Your code number:

CODE A MIDTERM EXAM 2- ADVANCED MATHEMATICS

27 May 2020
Duration: 60 minutes

Problem 1: (5 pts) Consider the following macroeconomic model:

National income:

Consumption:

Disposable income:

Taxation:

where and denote investment, government expenditure,

exports, imports and fixed tax, respectively.
1) Show that this system can be expressed as where

2) Find the determinant of

3) Use Cramer’s rule to find C.
4) Write down the autonomous investment multiplier for and deduce the
direction of change in consumption due to an increase in investment.

Problem 2: (5 pts) A specialist bakery makes two types of cakes, chocolate and
fruit. Each chocolate cake uses 600 grams of flour, 100 grams of butter and 200
grams of sugar. The corresponding fgures for a fruit cake are 300 grams, 100
grams and 300 grams. The bakery makes a proft of $20 and $24 for each
chocolate and fruit cake sold. The bakery wants to make as many cakes of each
type that it can to maximise total proft. However, it only has 96 kg flour, 20 kg
butter and 52 kg sugar available each week. You may assume that there are no
other restrictions and that the bakery can sell all cakes that it makes. How many
cakes of each type should be baked each week to maximise proft?
Your code number:

CODE B MIDTERM EXAM 2- ADVANCED MATHEMATICS

27 May 2020
Duration: 60 minutes

Problem 1: (5 pts) Consider the following macroeconomic model:

National income:

Consumption:

Disposable income:

Taxation:

where and denote investment, government expenditure,

exports, imports and fixed tax, respectively.
1) Show that this system can be expressed as where

2) Find the determinant of

3) Use Cramer’s rule to find
4) Write down the government expenditur multiplier for and deduce the
direction of change in national income due to an increase in government
expenditure.

Problem 2: (5 pts) A farmer wishes to feed pigs with minimum cost but needs
to ensure that each receivesat least 1.6 kg of protein, at least 0.3 kg of amino
acid and no more than 0.3 kg of calcium per day. Foods available are fish meal
and meat scraps, which contain protein, calcium and amino acid according to
the following table
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Fish meal costs $0.65 per kg, whereas meat scraps cost $0.52 per kg. Determine
a minimum-cost feeding programme.
CODE C MIDTERM EXAM 2- ADVANCED MATHEMATICS
27 May 2020
Duration: 60 minutes

Problem 1: (5 pts) Consider the following macroeconomic model:

National income:

Consumption:

Disposable income:

Taxation:

where and denote investment, government expenditure,

exports, imports and fixed tax, respectively.
1) Show that this system can be expressed as where

2) Find the determinant of

3) Use Cramer’s rule to find
4) Write down the autonomous investment multiplier for and deduce the
direction of change in taxation due to an increase in investment.

Problem 2: (5 pts) A specialist bakery makes two types of cakes, chocolate and
fruit. Each chocolate cake uses 600 grams of flour, 100 grams of butter and 200
grams of sugar. The corresponding fgures for a fruit cake are 300 grams, 100
grams and 300 grams. The bakery makes a proft of $20 and $24 for each
chocolate and fruit cake sold. The bakery wants to make as many cakes of each
type that it can to maximise total proft. However, it only has 96 kg flour, 20 kg
butter and 52 kg sugar available each week. You may assume that there are no
other restrictions and that the bakery can sell all cakes that it makes. How many
cakes of each type should be baked each week to maximise proft?
Your code number:
Your code number:

CODE D MIDTERM EXAM 2- ADVANCED MATHEMATICS

27 May 2020
Duration: 60 minutes

Problem 1: (5 pts) Consider the following macroeconomic model:

National income:

Consumption:

Disposable income:

Taxation:

where and denote investment, government expenditure,

exports, imports and fixed tax, respectively.
1) Show that this system can be expressed as where

2) Find the determinant of

3) Use Cramer’s rule to find
4) Write down the autonomous investmentm multiplier for and deduce
the direction of change in national income due to an increase in
investment.

Problem 2: (5 pts) A specialist bakery makes two types of cakes, chocolate and
fruit. Each chocolate cake uses 600 grams of flour, 100 grams of butter and 200
grams of sugar. The corresponding fgures for a fruit cake are 300 grams, 100
grams and 300 grams. The bakery makes a proft of $20 and $24 for each
chocolate and fruit cake sold. The bakery wants to make as many cakes of each
type that it can to maximise total proft. However, it only has 96 kg flour, 20 kg
butter and 52 kg sugar available each week. You may assume that there are no
other restrictions and that the bakery can sell all cakes that it makes. How many
cakes of each type should be baked each week to maximise proft?