Which of the following statements is true?
A) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
B) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives.
C) Optimization in levels is based on ordinal analysis.
D) Optimization in differences is based on marginal analysis.
D
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Which of the following is an important difference between government and privately-owned enterprises?
A) Government can distribute goods without employing discriminatory rationing criteria. B) Government can more easily use negative incentives to obtain resources. C) Government does not produce exchangeable commodities or services. D) Government provides services at a lower opportunity cost. E) Government tends to pay close attention to the varying preferences of the people.
The elasticity measure which has been employed by the courts to assess the degree of market competition is
a. price elasticity of demand. b. income elasticity of demand. c. cross elasticity of demand. d. inverse elasticity of demand.
The market mechanism:
a) Works through central planning by the government. b) Is very inefficient since consumers cannot communicate directly with producers. c) Uses prices as a means of communication between consumers and producers. d) Eliminates market failures created by the government.
The quantity theory of money assumes that velocity is approximately constant resulting in nominal GDP to be proportional to the money stock.
Answer the following statement true (T) or false (F)