The Optimization Rule for Unconstrained Optimization Is to Select That

question 71

Multiple Choice

The optimization rule for unconstrained optimization is to select that level of activity at which

• A)marginal benefit equals marginal cost.
• B)total benefit is less than total cost.
• C)total benefit is equal to total cost.
• D)marginal benefit exceeds marginal cost.

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Definitions:

Milton Friedman

An American economist and Nobel laureate who was a leading proponent of monetarism and free-market capitalism.

Serious Inflation

An extreme form of inflation characterized by rapid and uncontrollable rises in prices across the economy.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will lead to an increase in production and economic growth.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.