ECON300 second midterm Page 1 of 6 Econ300 Second Midterm Exam Fall 2013 version A This exam consists of 25 multiple choice questions. The maximum duration of the exam is 50 minutes. 1. In the spaces provided on the scantron, write your last name, then your first name, and also be sure to include university identification number. 2. Also fill in the bubbles below your name and id number. 3. Write your name here: ______________________________________ 4. In the “special codes” section of the scantron under “K” write the letter A 5. DO NOT OPEN this exam booklet until you are told to do so and STOP writing when you are told that the exam is over. Failure to comply will result in a 10% loss in the grade. 6. You MUST return this exam booklet with the scantron; otherwise no credit will be awarded. 7. Only the answers you provide on the scantron will be counted towards your grade. 8. Please make sure you use dark pencil marks to indicate your answer; the scantron reader may not give you credit for an answer if it can’t detect it. 10. Choose the single best possible answer for each question. You are responsible for upholding the University of Maryland Honor Code while taking this exam.ECON300 second midterm Page 2 of 6 1.   . Then A.   B.   C.   D.   E. None of the above 2.     . Then A. Q is homogeneous of degree 3 B. Q is homogeneous of degree 2 C. Q is homogeneous of degree 1 D. All of the above E. None of the above 3.   . Then A.    B.    C.    D.   E. None of the above 4.    . Then A.    B.  C.  D.  E. None of the above 5.    . Then A. dK KdL L  B. dK LdL K  C. 2dK LdL K  D. 2dK KdL L  E. None of the aboveECON300 second midterm Page 3 of 6 6.  2K+2L. Then A. Q is homogenous of degree 1 B. Q is homogenous of degree 2 C. Q is homogenous of degree 1/2 D. Q is not homogenous E. None of the above 7.               What is dy/dz? A.  B.  C.          D.         E. None of the above 8. Demand is given by q=10-4p. What is the price elasticity of demand at p = 2? A. 2/3 B. 1/2 C. 3/2 D. 1 E. None of the above 9.  !    "Then A.   +1)( ) B.   +1) C.   +1)( ) +   )() D.      E. None of the above 10. The function 1 2( , )f x x reaches a local maximum at the stationary point * *1 2( , )x x if A.  2* * * * * * * *11 1 2 11 1 2 22 1 2 12 1 2( , ) 0 and ( , ) ( , ) ( , )f x x f x x f x x f x x  B.  2* * * * * * * *11 1 2 11 1 2 22 1 2 12 1 2( , ) 0 and ( , ) ( , ) ( , )f x x f x x f x x f x x  C.  2* * * * * * * *11 1 2 11 1 2 22 1 2 12 1 2( , ) 0 and ( , ) ( , ) ( , )f x x f x x f x x f x x  D. * * * *11 1 2 22 1 2( , ) 0 and ( , ) 0f x x f x x  E. None of the above 11.  !   Then A.    B.    C.  #  D.  $ E. None of the aboveECON300 second midterm Page 4 of 6 12.     . Then A. %&'(%&' B. %&'(%&'  C. %&'(%&'  D. %&'(%&' ) E. None of the above 13.  !  * . Then ++,+-+./  A.  B.  C.      D.  E. None of the above For the next three questions,  !        .  14. Then A.      and     B.      and     C.      and     D.      and     E. None of the above 15. The stationary points of f are A. (2,1) and (1,0) B. (0,2) and (2,2) C. (-1,-2) and (1,2) D. -1 and 1 E. None of the above 16. Which one of the following claims is correct? A. There is a local minimum at (0,0) B. There is a local maximum at (2,2) C. There is a local minimum -2 D. There is a local maximum at 2 E. None of the aboveECON300 second midterm Page 5 of 6 17. A local maximum of  !   .0101 is A. * *1 20 and 0x x  B. * *1 20 and 1x x  C. * *1 21 and 1x x  D. * *1 21 and 0x x  E. None of the above 18. f is a differentiable univariate function. Then A. If 2 $!then x* is a local maximum, local minimum or inflection point. B. If 23 $, then x* is a local max. C. If 2 $, then x* is a local maximum or a local minimum. D. All of the above E. None of the above For the next three questions, the consumer’s utility 4! 5"675"7 depends on the consumption of two goods x and y. Assume the consumer selects x and y to maximize utility subject to the budget constraint 2x + y = 32. 19. Which is the correct Lagrangian (as done in this class)? A. 5"675"7 8     B. 5"675"7 8   C. 5"675"7 8     D. 5"675"7 8     E. None of the above 20. What is the utility maximizing level of x and y? A. x =6, y = 4 B. x = 6, y = 4 C. x = 12, y = 8 D. x = 16, y = 6 E. None of the above 21. What is the marginal utility of relaxing the budget constraint? A. 1 B. 3 C. 12 D. 27 E. None of the aboveECON300 second midterm Page 6 of 6 For the next