Which of the following statements is true?
A) Marginal analysis is a key tool used while optimizing in levels.
B) Comparative statics is a tool that can be used in both optimization in levels and optimization in differences.
C) Marginal analysis is the comparison of economic outcomes before and after some economic variable is changed.
D) Comparative statics involves calculating the incremental cost of moving from one alternative to the next best alternative.
B
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Jose works at Intel. His manager tells him what work needs to be completed each month. Jose's resource, labor, is allocated with which of the following methods?
A) command B) majority rule C) force D) personal characteristics E) lottery
The information lag facing the Fed is
A) the difficulty of becoming informed quickly of changes in public opinion about which policy goal is most important. B) the delay in receiving accurate information about the state of the economy. C) the delay in Congress and the President communicating their policy goals for the Fed to act on. D) the time required for monetary policy changes to affect output, employment, and prices.