UNIVERSITY OF AMSTERDAM

Faculty of Economics and Business Department of Quantitative Economics Mathematics 2, June 18, 2010, 9:00 11:30 h During the test the use of the distributed formula sheet and a simple calculator is allowed; a graphic/algebraical/financial calculator is not allowed. If you passed the midterm test you have an option to solve only the problems 4,5 and 6. You must give solutions completely in detail, not just answers. From Wednesday June 23, 2010 on, the solutions are available at the Blackboard site http://blackboard.ic.uva.nl/

Problem 1
a. b. Find: Find:

(19 points) 1 5 x(ln x)7 dx.

( 2 + 3e2 x )
2

4e2 x

dx.

c.

Find:

2 ( 2 x + 1)
4

3 + 2x + 1

dx.

Problem 2 (15 points) a. In a market model the supply and demand functions are given by:
Supply: ps = g(q ) = 5 e 2q 1 Demand: pd = f (q ) = 5 e 2q +1 b. Find the producers surplus under market equilibrium. In a market model the supply and demand functions are given by: 5q Supply: ps = g(q ) = +1 2 6 Demand: pd = f (q ) = 5q + 3 Find the consumers surplus under market equilibrium.

Problem 3

(16 points)

Given is the differential equation: y ''+ 3y '+ 2y = 2x 2 a. b. Find all solutions of this differential equation. Find the only solution of this differential equation that satisfies the initial conditions: y(0) = 6 and y '(0) = 7 .

See other side

Problem 4 (14 points) Given is the economic dynamic macro-model:

C t = 0.75Yt It =
1 3

(C t 1 C t 2 ) + 250 t

Yt = C t + I t ( C t is national consumption, Yt is national income and I t is national investments ) a. Derive from this (discrete !) system one difference equation with Yt ,Yt 1 and Yt 2 .

b.

Solve this difference equation with the initial conditions: Y0 = 1100 and Y1 = 2050 .
(24 points)

Problem 5

1 1 3 0 1 Given is the matrix: A = 3 a 3 and the vectors y = 4 and 0 = 0 . 1 1 a + 1 1 0 a is a real constant.

a. b. c. d. e. f. g.

For which value(s) of a the matrix A is symmetric? Find the determinant of A , for all values of a. Find the determinant of the matrix 2A5 for a = 2. Find the inverse A1 for a = 0 . Solve for a = 0 the system of linear equations A x = y . Solve for a = 2 the system of linear equations 2A5 x = 0 . Find for which value(s) of a the system A x = y has infinitely many solutions and find those solutions.

Problem 6

(12 points)

The economy of a country is split up in two sectors. For the year 1997 the next input output table (in millions of dollars) is given: sector 1 sector 1 sector 2 60 80 sector 2 80 32 final demand 60 48 total production value 200 160

a. Find the technology matrix A. b. Find the inverse Leontief matrix (I A)1 c. In the year1998 the final demand of sector 1 is decreased to 57 and of sector 2 is increased to 60. Find the total productions of both sectors for that year. d. In the year 1999 the total production of sector 1 is increased to 220 and the final demand of sector 1 is decreased to 56. Find the primary costs of both sectors in 1999.