ECON 310 Lecture 1: Econ 310 ClassNotes, Week 1, Lecture 1, Page 2

a) U = xy

b) U = (xy)^1/3

c) U = min(x,y/2)

d) U = 2x + 3y

e) U = x^2 y^2 + xy

All homogeneous utility functions are homothetic. Are any of the above functions homothetic but not homogeneous? Show your work.

6. Use the following equation: Y = (C + I + G) + (EX - IM) + (EXFS - IMFS) + (UTIN - UTOUT) and data provided below to calculate Madripoor's current account.

Y = 97

EX = 13

EXFS = 4

UTIN = 1

C = 70 IM = 16

IMFS = 2

UTOUT = 3

I = 10

G = 20

1. Identify the returns to scale for each production function.

a) f(K,L) = (K^1/4)*(L^2/3) 

b) f(K,L) = 3K+2L 

c) f(K,L) = min(3L,4K) 

d) f(K,L) = 2*((K^1/5)*(L^4/5)) 

e) f(K,L) = (2K^2)+L^2