Econ 8370: Test III 12/10/2020 1. (15 points) Multiple Choice Questions: Choose the Best Answer. 1-1. The function f(x1,x2) = (x02 + 2171352 + (3:2)2 is (1) concave (2) convex (3) homogeneous (4) both (2) and (3) (5) none of the above 1-2. For the utility function u(x1,x2) = (x1)2/3(x2)1/3, dened for x1 > 0 and x2 > 0, (1) both marginal utilities ul and uz are equal to 1/2 at (x1,x2) : (3,3) (2) marginal rate of substitution is equal to 1 at (x1, x2) = (3,3) (3) the point (xvxz) = (3,3) lies on the indifference curve 1.: = 3 (4) all of the above (5) none of the above 1-3. For the utility function 110.1, 362) = \\fxlxz, the slope ofthe indifference curve at (x1, x2) = (1,8) is [ix (1) ,j = 8 (2) 3: = \"3 _ _ (3) \"I 16 (4) j = (5) none of the above 14. The production function q = f(L, K) = 3lL1'l3K1/3 has (1) constant returns to scale (2) increasing returns to scale (3) decreasing returns to scale (4) both (3) and homogeneous (5) none of the above 1-5. For the production function q = f (L, K) = 4L1/2K1/4, the marginal rate of technical substitution at (L, K) = (2,1) is (1) 2 (2) 4 (2) 6 (3) 8 (5) none of the above