Which of the following statements is true of optimization?
A) Optimization analysis only relates to the financial budget of an economic agent.
B) Individuals who optimize do not consider costs when choosing the most feasible alternative.
C) Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits.
D) Economic agents who optimize attempt to choose the best feasible option, given the information that they have.
D
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State-Owned Enterprises (SOEs) can succeed when
a. they are free from political interference and can make decisions according to economic criteria b. the government is clear about the SOE's objectives and enforces the rules c. the government is ready to subsidize the SOE in bad years d. only the most crucial firms are state owned e. SOEs never succeed according to economic criteria
In the new Keynesian model, an increase in productivity will cause ________
A) a leftward shift in short-run and long-run aggregate supply B) a rightward shift in short-run and long-run aggregate supply C) a leftward shift in short-run aggregate supply and rightward shift in long-run aggregate supply D) a rightward shift in short-run aggregate supply and a leftward shift in long-run aggregate supply