Practice Question 2- BU 6013:

This is not enough you should study all the handout and
worksheets from week 1 to week 14

Question 1

The plot of the consumption function C = 0.7 Y + 28 is :

(a) (b)

(c) (d)

Linear programming (Answers)

Question 2
Find the maximum value of Z = -30x +50y from the feasible region shown below.
 a)2500 b) 900 c)-900 d)3500

Question 3
Find the minimum value of Z = -10x +30y from the feasible region shown below.

a)0 b) 120 c)100 d)-50

Question 4

Which point is a corner point of the feasible region of the following system of
inequalities?
x+2y≤ 10, x≥0, y≥0

a) (0,3) b) (5,10) c) (0,2) d)(1,2)

Question 5

The common region determined by all the constraints in a Linear programming problem
is called ……………………..
 a) Objective function
b) Constraints
c) Feasible region
d) Subjective function

Question 6

Solve the linear programming problem

Maximise z=3x + 4y
subject to
x + 3y ≤ 30
2x + y ≤ 20
x≥0
y≥0

a) Graph the inequalities and shade the feasible region

b) Identify the corner points from the graph and complete the below table.
Corner points z=3x + 4y
c) The maximum value is at the corner point

Question 7
For the graph

𝑦 = 𝑥 2 − 2𝑥 + 4
𝑦 =𝑥−1

Number of Solution(s): -------

solution
What are the solutions?

Question 8

𝑦 = −(𝑥 + 2)2 + 5
𝑦=5

Number of Solution(s): ---------

What are the solutions? ----------
 Question 9
Solve the following quadratic equations.

𝒙𝟐 + 𝟓𝒙 + 𝟑𝟎 = −𝟕𝒙 + 𝟏𝟎
a) 𝑥 = 10 , 𝑥 = 2
b) 𝑥 = −10 , 𝑥 = −2
c) 𝑥 = 6 ,𝑥 = 8
d) 𝑥 = −12 , 𝑥 = 5

Question 10

If the total profit of producing q units (in hundreds) is defined as

𝑃 = −5𝑞 2 + 14𝑞 + 30000
Find the number of the units q when the profit is BD 2925.
a) 75 b)36 c)29 d) 72

Question 11

If the total profit 𝑃 of producing q units in a certain factory is defined as

𝑃 = 4 𝑞 2 + 25𝑞 − 100
Find the profit when the factory produces 900 units.
a) 1250000 b) 3244400 c) 67312400 d) 1589000

Question 12

1) If the total profit 𝑃 of producing q units in a certain factory is defined as

𝑃 = −3 𝑞 2 + 120𝑞 − 100
What is the maximum profit.
a) 1100 b) 2400 c) 20 d) 120
 Question 13
The solution of the following simultaneous equation graph …(-5,9) & (1,3)

Percentage & Index numbers

Question 14
Emma is participating in a summer camp program that requires a registration fee of €800.
Luckily, she has been granted a sponsorship that covers 40% of the registration fee. How
much will Emma's sponsorship pay, and how much will she need to contribute herself?

a) The sponsorship pays €320, Emma contributes €480

b) The sponsorship pays €400, Emma contributes €320

c) The sponsorship pays €480, Emma contributes €400

d) The sponsorship pays €320, Emma contributes €400

Question 15
 The government imposes a 15% tax on the price of a good. If a firm prices a product at
$2340, how much will the consumer pay including the tax?

a) $2530 b) $2681 c) $2691 d)$2694

Question 16
If investments fall during the course of a year by 12%, what is the value of an investment
at the end of the year if it was initially worth $10,000?

a) $8,500 b) $9,800 c) $8,800 d) $5,600

Question 17
The following table presents the Gross Domestic Product (GDP) of Bahrain at current
prices for a period of 9 years, with the base year as 2015:
Year GDP Index GDP point rise
(In billions of
BD)
2015 27
2016 29
2017 31
2018 33
2019 35
2020 37
2021 39
2022 41
2023 43

I. Calculate the changes in Bahrain’s GDP over 9 years using indices based on the 2015 GDP.

II. Calculate the GDP point rise of Bahrain’s GDP from 2015 to 2023

Question 16
 Choose the correct quadratic equation represented by the graph

( a) 𝑦 = 𝑥 2 + 10𝑥 + 16
(b) 𝑦 = −𝑥 2 + 10𝑥 + 16
(c) 𝑦 = 𝑥 2 + 10𝑥
(d) 𝑦 = 𝑥 2 − 10𝑥 − 16
Question 17

Suppose that the demand function of a product is

𝑝(𝑥) = 10 − 2𝑥,
where 𝑥 is the number of units in thousands. Suppose further that the cost function is 𝐶(𝑥) =
4 + 𝑥. Answer the following questions.
a) Write the revenue function, 𝑅(𝑥).

b) Find the output that will maximize the revenue.

c) Find the maximum revenue.

d) Write the profit function.

e) Find the break-even point(s) algebraically.

solution

Question 18

The figure below shows the graphs of 𝑃(𝑥), 𝑅(𝑥) and 𝐶(𝑥) for the product in
the previous question. Use the figure to answer the following questions.

a) Find the break-even points.

b) Find the output that will maximize the profit.
c) Find the maximum profit.
d) For output will a loss occur?
e) For output will a profit occur?

Solution:

Question 19

Simple and Compound Interest:

 A principle, $30, is invested at 6% interest for 2 years. Determine the future value if the
interest is compounded
a) annually
b) semi-annually
c) quarterly
d) monthly
e) weekly
f) daily
g) continuously

Solution:

Question 20
Find the present value of $100 000 in 10 years’ time if the discount rate is 6% compounded
a) annually
b) continuously

Solution:

Question 21

Net Present Value (NPV) and Internal Rate of Return (IRR)

A small business promises a return of $28 000 on an initial investment of $20 000 after 5
years.
a) Calculate the internal rate of return.
b) Would you advise someone to invest in this business if the market rate is 6%
compounded annually?
c) Would your decision be affected if the market rate is 8% compounded annually?
Solution:

Question 22
Suppose that a project requires an initial outlay of $1000 and yields $1200 in 4 years’ time.
Use the net present value (NPV) method to decide whether this is worthwhile if the capital
could be invested elsewhere at 3% compounded annually.

Question 23

Choose the correct answer among the highlighted options to make a correct statement.
a) In the NPV method, if the net present value is (positive / negative), then the
investment is recommended.
b) In the IRR method, if the calculated rate is greater than the market rate, then the
investment is (recommended / not recommended).

Solution:

Question 24

Suppose that for a product the demand equation is 𝑝(𝑥) = −2𝑥 + 60 and the cost function is
𝐶(𝑥) = 4𝑥 + 10, where 𝑝 is the price in dollars, and 𝑥 is the number of items sold. Then the
output that will produce maximum revenue is

a) 𝑥 =15
b) 𝑥 = −15
c) 𝑥 = 30
d) 𝑥 = 2.5

Note
For data presentation and analysing refer to the handout and the worksheet to practice
the drawing ( bar chart , pi chart ogive …. Histogram) and the analysing data ( such
as mean mode median range standard deviation and variance C.V etc. refer to the
PPT in week 12 and 13 and cover in your revision all material provided in Moodle
page from week 1- week 14

In exam bring your calculator, ruler and pen and pencil for drawing.