First Midterm Exam version A Econ300 Fall 2012 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 But you may also want to record your answers on this booklet since it will be returned to you next week 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 first midterm Page 1 of 6 1 Which one is not a function on the domain 0 2 Which one is a function on the domain 2 cid 2 A cid 0 cid 1 cid 3 B cid 0 cid 1 cid 4 cid 5 cid 3 cid 6 cid 4 C cid 0 cid 1 cid 7 cid 8 cid 4 D cid 0 cid 1 cid 3 cid 9 cid 2 E None of the above cid 2 A y 1 1 B y x 1 x e ln y C x D All of the above E None of the above x is 3 The function y A Concave B Convex C Linear D All of the above E None of the above A 0 1 B 1 1 C 1 0 D 1 0 1 E None of the above 5 Consider the function for the isoquant is A L y K 4 B 2 3 K y 8 L C 2 K y L 8 D 3 E None of the above K y L ECON300 first midterm Page 2 of 6 4 The roots of the equation cid 10 cid 11 cid 4 cid 12 cid 1 cid 4 cid 13 cid 6 cid 4 are y K L 1 3 2 3 where y is output K is capital and L is labor A formula 6 The difference quotient of y x is 4 1 2 x A 34 1 x x B x 2 C 2 3 x x 3 x 3 D x x 4 x 6 E None of the above 1 x x 4 4 x x 3 2 2 2 1 x 3 1 7 Which function is continuous on the domain 1 x 20 y y y A x x B x 2 e e ln C x ln 2 D All of the above E None of the above x 8 The function f is concave if and only if A f is at or below all secant lines B the average rate of change is decreasing C for all a b in domain and in 0 1 a D All of the above E None of the above f A 45 26 B 54 60 C 90 52 D 109 20 E None of the above A 453 51 B 222 22 C 1125 D 551 25 E None of the above ECON300 first midterm Page 3 of 6 1 b f a 1 f b 9 You invest 2 at 10 interest with continuous compounding What is it worth after 20 years 10 What is the present value of 500 in 2 years with 5 annual interest compounded yearly 11 For 1 a b and 1 x 0 what can you say about log a x and log b x a A Both functions are convex B log x C The slope of log D All of the above E None of the above x log b b x a x is less than the slope of log 12 Your mutual fund increased in value from 10 to 20 over the last 7 years What was the average annual return with continuous compounding for the mutual fund over the 7 year period A 0 99 B 9 9 C 14 9 D 99 E None of the above 14 How many years does it take for 20 to grow to 40 with 3 interest and continuous 15 Consider the following system Supply Q 2P 4 Demand Q 11 3P The equilibrium 13 Simplify cid 0 cid 1 cid 2 cid 3 cid 4 cid 2 cid 14 cid 3 cid 15 A cid 16 cid 6 cid 0 cid 1 cid 5 B cid 16 cid 6 cid 0 cid 1 cid 2 cid 11 cid 16 cid 17 cid 4 cid 12 C cid 4 cid 3 cid 15 cid 16 cid 6 cid 0 cid 1 cid 3 D cid 16 cid 17 cid 5 E None of the above compounding A 2 64 B 7 62 C 23 1 D 67 66 E None of the above quantity and price are A 15 1 B 2 3 C 8 1 D 6 5 E None of the above ECON300 first midterm Page 4 of 6 16 Suppose the function f has an inverse f 1 Then A f must be strictly monotonic B f 1 must be strictly monotonic C f 1 1 must be strictly monotonic D All of the above E None of the above 17 Suppose f x 2x x2 Then A f is decreasing B f is decreasing on the domain 0 1 C f is decreasing when x 0 D f is decreasing when x 1 E None of the above 18 The difference quotient of cid 0 cid 1 cid 4 cid 13 cid 6 cid 18 cid 4 cid 2 is A cid 18 cid 4 cid 6 cid 18 cid 2 B cid 18 cid 4 cid 6 cid 18 cid 17 cid 19 cid 4 cid 2 C cid 18 cid 4 cid 6 cid 18 cid 17 cid 18 cid 19 cid 4 cid 2 D cid 6 cid 4 cid 6 cid 18 cid 17 cid 18 cid 19 cid 4 E None of the above A cid 18 cid 17 cid 20 cid 4 cid 13 B cid 13 cid 14 cid 23 cid 3 cid 24 cid 14 cid 23 cid 3 cid 19 cid 3 cid 14 cid 19 cid 3 cid 24 cid 19 cid 3 C 6x 3 D 6x E None of the above A 5 2Q Q B 5 2Q P C 5 2 2Q Q D 5 2Q E None of the above ECON300 …