Prof. Abraham C. Camba Jr.

Mathematical Economics (ECO 05)

Economics Department
San Beda College

PROBLEM SET 1

1. Explain why the infinite decimal expansion

1.01001000100001000001… is not a rational number.

2. Which of the following equalities are true and which are

false? Justify your answers. (Note: a and b are positive,
m and n are integers.)

a) a0 = 0 d) am.bm = (ab)2m
b) (a+b)-n = 1/(a+b)n e) (a+b)m = am+bm
c) am.am = a2m f) an.bm = (ab)n+m

3. Give economic interpretations to each of the following

expressions and then use a calculator to find the
approximate values:

a) 50.(1.11)8
b) 10,000.(1.12)20
c) 5,000.(1.07)-10

References:

1. Chiang, Alpha C. Fundamental Methods of Mathematical Economics. Singapore:

McGraw-Hill, 1984
2. Jacques, Ian. Mathematics for Economics and Business. 2003 (GC519.5 J164)
3. Klein, Michael W. Mathematics for Economics and Business. 1998 (GC330.0151)
4. Thomas, R. L. Using Mathematics in Economics, 2nd ed. Wokingham, England:
Addison-Wesley, 1995.

“Providing honorable things,

not only in the sight of the Lord,
but also in the sight of men.”
- 2 Corinthians 8:21