25Midterm+II+NO+ANS

25Midterm+II+NO+ANS - UCI- Winter 2011 Econ 100 A-Midterm...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
UCI- Winter 2011 Econ 100 A-Midterm II Prof El Hag- Version A Part I: Please answer all of the following multiple choice questions (possible points 15) 1) Increasing returns to scale in production means A) more than 10% as much of all inputs are required to increase output 10%. B) less than twice as much of all inputs are required to double output. C) more than twice as much of only one input is required to double output. D) isoquants must be linear. 2) Assume that two investment opportunities have identical expected values of $100,000. Investment A has a variance of 25,000, while investment B's variance is 10,000. We would expect most investors (who dislike risk) to prefer investment opportunity A) A because it has less risk. B) A because it provides higher potential earnings. C) B because it has less risk. D) B because of its higher potential earnings. 3) The budget line in portfolio analysis shows that A) the expected return on a portfolio increases as the standard deviation of that return increases. B) the expected return on a portfolio increases as the standard deviation of that return decreases. C) the expected return on a portfolio is constant. D) the standard deviation of a portfolio is constant. E) a riskless portfolio will earn a zero return. 4) When the average product is decreasing, marginal product
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/17/2012 for the course ECON 100A taught by Professor Safarzadeh during the Fall '09 term at UC Irvine.

Page1 / 5

25Midterm+II+NO+ANS - UCI- Winter 2011 Econ 100 A-Midterm...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online