Identifying the appropriate way to allocate an economy's resources is an example of
A) a constrained optimization problem.
B) a comparative statics problem.
C) an equilibrium analysis.
D) marginal analysis.

Question

Quizplus · Accepted Answer

Identifying the appropriate way to allocate an economy's resources involves optimizing the allocation, subject to various constraints such as limited resources and competing demands. This is an example of a constrained optimization problem. Comparative statics problems involve analyzing changes in an economic model, equilibrium analysis involves studying supply and demand interactions, and marginal analysis involves examining the additional benefits or costs of producing or consuming one additional unit of a particular good or service.

Identifying the Appropriate Way to Allocate an Economy's Resources Is