ECO606 Quiz 3

Q1. Cross partial derivative of the function; MP_M = (\ln K).(\ln L) with respect to (\ln L) is:

1. ( L)
2. ( L) + ( M)
3. ( K)
4. ( M)

Correct answer: ( K)

Q2. Which of the following is necessary for maximum level of profit?

1. Second order derivative of the profit function should be less than zero
2. First order derivative of the profit function should be less than zero
3. First order derivative of the profit function should be greater than zero
4. Second order derivative of the profit function should be greater than zero

Correct answer: Second order derivative of the profit function should be less than zero

Q3. One of the major components of money supply is:

1. Bank deposits
2. Bank deposits
3. Bank deposits
4. Discount rate

Correct answer: Bank deposits

Q4. Which of the following shows the direct effect of the function y = f(g(w),w) ?

1. y = f(w)
2. y = f(x,w)
3. y = f(g(w))
4. x = g(w)

Correct answer: y = f(x,w)

Q5.

1. Cubic function
2. Cubic function
3. Quadratic function
4. Implicit function

Correct answer: Implicit function

Q6. 2x + 3y = 20 is an example of:

1. Production function
2. Implicit function
3. Quadratic function
4. Cubic function

Correct answer: Implicit function

Q7. Given the saving function S = 0.20Y + 3i; S_i = \frac{{\partial S}} {{\partial i}} is:

1. 0.20
2. 3.20
3. 3
4. 3/0.20

Correct answer: 3

Q8. Which of the following expression shows inverse demand function?

1. D^{ - 1} = f(P + 1)
2. P = f^{ - 1} (D)
3. P = f + D
4. D = f(P)

Correct answer: P = f^{ - 1} (D)

Q9. Which of the following shows the differential of y = f(x) = Ax^\alpha + \beta ?

1. dy = Ax^{ - 1} .dx
2. dy = ( + )Ax^{ - 1} .dx
3. dx = Ax^{ - 1} .dy
4. dy = Ax^{ - 1} .dx

Correct answer: dy = Ax^{ - 1} .dx

Q10.

1. Cubic function
2. Cost function
3. Implicit function
4. Quadratic function

Correct answer: Implicit function