EXERCISES FOR FINTECH AND ESOM

Lecturer: Dr Tong Thanh Trung

Department of Fundamental Mathematics

National Economics University

PART 1: LINEAR ALGEBRA AND ITS APPLICATIONS

1. Find the values of x and y if

�1 2� �
1 y�
� �=� �
x - y 2� �
� 0 2�
2. Find the values of x and y if
3 x� �
� 3 y�
� �=� �
x 1� �
� 2 1�
3. Find the values of x and y if:
3 4 x� �
� 3 4 y�
� =
2 5 7�
� � �
�
2 5 7�
�
4. Find the values of x and y if
x 1�
� 3 1�
�
� and
�y 0�
�
�
2 0�
� �
are to be equal.
5. Find the values of y and z if
1 0 0�
� 1 y
� z�
�
0 1 1� �
0 y z�
� � and � �
�
0 1 0�
� � �
�y 1 z�
�
are to be equal.
6. For A , given below obtain 3A :
 1 0 0�
�
�
0 1 0�
A=� �
�
0 0 1�
� �
7. For the matrices given below obtain A - B and A + B, where possible:
1 0 0�
�
� 2 0�
�
(a) 0 1 0�
A=� B=�
� , 2 -1�
� � �
0 0 1�
� �
1 0 0�
� -1 2 0 �
�
A=�
0 1 0� B=� �
�1 -1 1�
(b) � � ,
�
0 0 1�
� � �0 0 -1�
� �
8. Obtain for the row vector a and the column vector b below, the product ab and
ba
-1�
�
� �
a = [ 1 2 0] , b = �0 �
�
�1��
9. Perform the following matrix multiplication to obtain AB where possible if:
4 3�
�
1 0 0�
� �
(a) A=� , 1 1�
B=�
0 0 1�
� � �
�
� �
0 2 �
4 3�
�
1 0 0�
� �
(b) B=� , 1 1�
A=�
0 0 1�
� � �
�
0 2�
� �
10. Suppose that a firm produces two types of output using three types of input. Its
output quantities are given by the column vector:
15,000 �
�
q= �
27,000 �
� �
and the prices of theses are given in the row vector p = [ 10 12] . The amounts of
inputs it uses are given in the column vector
 11,000 �
�
�
15,000 �
z= � �
�
15,000 �
� �
and the input prices are given by w = [ 10 10 8] . Find the profit of this firm.
11. Verify that the matrix I 3 below is idempotent:

1 0 0�
�
�
0 1 0�
I3 = � �
�
0
� 0 1 �
�
�6 -2 -5 1�
�-2 8 -2 -4 �
1� �
12. Verify that the matrix A below is idempotent: A =
11 -5 -2 6
� 1�
� �
�1 -4 1 2�
13. Verify that the matrix A below is idempotent:
�x -x �
A=�
x -1 1 - x�
� �
14. For the matrices A and B below, verify that trace( AB ) = trace( BA) :
3 1�
�
1 -1 1�
�
A=� ,
� B=�
0 1�
2 2 0 � �
� � �
� �
1 1�
15. For the matrix A below, obtain trace( A) , trace( AA) , trace( AAA) :
�1 6 -1 3 1 6 �
(a) A=�
-1 3 2 3 -1 3�
� �
�
�1 6 -1 3 1 6 �
�
�6 -2 -5 1�
�
-2 8 -2 -4 �
1� �
(b) A=
-5 -2 6
11 � 1�
� �
�1 -4 1 2�
16. Compute the determinant of the following matrices:
 3 0 4�
� 2 3 -4 �
�
(a) �
2 3 2�
A=� �
(c) C = �
4 0 5�
� �
0 5 -1�
�
� � �
5 1 6�
� �
2 -4 3�
� 4 3 0�
�
(b) B = �
3 1 2� (d) D = �
6 5 2�
� � � �
�
1
� 4 -1�
� �
9
� 7 3 �
�
17. Obtain the inverse of each matrix in question 1.
18. Find the determinant of B:
�a b c �
B=�
�d e f� �
�
�3 g 3h 3i �
�
if
a b c
A= d e f =7
g h i
19. Find the determinant of C:
a b
� c�
�
C=�
g h i�
�
�
d e
� f�
�
if
a b c
A= d e f =3
g h i
20. Find the determinant of D:
�a b c �
�
3d + a 3e + b 3 f + c �
D=� �
�
� g h i �
�
if
 a b c
A= d e f =3
g h i
3
21. Compute A where:
1 0 1�
�
�
1 1 2�
A=� �
�
1
� 2 1 �
�
22. Obtain the inverse of the following matrices by the cofactor method:
1 2 3�
� �1 2 -1� 3 0 0�
�
(a) �
0 1 2� (b ) � � (c) �
0 -1 0 �
� � �0 1 0 � � �
�
0
� 0 1 �
� -5 2 3�
�
� � �
0
� 0 3 �
�
23. Find the inverse of the following matrices by the method of Gauss-Jordan
elimination
1 2 -1�
� 3 0 1�
�
(a) �
0 -1 2� (b) �
0 2 1�
� � � �
�
0
� 1 0 �
� �
1
� 2 0 �
�
24. Suppose that a firm produces three outputs y1 , y2 and y3 with three inputs
z1 , z 2 and z3 . The input-requirements matrix is given by A below:
1 0 5�
�
�
1 1 0�
A=� �
�
3 2 6�
� �
If the firm wants to produce 7 units of y1 , 5 units of y2 , and 18 units y3 , how
much of z1 , z2 and z3 will be require?
25. Compute A in as few steps as possible:
�1 -3 1 -2 �
�2 -5 -1 -2 �
A=� �
�0 -4 5 1�
� �
-3
� 10 -6 8�
26. Find the determinant of the following matrices:
 �1 5 -6 �
(a) �
A=�-1 -4 4 ��
�
�-2 -7 9 ��
�1 3 0 2 �
�
-2 -5 7 4 �
(b) B = � �
�3 5 2 1�
� �
�-1 0 -9 -5�

�1 -1 -3 0�
�0 1 0 4�
(c) C = � �
-1 2 8
� 5�
� �
-1 -1 -2
� 3�
27. Evaluate the following determinants:
1 2 0 9 2 7 0 1 1 2 1 4
2 3 4 6 5 6 4 8 2 3 4 6
a) b) c)
1 6 0 -1 0 0 9 0 1 6 -2 -3
0 -5 0 8 1 -3 1 4 -3 1 -5 -9
28. Show that: ( ABC )-1 = C -1B -1 A-1.
29. Given two the following matrices

�4 1 2 3 �
�2 -3 -1 7 � �
� � -7 -2 m 1 �
A = -4 1 -2 - m ; B = � �
� � �10 3 5 6 �
�
�-1 -5 4 10 �
� � �
�-6 -1 1 -2 �

a) Determine the elements of second row of matrix AB’ (where B’ is the

transpose matrix of the matrix B).
b) Use Cramer’s rule to solve the system of linear equations with A as the
matrix expansion (the last column of A is a unrestrained coefficient
column).
c) Find the values of m to matrix B is invertible and the element of second
row, third column of matrix 4B-1 equals 6.
30. Given two the following matrices
 �3 2 -4 m �
�4 3 2 -1 � �
� � -2 -1 3 1�
A = -a 1 -3 -14 ; B = � �
� � �5 -3 4 -2 �
�3 -2 -1 m �
� � � �
�6 4 5 3 �

a) Determine the elements of third row of matrix AB T (where BT is the

transpose matrix of the matrix B).
b) Use Cramer’s rule to solve a system of linear equations with A as the
matrix expansion (the last column of A is a free coefficient column).
c) Find the values of m to matrix B is invertible and the element of second
3
row, third column of matrix -3B-1 equals .
5
31. Suppose that the demand and supply functions are numerically as follows:
Qd 1 = 10 - 2 P1 + P2
Qs1 = -2 + 3P1
Qd 2 = 15 + P1 - P2
Qs 2 = -1 + 2 P2

What will be the equilibrium solution?

32. The demand and supply functions of a two-commodity market model are
follows:
Qd 1 = 18 - 3P1 + P2 Qd 2 = 12 + P1 - 2 P2
Qs1 = -2 + 4 P1 Qs 2 = -2 + 3P2

Use Crammer’s rule to find the Pi and Qi ( i = 1,2 ) .

33. Given the following model:
Y = C + I 0 + G0
C = a + b( Y - T ) ( a > 0,0 < b < 1) [ T : taxes ]
T = d + tY ( d > 0,0 < t < 1) [t : income tax rate ]
a) How many endogenous variables are there?
b) Find Y , T and C.
34. Let the national-income model be:
 Y = C + I0 + G
C = a + b ( Y - T0 ) ( a > 0, 0 < b < 1)
G = gY ( 0 < g < 1)
a) Identify the endogenous variables.
b) Give the economic meaning of the parameter g.
c) Find the equilibrium national income.
d) What restriction on the parameters is needed for solution to exist?