First Midterm Exam version A Econ300 Fall 2013 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 3 The function cid 0 cid 1 cid 19 cid 20 cid 21 cid 6 is cid 2 cid 0 cid 1 cid 3 cid 0 cid 1 cid 4 cid 5 cid 6 cid 0 cid 1 cid 3 cid 7 cid 2 cid 0 cid 1 cid 6 cid 8 cid 3 A B C D E None of the above cid 2 x y A 1 100 B cid 2 cid 0 cid 1 cid 9 cid 10 cid 11 cid 12 C cid 0 cid 1 cid 13 cid 14 cid 15 cid 6 cid 16 cid 17 cid 18 D All of the above E None of the above A Concave B Convex C Linear D All of the above E None of the above A 0 2 B 2 2 C 2 0 D 2 0 2 E None of the above 5 Consider the function for the isoquant is A B C 8 D 3 L E None of the above L y K 4 2 3 K y L 8 2 K y L K y 4 The roots of the equation cid 22 cid 15 cid 6 cid 18 cid 1 cid 6 cid 23 cid 16 cid 17 cid 6 are ECON300 first midterm Page 2 of 6 y 1 2 1 2 K L where y is output K is capital and L is labor A formula 1 2 6 The difference quotient of y 4 2 x x is 2 2 x 2 x 3 Answer 2 7 Which function is continuous on the domain 1 x 4 x x 34 2 x 2 2 x 2 2 3 x x 3 x A B C x D x 4 x 6 E None of the above x 3 4 x 3 2 20 y y y A x x B x 2 x ln 2 C x x 1 e e ln D All of the above E None of the above 2 8 The function f is convex if and only if A f is at or below all secant lines B the average rate of change is increasing C for all a b in domain and in 0 1 a D All of the above E None of the above f years A 47 26 B 52 60 C 96 52 D 139 20 E None of the above A 938 21 B 578 81 C 431 92 D 1051 25 E None of the above ECON300 first midterm Page 3 of 6 1 b f a 1 f b 9 You invest 20 at 10 interest with continuous compounding What is it worth after 20 10 What is the present value of 500 in 3 years with 5 annual interest compounded yearly 11 For 1 a b and x 1 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 Answer 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 5 years What was the average annual return with continuous compounding for the mutual fund over the 5 year period A 0 14 B 9 9 C 13 9 D 100 E None of the above 14 How many years does it take for 20 to grow to 60 with 7 interest and continuous 15 Consider the following system Supply Q 2P 4 Demand Q 21 3P The equilibrium 13 Simplify cid 13 cid 14 cid 24 cid 25 cid 9 cid 23 cid 7 cid 3 cid 26 cid 27 cid 20 cid 17 cid 13 cid 14 cid 24 cid 15 cid 27 cid 16 cid 28 cid 18 cid 29 cid 20 cid 30 cid 31 cid 24 cid 15 cid 16 cid 18 cid 27 cid 20 cid 17 cid 13 cid 14 cid 25 cid 27 cid 16 cid 28 A B C D E None of the above cid 3 cid 26 cid 9 compounding A 2 64 B 15 7 C 9 9 D 33 3 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 cid 22 cid 15 cid 6 cid 18 has an inverse cid 22 cid 2 cid 15 cid 6 cid 18 Then cid 22 cid 15 cid 6 cid 18 must be strictly monotonic cid 29 cid 15 cid 18 cid 20 cid 29 must be strictly monotonic cid 22 cid 15 cid 6 cid 18 cid 20 cid 6 must be strictly monotonic A B C D All of the above E None of the above 17 Suppose f x 2x2 x 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 6 cid 23 cid 20 cid 21 cid 6 cid 20 cid 24 is 19 If the difference quotient of y is cid 6 cid 16 cid 19 cid 6 cid 23 cid 16 cid 21 cid 6 cid 6 cid 16 cid 6 cid 23 then is cid 3 A cid 17 cid 6 cid 20 cid 21 cid 24 B cid 20 cid 16 cid 24 …