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Which of the following is true about the Hessian matrix of a function f(x,y)?
It is always invertible
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It is always diagonal
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Its determinant is always positive
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It is always symmetric
100%
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Law of returns to scale indicate that for this law to operate, factor proportions must be ________ at same level.
Increased
0%
Changed
0%
Decreased
0%
Unchanged
0%
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Roy’s identity is used to find the _______ demand function using the _______ utility function.
Uncompensated, indirect
100%
Compensated, indirect
0%
Hicksian, direct
0%
Marshallian, direct
0%
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The immediate effect of a per-unit tax on producers is:
An upward shift in the supply curve
100%
A downward shift in the demand curve
0%
No change in equilibrium price and quantity
0%
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Which of the following is the correct derivative using
implicit differentiation
for xy=10?
y + x dx/dy = 10
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x + y dy/dx = 0
0%
y + x dx/dy = 0
0%
x + y dy/dx = 10
0%
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The Envelope Theorem helps to simplify.
Evaluating the effect of a parameter on an optimized function without fully resolving the problem.
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Identifying multiple local optima.
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Finding the first order conditions in optimization problems
0%
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Jacobian is used for:
Second order differentials
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First order differentials
0%
First order partials
100%
Second order partials
0%
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In the Lagrange Multiplier method, the term λ represents.
The shadow price of relaxing the constraint
100%
The optimal solution to the objective function
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The second derivative of the function
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The elasticity of substitution
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If u, v, w are not independent functions of independent variables x, y, z then
∂(x,y,z)/ ∂(u,v,w) = 0
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∂(u,v,w)/ ∂(x,y,z) = 0
100%
∂(x,y,z)/ ∂(u,v,w) = 1
0%
∂(u,v,w)/ ∂(x,y,z) = 1
0%
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In a Hessian matrix of a function f(x,y), the determinant of the Hessian matrix (det(H)) represents:
The second-order derivative of f
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The Jacobian determinant of f
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The discriminant used in second derivative tests
100%
The first-order derivative of f
0%
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