Cross price elasticity of demand is equal to:

• A) Percentage change in quantity demanded of one product / Percentage change in price of another product
• B) Percentage change in quantity demanded / Percentage change in price
• C) Percentage change in supply / Percentage change in demand
• D) Percentage change in quantity demanded / Percentage change in income

$$\frac{{\partial F(Q,K,\overline L )}} {{\partial K}}$$ shows:

• A) Output elasticity of labor
• B) Marginal product of capital
• C) Marginal product of labor
• D) Output elasticity of capital

Given the Cobb-Douglas production function; $$Q = AK^\alpha L^\beta$$ L represents:

• A) Constant
• B) Output
• C) Labor
• D) Capital

Formula to calculate total cost is:

• A) Average cost / Output (Q)
• B) Average cost × Output (Q)
• C) Marginal cost / Output (Q)
• D) Marginal cost + Output (Q)

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

• A) $$(\ln L)$$
• B) $$(\ln M)$$
• C) $$(\ln K)$$
• D) $$(\ln L) + (\ln M)$$

Narrow money supply is equal to:

• A) Cash holdings + Interest rate
• B) Cash holdings – Bank deposits
• C) Bank deposits – Reserve ratio
• D) Cash holdings + Bank deposits

Saving and interest rate are:

• A) Positively related
• B) Negatively related
• C) Not related
• D) Indirectly related

$$\begin{gathered} y = f(g(x)) \hfill \\ \frac{{dy}} {{dx}} = \frac{d} {{dx}}\{ f(g(x))\} = f'(g(x)).g'(x) \hfill \\\ \end{gathered}$$ Given the above expression; $$g'(x)$$ represents:

• A) Derivative of inside function
• B) Outside function
• C) Derivative of outside function
• D) Inside function

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

• A) $$x = g(w)$$
• B) $$y = f(w)$$
• C) $$y = f(x,w)$$
• D) $$y = f(g(w))$$

Which of the following shows the differential of $$y = f(x) = 4x^2 + 20$$ ?

• A) $$dx = (8x).dy$$
• B) $$dy + dx = (8x)$$
• C) $$dy = (8x).dx$$
• D) $$dy(8x) = dx$$

Which of the following shows the differential of $$y = f(x) = 3x + 2$$ ?

• A) $$dy = (3 + x).dx$$
• B) $$dx = (\frac{1} {3}).dy$$
• C) $$dy = (2 + 3).dx$$
• D) $$dy = (3).dx$$

Which of the following is the derivative of total revenue?

• A) Average revenue
• B) High revenue
• C) Marginal revenue
• D) Fixed revenue

Which of the following shows the differential of $$y = f(x)$$?

• A) $$dy.f(x) = dx$$
• B) $$dx = f(x).dy$$
• C) $$dy = f(x).dx$$
• D) $$dy.dx = f(x)$$

Demand for money and income are:

• A) Directly related
• B) Positively related
• C) Negatively related
• D) Positively related

One of the major components of money supply is:

• A) Bank deposits
• B) Bank deposits
• C) Discount rate
• D) Bank deposits

Cost which is changed with the level of output is called:

• A) Variable cost
• B) Opportunity cost
• C) Fixed cost
• D) Sunk cost

Saving and income are:

• A) Not related
• B) Not related
• C) Positively related
• D) Negatively related

Which of the following is used to relate supply of goods with producer’s profit?

• A) Hotelling’s Lemma
• B) Roy’s identity
• C) Envelope theorem
• D) Shephard Lemma

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

• A) First order derivative of the profit function should be greater than zero
• B) Second order derivative of the profit function should be less than zero
• C) First order derivative of the profit function should be less than zero
• D) Second order derivative of the profit function should be greater than zero

Which of the following is true for the function; $$Q = f(K(t),L(t))$$ ?

• A) Capital and labor remain at their initial conditions
• B) Capital and labor remain unhanged
• C) Capital and labor do not depend on time
• D) Capital and labor can improve over time