ECO607 Midterm MCQs 2024 by Miss Mehwish

Past Papers for Mids./Finals are also Available · ECO607 (Mega File) · Mid Term (Live Quiz)

Q1. Which of the following is the correct option for the integrated value of C(t)=30 in the farmer's crop rate dC/dt= 0.4t? + 0.5t + 12 if time period is 7 months?

Crop after 7 months will be 17 units Crop after 7 months will be 7 units Crop after 7 months will be 30 units ✅ Crop after 30 months will be 7 units

Q2. Which of the following is the correct option for the values of group 1 and group 2 as ‘L1(x)= 0.41 and L2(x)= 0.34’ calculated with the GINI index formula, GI= 2 ∫[x - L(x)] dx?

Group 1 is facing equal inequality as compared to group 2 Group 1 is facing more inequality as compared to group 2 ✅ Group 1 is not comparable to group 2 for income inequality Group 1 is facing less inequality as compared to group 2

Q3. Given the average sorting-efficiency function Q_avg(t) = 1/3[300 ∫1 dt - 400 ∫ e^(-0.05t) dt] = 634, using definite integrals. Which statement is true?

634 letter per hour will be marginal efficiency in third month 634 letter per hour will be average efficiency in first month 634 letter per hour will be average efficiency in third month 634 letter per hour will be average efficiency in first three months ✅

Q4. Which of the following is the correct option for the term ‘L(x)’ in the GINI index formula, GI = 2 ∫[x - L(x)] dx?

Lorenz curve ✅ Per head income Complete inequality Complete equality

Q5. Which of the following is the present value of perpetual income stream flowing from a cash of Rs. 3200 and discounted at 10 % per year?

16000 3200 64000 32000 ✅

6. Oil is being pumped from an oil field years after its opening, the pumping rate function P(t) = ∫

Q2. 7e^(0.04t) dt = 0.4. Using definite integrals, which statement is true?

1. 4 barrels will be marginal efficiency in third year
2. 4 barrels will be extracted in third year
3. 4 barrels will be extracted in first three years ✅
4. 4 barrels per hour will be average efficiency in first year

Q7. Which of the following is the correct option for the integration of function given if inputs have been increased from 20 to 40 units each, Q(L,K)= K^0.4 L^0.5?

Function will be integrated with respect to Q, L and K Function will be integrated with respect to L and K only ✅ Function has a lower limit of 20 units of inputs Function has an upper limit of 40 units of inputs

Q8. Which of the following is the correct option for the term R(t) in the present value formula, PV = ∫ R(t) e^(-rt) dt?

Time period Discount Factor Cash Flow ✅ Interest rate

Q9. Suppose money is discounted at 10 percent a year within a period of 10 years, with ∫ (300e^(-0.5t)) dt = 3000 dollars. What is the interpretation of this value?

The profit value of gold mining is 3000 dollars The future value of gold mining is 3000 dollars Average profit of gold mining between 0 and 10 years is 3000 dollars The present value of gold mining is 3000 dollars ✅

Q10. Which of the following is the correct option for the term ‘12’ in the production function Q = 12L^2 / 2?

Time of production Variable cost Production frequency Constant value ✅

1. Which of the following is the true statement for the function: H(t)= 5t!/ + t(0)?*