Math for economyMM1005

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Lecturer: Eric Ahlqvist, [email protected] · Put “MM1005” in the subject line.

Practice exam 2

⏱ 5 hours70 p7 problems
Grade limitsE 35D 42C 49B 56A 63

How to use the mock exam

This paper has the same format, length and level as the exam. Do it on paper under exam conditions: five hours, no notes, and full solutions written out before you open any solution here. Then mark yourself, one criterion at a time, against the marking guide under each problem: a criterion gives its point only if what it asks for really stands in your solution.

The Before the exam card on the Course page lists, for each problem, the lectures and the exam problems that train it.

Instructions

Write clearly and justify your solutions well. The writing time is 5 hours.

  • During the exam you may not use any textbook, class notes, or any other supporting material.
  • Non-graphical calculators will be provided for the exam by the department. Other calculators may not be used.
  • In all solutions, justify your answers. Show clearly the computations you do to reach the solution; answers without motivation and computations will receive zero credit.
  • Use natural language, not just mathematical symbols. Write clearly and legibly.
  • Mark your final answer to each question clearly by putting a box around it.
  • Begin each problem (1–7) on a new page and write the problem number at the top of the page. For problems with several parts, you do not need to start each part on a new page.

Grades: Each problem is awarded up to 10 points; the maximum is 70 points. For the grades E, D, C, B, A at least the following numbers of points are required:

EDCBA
3542495663

Note that the problems are not ordered according to difficulty.

Notation

$R_{i}$ is row $i$ of an augmented matrix, and $R_{2}-R_{1}$ by an arrow means "subtract row 1 from row 2". $U'_{x}$ is the partial derivative of $U$ with respect to $x,$ and $A=U''_{xx},$ $B=U''_{xy},$ $C=U''_{yy}$ are the second-order partials of the second-derivative test.

Problems

Problem 110 pComputeModel: practice exam 2, Problem 1 (this paper)

A parameter from a 0/0 limit, and two roots at infinity

Answer both parts.

  1. (a)

    Determine the value of the parameter $a$ such that $$ \lim_{x\to 0}\frac{\ln(1+ax)}{e^{2x}-1}=4\,. $$

    5 p
  2. (b)

    Calculate the limit $$ \begin{aligned} \lim_{x\to+\infty}\Bigl(&\sqrt{x^{2}+6x}\\ &-\sqrt{x^{2}-2x}\Bigr)\,. \end{aligned} $$

    5 p

The text is stored only in this browser. Nobody marks it for you.

Problem 210 pComputeModel: practice exam 2, Problem 2 (this paper)

By parts with a logarithm, and an improper integral by substitution

Calculate the integrals

  1. (a)
    $\displaystyle\int_{1}^{e}x^{2}\ln x\,dx,$
    5 p
  2. (b)
    $\displaystyle\int_{0}^{+\infty}\frac{2x+3}{(x^{2}+3x+1)^{2}}\,dx.$
    5 p

The text is stored only in this browser. Nobody marks it for you.

Problem 310 pComputeModel: practice exam 2, Problem 3 (this paper)

An implicit function with an exponential: value, tangent, Taylor, shape

The equation $$ x\,e^{y}+y+x^{3}=2 $$ defines $y$ as a twice differentiable function of $x$ near the point $x=1{:}$ $y=y(x).$

  1. (a)

    Find all possible real values of $y(1).$

    3 p
  2. (b)

    Find the equation of the tangent line to the curve at the point $(1,y(1)).$

    3 p
  3. (c)

    Find the Taylor polynomial of degree 2 of $y(x)$ about $x=1.$ Is $y(x)$ convex or concave near $x=1$?

    4 p

The text is stored only in this browser. Nobody marks it for you.

Problem 410 pComputeModel: practice exam 2, Problem 4 (this paper)

A polynomial times an exponential, with two parameters

For real numbers $a$ and $b,$ consider the function $$ f(x)=\bigl(x^{2}+ax+b\bigr)\,e^{-x}\,. $$

  1. (a)

    Find the values of $a$ and $b$ such that $f$ has stationary points at both $x=1$ and $x=3.$

    3 p
  2. (b)

    For the values of $a$ and $b$ found in (a), determine the intervals on which $f$ is increasing and on which it is decreasing, and classify the stationary points as local maximum or minimum points.

    4 p
  3. (c)

    Does $f$ have a global maximum on $\mathbb{R}$? A global minimum? Justify your answers.

    3 p

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Problem 510 pComputeModel: practice exam 2, Problem 5 (this paper)

Utility on a budget line, and what λ says

A consumer buys $x\ge0$ units of good 1 and $y\ge0$ units of good 2. Good 1 costs $2$ kronor per unit, good 2 costs $1$ krona per unit, and the consumer spends exactly $12$ kronor. The consumer's utility is $$ U(x,y)=xy\,. $$

  1. (a)

    Find all stationary points of $U$ on $\mathbb{R}^{2}$ and determine whether each is a local maximum, a local minimum or a saddle point.

    2 p
  2. (b)

    Use the Lagrange multiplier method to find the quantities $x$ and $y$ that maximise the utility subject to the budget constraint $2x+y=12,$ and explain why the point you find really is the maximum.

    5 p
  3. (c)

    What is the value of the Lagrange multiplier $\lambda$ at the optimum, and what does it tell you? Use it to estimate the maximal utility if the consumer instead has $13$ kronor to spend.

    3 p

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Problem 610 pComputeModel: practice exam 2, Problem 6 (this paper)

A geometric series with a parameter; a perpetuity and an annuity

Answer both parts.

  1. (a)

    For which real values of $x$ does the series $$ \sum_{n=0}^{\infty}\left(\frac{2x-1}{5}\right)^{n} $$ converge? For which value of $x$ is the sum of the series equal to $\tfrac{5}{2}$?

    5 p
  2. (b)

    A fund is to pay out $5\,000$ kronor at the end of every year, and the money in the fund earns $4\,\%$ interest per year.

    (i) How much money must the fund contain today if the payments are to continue for ever?

    (ii) Suppose instead that the payments are to be made for $25$ years only. Write the amount needed today as a closed formula (without a sum sign), and explain how it follows from the formula for a geometric sum. You do not need to evaluate it numerically.

    5 p

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Problem 710 pComputeModel: practice exam 2, Problem 7 (this paper)

A determinant with a parameter, the three outcomes, and Gauss

For a real number $a,$ consider the linear system $$ \left\{ \begin{aligned} x+y+az&=1\\ x+ay+z&=-2\\ ax+y+z&=1 \end{aligned} \right. $$ and let $\mathbf{A}$ be its coefficient matrix.

  1. (a)

    Compute $\det\mathbf{A}$ and determine for which values of $a$ the system has exactly one solution.

    3 p
  2. (b)

    For each of the remaining values of $a,$ determine whether the system has no solution or infinitely many solutions. Whenever there are infinitely many, give all of them.

    4 p
  3. (c)

    Solve the system for $a=0$ using Gaussian elimination.

    3 p

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Your points on the whole exam

0 of 70 p

The sum of the criteria you have ticked. It is stored only in this browser.