Which of the following statements is true?
A) It is easier for a person to optimize when he has less information.
B) Optimization implies choosing the best option from a set of alternatives.
C) People always successfully optimize given the limited information they have.
D) Optimization is an easy process, and all economic agents are perfect optimizers.
B
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The above figure plots income and consumption in a nation. In 2007
A) consumption was equal to $25,000 and income was equal to $28,000. B) consumption was equal to $28,000 and income was equal to $25,000. C) consumption was equal to $25,000 and income was equal to $25,000. D) consumption was equal to $27,000 and income was equal to $31,000.
Economies organize according to the principle of specialization and exchange because doing so
a. enables the government to exercise greater control than would otherwise be possible b. forces people to work longer hours than they would do normally c. eliminates the "law of increasing opportunity costs" d. enables workers to move up to management in the least amount of time e. enables greater production and higher standards of living to be realized than would otherwise be possible
According to the BLS, the unemployment rate is the percentage of the
a. labor force that is unemployed or working part-time b. labor force that is unemployed and had expressed interest in working c. civilian labor force that is unemployed less the number of government workers d. adult population that is unemployed e. adult population that is unemployed or looking for a better job
The long-run industry supply curve in perfect competition is derived from the
a. short-run industry supply curve which shifts as new firms enter the industry. b. short-run industry supply curve which shifts as old firms exit the industry. c. freedom of firms from sunk costs so that new cost curves become long-run curves. d. All of the above reasons.