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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"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of living than people in Country B." Is this statement true or false? Explain your answer
What will be an ideal response?