Mathematics for Economics (Practice Questions)

1) Solve the following equation using quadratic formula:

3𝑥 2 − 41𝑥 + 26 = 0

2) Given: f(x)= 2𝑥 3 − 5𝑥 2 + 8𝑥 − 20 find f(5) and f(-5)

3) Which of the following is a function and why:

a) 𝑦 2 = 4𝑎𝑥
b) 𝑥 2 = 4𝑎𝑦
c) 𝑥2 + 𝑦2 = 9
d) [(x2 / a2) – (y2 / b2)] = 1
e) x=5
f) y=5

4) Graph the following equations and indicate the slopes

a) 6y+3x-18=0
b) 8y-2x+16=0

5) Find the slope “m” for the given points:

a) (1,2) and (3,4)
b) (2,-3) and (5,18)

6) Find the domain and range of the following functions:

a) h(x)= 1/x
b) h(x)= √𝑥 + 2
c) h(x)= 2𝑥 2 + 3𝑥 − 1

7) A person has $100 to spend on two goods (X,Y) whose respective prices are $4 and $6.

a) Draw a budget line showing all the different combinations of the two goods that can be
bought with the given budget
b) What happens to the original budget line (b) if the budget falls by 10 percent,
c) if the price of X doubles,
d) if the price of Y falls to 4?

8) Given: Y =C + I, C = 50 + 0.8Y, and I0 = 50.

a) Graph the consumption function.
b) Graph the aggregate demand function, C + I0.
c) Find the equilibrium level of income from the graph.
9) Find the equilibrium price and quantity for the three substitute goods below.

10)
(a) Find the reduced form of the following income determination model where investment is
not autonomous but is a function of income.
(b) Find the numerical value of the equilibrium level of income (Ye).
(c) Show what happens to the multiplier.

Y= C + I; C= C0 + bY; I= I0 + aY

Where C0 = 65, I0 = 70, b = 0.6 and a=0.2