What are the two techniques to optimization? How do the techniques differ?
What will be an ideal response?
Optimization can be achieved using either of two techniques: optimization in levels or optimization in differences. Although both techniques provide identical results, there are differences between them. Optimization in levels analyzes the total net benefit of different alternatives, whereas optimization in differences analyzes the change in net benefits when switching from one alternative to another. Optimization in differences is often faster to implement than optimization in levels, because optimization in differences only focuses on the way alternatives differ.
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Which of the following is a positive statement?
A) Taxes should be lower because then people get to keep more of what they earn. B) My economics class should last for two terms because it is my favorite class. C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. D) Given their negative impact on productivity, the government should eliminate labor unions.
The primary means of rationing goods and services in a market system is through
a. the pricing system. b. rationing coupons. c. government allocation. d. food stamps.
Which of the following statements is least accurate with regard to immigration after the Civil War?
a. The number of immigrants fluctuated dramatically until World War I. b. The proportion of immigrants from Northern and Western Europe fell dramatically. c. The cost of crossing the Atlantic was much lower than it was in earlier decades. d. A growing network of relatives in the US could help immigrants find jobs and places to live. e. The majority of immigrants moved to the Midwest to take advantage of the excellent farming opportunities.
Suppose that the exchange rate between Canadian dollars and U.S. dollars is $0.60 U.S. dollars per Canadian dollar. If the exchange rate goes to $0.50 U.S. dollars per Canadian dollar, it would tend to:
a. increase U.S. exports to Canada b. decrease U.S. exports to Canada. c. increase Canadian exports to the United States. d. both (b) and (c)