2019/EVEN/ECOH–203 (A/B)/167 ( 2 )

TDC Even Semester Exam., 2019

(a) Find maximin and minimax. 4
(b) Is there a saddle point? Which element
ECONOMICS is it? 2
( Honours ) (c) What are the optimal strategies for the
two players? 2
( 2nd Semester )
(d) Can you obtain payoff to player 2? 2
Course No. : ECOH–203

Full Marks : 50 2. (a) Explain two-person zero-sum game. 6

Pass Marks : 17
(b) What are the limitations of game
Time : 2 hours theory? 4
The figures in the margin indicate full marks
UNIT—II
for the questions
3. (a) Given the input coefficient matrix
Science students will answer Option—A and
Arts students will answer Option—B é 0 × 4 0 ×1 ù
A=ê ú
ë 0× 7 0×6 û
OPTION—A
and output vector
( For Science Students )
é 176 × 5 ù
( ELEMENTS OF MATHEMATICAL ECONOMICS ) x=ê ú
ë 558 × 8 û
Course No. : ECOH–203 (Science)
(i) Find the gross value added.
Answer five questions, taking one from each Unit (ii) Find the output level disposal to
final demand.
UNIT—I (iii) Show that the total disposal to final
1. Given demand is equal to the total value
é 5 8 6ù added. 4+3+1=8
A = ê 12 13 6 ú
ê ú (b) State Hawkins-Simon condition. 2
êë 11 10 9 ûú

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4. The following table gives the input-output 6. (a) Write a note on dynamic input-output
coefficients for a two-sector economy model. 6
consisting of agriculture and industry : (b) Mention the limitations of input-output
model. 4
Input ® A M
Industry ¯ UNIT—IV
A 0·10 0·50 é 300 ù
and F =ê ú 7. (a) What are the different components of a
M 0·20 0·25 ë 100 û linear programming problem? Construct
a linear programming problem taking a
(a) Find the gross outputs of the two
hypothetical example. 2+3=5
industries. 5
(b) Solve the following linear programming
(b) If the input coefficients for labour for
problem by graphic method : 5
the two industries are respectively 0·5
and 0·6, then find the total units of Minimize f = 0 × 6x1 + x 2
labour required. 3 subject to
(c) Check Hawkins-Simon condition. 2 10x1 + 4x 2 ³ 20
5x1 + 5x 2 ³ 20
UNIT—III 2x1 + 6x 2 ³ 12
5. Given x1, x 2 ³ 0

é 0 ×1 0 × 3 0 ×1 ù é 20 ù
A = 0 0 × 2 0 × 2 and F = ê 0 ú
ê ú 8. (a) Solve the following linear programming
ê ú ê ú problem by simplex method : 6
êë 0 0 0 × 3 úû êë 100 úû
Maximize p = 2x1 + 5x 2
(a) Find the output levels for three sectors
subject to
consistent with the model. 6
x1 + 4x 2 £ 24
(b) Explain economic meaning of third-
3x1 + 4x 2 £ 21
column sum. 2
x1 + x 2 £ 9
(c) Explain economic meaning of first row
sum. 2 where, x1, x 2 ³ 0

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(b) Define the following : 2×2=4 OPTION—B

(i) Infeasibility ( For Arts Students )
(ii) Unbounded solutions
( MATHEMATICS FOR ECONOMICS )

Course No. : ECOH–203 (Arts)

UNIT—V Answer five questions, taking one from each Unit

9. (a) Give primal as UNIT—I

Maximize f = 2 p1 + 6 p 2 1. (a) Find the solutions from the following :
subject to 3×2=6
dy
4 p1 + p 2 £ 5 (i) + 3y = 2; y(0) = 4
dt
3 p1 + 2 p 2 £ 7
dy
p1 + p 2 £ 2 (ii) + t 2y = 5t 2 ; y(0) = 6
dt
and p1 ³ 0, p 2 ³ 0
Find the dual of above primal. 3 (b) Derive the following formula using
four-step procedure : 4
(b) Define duality. Prove that the dual of æ ¶ ö
the dual is the primal. 2+5=7 ò Mdy + ò Ndt - ò çè ¶t ò Mdy ÷ø dt = c
2. (a) Given the demand and supply functions
10. (a) Give economic interpretation of duality dp
Qd = a + b p + d
taking a hypothetical example. 5 dt
Qs = g + lp (a, b, g, l > 0)
(b) Mention the limitation of linear dp
programming. 5 and = s (Qd - Qs )
dt
where s is the adjustment coefficient.
Find the time path of price. 7

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(b) What restrictions on the parameter d UNIT—III

would ensure dynamic stability? 3
5. (a) Verify whether the following functions
are homogeneous : 3×2=6
UNIT—II
(i) f (x, y ) = xy

3. (a) If the short-run total cost function is (ii) f (x, y ) = 2x + y + 3 xy

C = 2Q 3 - 15Q 2 + 30Q + 16
(b) State and prove Euler’s theorem using
then find out the level of output at a linear homogeneous production
which AVC is minimum and show that function. 4
MC = AVC at that level of output. 3+2=5
6. (a) Given the production function
(b) In a competitive market with demand
function Qd = 30 - 3 p and supply Q = AK aLb
function Qs = -5 + 2 p respectively. If Show that a + b > 1 implies increasing
government imposes a tax t per unit of returns to scale. 5
output, find the value of tax rate which
corresponds to maximum total revenue. (b) Show that the production function
What will be the equilibrium output
Q -b = aK -b + bL -b
after tax? 3+2=5
which is linearly homogeneous does
4. (a) If U = x y be a utility function and not possess unitary elasticity of
substitution between L and K . 5
4x + y = 48 is a budget constraint, then
find the equilibrium commodity bundle
of x and y. 5
UNIT—IV
(b) Calculate the elasticity of supply for the
following equation at p = 10 : 5 7. (a) Explain the Leontief model of
input-output analysis. 7
S = -77 + 4 p + p 2

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(b) Verify whether Hawkins-Simon (b) Find the gross value added from the
conditions are true for the following technological coefficient matrix
technological coefficient matrix : 3
é 0×2 0×3 0×2 ù
é 0 × 4 0 ×1 ù A = ê 0 × 4 0 ×1 0 × 2 ú
A=ê ú ê ú
ë 0× 7 0×6 û êë 0 × 1 0 × 3 0 × 3 úû

and output vector

8. Given the input coefficient matrix é 25 ù
é 0 × 05 0 × 25 0 × 34 ù X = ê 21 ú
ê ú
A = ê 0 × 33 0 × 10 0 × 12 ú êë 18 úû
ê ú 4
êë 0 × 19 0 × 38 0 úû

and final demand vector 10. (a) How is closed Leontief input-output
é 1800 ù model different from the open model? 4
D = ê 200 ú
ê ú (b) Find the final demand vector D that is
êë 900 úû consistent with output vector
(a) Find the output level. 5 é 2091 ù
(b) Explain the economic meaning of the X = ê 2270 ú
ê ú
elements 0·33 and 200. 2 êë 1699 úû
(c) Check the Hawkins-Simon conditions
when the input coefficient matrix is the
for the above. 3
following :
é 0×3 0×2 0×3 ù
UNIT—V A = ê 0 ×1 0 × 3 0 × 4 ú
ê ú
êë 0 × 2 0 × 3 0 úû 6
9. (a) Discuss the importance and limitations
of input-output analysis. 3+3=6
HHH

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