Infeasibility Exists When One or More of the Artificial Variables

question 14

Multiple Choice

Infeasibility exists when one or more of the artificial variables

• A)remain in the final solution as a negative value.
• B)remain in the final solution as a positive value.
• C)have been removed from the basis.
• D)remain in the basis.

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Definitions:

Closed Economy

An economic system that does not engage in international trade, relying solely on its own internal markets.

Taxes Minus Transfers

The net fiscal contribution of an individual or sector, calculated by subtracting government transfers received from taxes paid.

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes and is instead saved.

Closed Economy

An economic system that does not engage in international trade but relies entirely on its own resources and production.