Which of the Following Statements Is True of Optimization

question 7

Multiple Choice

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.

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Definitions:

Fifth Power

A number or variable raised to the exponent of five, indicating it is multiplied by itself four times.

Hooke's Law

A principle stating that the force needed to extend or compress a spring by some distance is proportional to that distance.

Average Speed

The total distance traveled divided by the total time taken, reflecting a constant rate of movement over a specific interval.

Constant of Proportionality

A constant ratio or factor that relates two variables in a proportional relationship, often represented by k in the formula y = kx.