Making choices by selecting the best feasible option given the available information is referred to as

Making choices by selecting the best feasible option, given the available information is referred to as:

A) delegation.

B) imposition.

C) actualization.

D) optimization.

2) 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.

3) Optimization can be achieved using either of two techniques of cost benefit analysis. Which of the following correctly identifies the techniques?

A) Optimization in levels and optimization in programs

B) Optimization in levels and optimization in differences

C) Optimization in programs and optimization in frames

D) Optimization in differences and optimization in frames

4) Optimization in levels calculates:

A) the total net benefits of different alternatives.

B) only the benefits of an alternative and not the costs.

C) only the costs of an alternative and not the benefits.

D) the change in net benefits when you shift from one alternative to another.

5) John has to choose between a camping holiday and a holiday in Las Vegas. If he evaluates the total net benefit of both alternatives before coming to a decision, he is using the technique of:

A) marginal analysis.

B) ordinal analysis.

C) optimization in levels.

D) optimization in differences.

6) Which of the following is NOT a step involved in optimization in levels?

A) Calculating the total net benefit of each alternative

B) Choosing the alternative with the highest net benefit

C) Converting all costs and benefits into a common value of measurement

D) Calculating the marginal consequences of moving between alternatives

7) Optimization in differences analyzes:

A) the total net benefits of different alternatives.

B) only the costs of an alternative and not the benefits.

C) the total net benefits of the alternative which looks the most attractive.

D) the change in the net benefits when you shift from one alternative to another.

8) Gary has to decide between attending a two-day art workshop and a four-day art workshop. If he evaluates only the change in net benefit when he switches between the two options, he is using the technique of:

A) ordinal analysis.

B) comparative statics.

C) optimization in levels.

D) optimization in differences.

9) The techniques of optimization in levels and optimization in differences:

A) cannot be used to compare the same set of alternatives.

B) compare only the costs and ignores the benefits of the alternatives.

C) provide identical answers when comparing the same set of alternatives.

D) may provide different answers when comparing the same set of alternatives.

10) Which of the following statements identifies a difference between optimization in levels and optimization in differences?

A) Optimization in levels compares only the costs of different alternatives, whereas optimization in differences compares only the benefits of different alternatives.

B) Optimization in levels compares only the benefits from different alternatives, whereas optimization in differences compares only the costs of different alternatives.

C) Optimization in levels calculates the net benefits of different alternatives, whereas optimization in differences calculates the change in net benefits when switching from one alternative to another.

D) Optimization in levels calculates the change in net benefits when switching from one alternative to another, whereas optimization in differences calculates the net benefits of different alternatives.