ECON300 first midterm Page 1 of 6 Econ300 First 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. 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 2 of 6 1. Which one is not a function on the domain (0, )? A. B. C. D. E. None of the above 2. Which one is a function on the domain ( 2, ) ? A. 1100yx B. C. D. All of the above E. None of the above 3. The function is A. Concave B. Convex C. Linear D. All of the above E. None of the above 4. The roots of the equation are A. {0, 2} B. {–2, 2} C. { -2,0} D. {-2, 0, 2} E. None of the above 5. Consider the function 1/2 1/212y K L , where y is output, K is capital and L is labor. A formula for the isoquant is A. / 4L y K B. 3 2/ 8K y L C. 2/ 8K y L D. 3/K y L E. None of the aboveECON300 first midterm Page 3 of 6 6. The difference quotient of 42y x x is A. 34 2x x B. 2(2 ) 2x x C. 3 2 24 3 3 ( ) 2x x x x x D. 3 2 2 34 6 4 ( ) ( ) 2x x x x x x <= Answer E. None of the above 7. Which function is continuous on the domain [1, )? A. 20y x x B. ln(2 2)y x x C. 2ln( 1)x xy e e D. All of the above E. None of the above 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], ( (1 ) ) ( ) (1 ) ( )f a b f a f b D. All of the above E. None of the above 9. You invest $20 at 10% interest with continuous compounding. What is it worth after 20 years? A. $47.26 B. $52.60 C. $96.52 D. $139.20 E. None of the above 10. What is the present value of $500 in 3 years with 5% annual interest compounded yearly? A. $938.21 B. $578.81 C. $431.92 D. $1051.25 E. None of the aboveECON300 first midterm Page 4 of 6 11. For 1 < a < b and x>1, what can you say about log ( )ax and log ( )bx ? A. Both functions are convex B. log ( ) log ( )a bx x <= Answer C. The slope of log ( )ax is less than the slope of log ( )bx D. All of the above E. None of the above 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 13. Simplify A. B. ! C. D. E. None of the above 14. How many years does it take for $20 to grow to $60 with 7% interest and continuous compounding? A. 2.64 B. 15.7 C. 9.9 D. 33.3 E. None of the above 15. Consider the following system. Supply: Q = 2P – 4; Demand: Q = 21 –3P. The equilibrium quantity and price are A. (15, $1) B. (2, $3) C. (8, $1) D. (6, $5) E. None of the aboveECON300 first midterm Page 5 of 6 16. Suppose the function has an inverse ". Then A. # must be strictly monotonic B. $"! must be strictly monotonic C. must be strictly monotonic 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 %is A. B. ! & '! C. ' D. ' E. None of the above 19. If the difference quotient of y is ( ' ', then )*) is A. +! !+ B. ,( -. ' ' -' C. . / ' D. . / ' E. None of the above 20. Total revenue = PQ, where P = 5 – Q. The average rate of change of total revenue is A. 5 2P P <= Answer B. 5 2Q P C. 5 2 2Q Q D. 5 2Q E. None of the aboveECON300 first midterm Page 6 of 6 21. The derivative of f(x) is A. The average rate of change as x approaches to 0 B. 0( ) ( )limxf x x f xx C. The slope of the tangent line at the point 0 D. All of the above E. None of the above 22. Revenue is 1 2 . Marginal revenue is A. B. 3 C. 45 D. 2 E. None of the above 23. Let 6. The derivative of y is A. 7 B. ! C. 3 D. E. None of the above 24. Let …
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