization implies choosing the best option from a set of alternatives.
C) It is easier for a person to optimize when he has less information.
D) People always successfully optimize given the limited information they have.
B
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The slope of an indifference curve is equal to the ratio of the ____ of the good on the horizontal axis to the ____ of the good on the vertical axis
a. marginal utility (MU); marginal utility (MU) b. total utility (TU); total utility (TU) c. marginal product (MP); marginal product (MP) d. price (P); total utility (TU)
How will the following affect the reliability of a consumer price index if the consumer price index's base year hasn't changed in 25 years? a . Consumers collect and use frequent-flyer miles to buy airline tickets. b. Legislation passes that allows
consumers to request generic instead of name brand drugs. c. Old camcorders have black and white viewfinders, while newer models have color viewfinders.
Subprime mortgages are mortgages given to borrowers with excellent credit
Indicate whether the statement is true or false
Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i B) i and iii C) only ii D) i and ii E) i, ii, and iii