MGEA02H TERM TEST Page 2 of 8 This term test consists of 25 questions (plus a 26th identifier question). Answer each question by November 2, 2015 choosing the best alternative and indicating your choice in the appropriate place on the scantron sheet provided with this exam (it is the only thing you will turn in at the end of the exam). You may take the rest of the exam away with you, so you can use the fronts and back of these pages for your rough work. If you wish to keep a record of your answers, make a note of them on the exam. The scantron sheet will not be returned to you, but correct answers will be posted, and your grade will be communicated to you through Blackboard. answers). Each correct answer to questions 1 through 25 is worth 4 marks (there is no deduction for wrong = (-48 x ) (400 - 4x2 ) "/ -48 x 1-3. A country produces goods X and Y and has the following equation for its production N400 - 4x2 possibilities frontier: Y = 12(400 -4X;)'s, DEX = 10 Derivitive: 12(400-4x2)1/29 Questions 1 through 3 concern this country. = (12) (12) (400 4x 2 )12(-8x ) OC Question 1. You are told that the economy is producing efficiently and has chosen to produce and = ( 6 ) ( 40 0- 4x2)-112 (-8x) (Y ) consume 6 units of X and 192 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Vas, A = 6 A) 1/128 B) 1/64 C) 1/36 G) 1 1 1/18 E) 1/12 A F) 1/6 H) 6 I) 18 J) none of the above Ocy = - 1/18 - 48 ( 6 ) 2. Now you are told that the economy is producing efficiently and has chosen to198 aud and x ) consume 8 units of X. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Xas: A = 8- OCX = / - 48 (8 ) A) 1 B) 2 (C) 4 E) 10 F) 18 32 N40O - 418) 2 D 36 J) none of the above Max Ulitty Vol G) 24 = 32 3. Suppose that those in charge of this economy want to maximize the utility of the residents of cof output the country, where utility can be computed according to the equation U = XY How many units of X (rounding to one decimal place) are included in the set of X and Y that will maximize the utility value of the output produced? A) 33.3 B) 3.6 C ) 4.4 D) 4.8 5.8 . F) 6.4 G) 7.6 H) 8.2 1) 9.6 J) none of the above