UNIVERSITY OF ECONOMICS AND LAW FINAL EXAMINATION

FACULTY OF ECONOMIC MATHEMATICS 1st SEMESTER – ACADEMIC YEAR 2023-2024

Materials are allowed
(Được sử dụng tài liệu: sách có bản quyền, vở và giấy viết tay.)

Course: Mathematics for Economics and Business

Duration: 75 minutes - Test code: 2324-1

Question 1 (1 point): Given the following information about the commodity market:
�=�+�
� = 0.6� + 100
� =− 40� + 1200
And the money market
�� = ��
�� = 300
�� = 0.2� − 40� + 30
a) Write down the IS schedule from the first three equations from the commodity market.
b) Write down the LM schedule from the last three equations for the money market.

Question 2 (2 points): Suppose an economy has three sectors: petroleum, mechanics, and electricity.
The input-output matrix and the final demand vector are given by
0.3 0.2 0.2 60
� = 0.4 0.3 0.2 , � = 70
0.2 0.3 0.4 100
a) Using the Leontief Input-Output Model, determine the production levels (total demand)
necessary to satisfy the final demand.
b) Thanks to technical improvements, petroleum has a 50% decrease in using electricity as input.
Determine the input-output matrix after the technical improvements.
Question 3 (1 point): One would like to find a relationship between a profit � of a company having 3
branches and influencing factors such as total revenue (�), labor (�), and capital (�). The following
model is used:
� = �1 � + �2 � + �3 � (1)
for some parameters �1 , �2 , and �3 in the set of real numbers ℝ. Suppose that the profit, revenue, levels
of labor, and capital for 3 branches are given by the following vectors in ℝ3 :
� = 2,7,14 , � = 1,4,5 , � = 3,13,12 , � = 5,21,23
a) Is the system consisting of 3 vectors �, �, � linearly independent in ℝ3 ? Prove it.
b) Find the parameters �1 , �2 , �3 which satisfy the equation (1) above.

Question 4 (2 points): A demand function of producing a good is given by � = 500 − 5�. Suppose
that the average cost function of producing that good is given by
4500
�� =− 2� + 260 +
�
a) Determine the profit as a function of �.
b) Find � to maximize the profit. Determine the optimal profit and the corresponding price �.

1
 Question 5 (1 point): Given a net investment function � � = 130�0.3.
a).. Calculate the capital formulation from the end of the first year to the end of the fifth year.
b).. Determine the number of years required before the capital stock exceeds 2000, assuming that the
capital is 0 in the beginning. Round your answer to an integer.
Question 6 (2 points): A utility function of a person received from consuming � units of good 1 and �
units of good 2 is given as follows: � �, � = 2�� + 8�. Suppose that the price per unit of good 1 is
�1 = 3 (USD) and of good 2 is �2 = 6 (USD). The person is allowed to spend a budget of 900 (USD).
Find � and � to maximize the person’s utility with the given budget. Determine the optimal value of the
person’s utility.
Question 7 (1 point): In an isolated market, a company produces two goods. Let �1, �2 be the
corresponding prices and �1 , �2 be the corresponding quantities demanded of the two goods. Suppose
�1 = 600 − �1 + �2 ; �2 = 800 + �1 − 2�2
Determine the quantities �1 and �2 to maximize the company’s revenue.

THE END.

Course learning outcomes Exam content

CLO 1: Apply knowledge of linear equations and matrices in learning Questions 1, 2
and practical economic and business situations.
CLO 2: Solve fundamental problems on vector spaces and illustrate the Question 3
application of vector spaces in economic and business situations.
CLO 3: Use univariate calculus to explain real-world situations, such as Question 4
marginal functions, elasticity coefficients, and simple optimization
problems.
CLO 4: Analyze and clarify several situations in economics and Questions 6, 7
business, examples related to implicit functions, marginal functions,
partial elasticity, and fundamental optimization problems in practice.
CLO 5: Use univariate integrals to explain practical problems, such as Question 5
producer and consumer surplus, investment flows, and capital funds.

HEAD OF DEPARTMENT LECTURER

Signature______________________________ Signature______________________________
Full Name: Lê Thị Thanh An Full Name: Tập thể GV khoa TKT (phụ trách
đề: Hà Văn Hiếu)