Prof. Abraham C. Camba Jr.

Mathematical Economics (ECO 05)

Economics Department
San Beda College

PROBLEM SET 2

1. Expand each of the following:

a) (x+2y)2 c) (3u-5v)2
b) (1/x – x)2 d) (2z-5w)(2z+5w)

2. Expand and simplify:

a) 5a2-3b-(-a2-b)-3(a2+b) c) 12t2-3t-16-2(6t2-2t+8)
b) –x(2x-y)+y(1-x)+3(x+y)

3. Factor the given expressions:

a) K3 - K2L d) K2 - 2KL + L2
b) KL3 + KL e) K3L - 4K2L2 + 4KL3
c) L2 - K2 f) K-3 - K-6

4. A population increased from 40 million to 60 million in 12 years. What

yearly percentage growth rate p achieves this increase?

5. A firm using x units of inputs produces 32x3/2 units of its output by using
process A, or 4x3 units by using process B. For what levels of input does
process A produce more than process B?

DUE DATE: September 9, 2009

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