Mary has to choose between a four-day vacation and a five-day vacation to the same place. To arrive at the optimal choice, which optimization technique do you think will be arithmetically easier and faster to implement and why?
What will be an ideal response?
In this case, to arrive at the optimal choice, optimization in differences will be arithmetically easier to implement than optimization in levels. If she optimizes in levels, she would evaluate the total net benefit of a four-day trip and compare it to the total net benefit of a five-day trip. On the other hand, optimization in differences will only require an estimation of the net benefit of the fifth day, as the first four days are common in both options. This makes it easier and faster to implement.
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a. Substitution b. Demand c. Income d. Supply
The assumption made about Real GDP in the simple quantity theory of money produces a ____________________ curve in the AD-AS version of the theory
A) horizontal AD B) vertical AD C) horizontal AS D) vertical AS
The operation of the "invisible hand" means the pursuit of private interests promotes social interests in pure competition.
Answer the following statement true (T) or false (F)
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. If the overall rate of inflation in the economy was 3.5%, what happened to the real price of amusement park tickets?
A. The real price of amusement park tickets rose by 8.5%. B. The real price of amusement park tickets fell by 1.5%. C. The real price of amusement park tickets rose by 5.0% D. The real price of amusement park tickets rose by 1.5%.