EC400 LSE

Revision Mathematics

Quizzes 1 - 5

Margaret Bray

London School of
Economics
Contents

1 How to do Revision Mathematics 1

1.1 Quizzes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Quiz Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Quiz 1: Introduction to Vectors and Matrices 3

2.1 Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Diagrams for Vector Addition and Scalar Multiplication (essential
topic, questions 1 - 3) . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3 Vector Addition, Subtraction and Scalar Multiplication with Num-
bers (essential topic, questions 4 - 7) . . . . . . . . . . . . . . . . 4
2.4 Rules For Vectors (essential topic, questions 8 and 9) . . . . . . . 5
2.5 Inner Products (essential topic, questions 10 - 13) . . . . . . . . . 5
2.6 Length (essential topic, questions 14 -16) . . . . . . . . . . . . . . 6
2.7 Using Matrix Algebra: (essential topic, questions 17 - 37) . . . . 7
2.8 Special Matrices (useful topic, questions 38 and 39) . . . . . . . . 9

3 Quiz 2: Vectors 11
3.1 Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 The Least Squares Problem (useful topic, questions 1-3) . . . . . 11
3.3 Inequalities for Vectors (useful topic, questions 4 - 5) . . . . . . . 13
3.4 The Angle Between Two Vectors (essential topic, questions 6-8) . 13
3.5 Vectors, Lines, Planes and Hyperplanes (essential topic, questions
9-10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4 Quiz 3: Matrices 17
4.1 Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.2 Linear Independence, Spanning and Rank (useful topic questions
1 - 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.3 Matrix Rank and Inverse (useful topic, questions 6 - 12) . . . . . 20
4.4 Determinants (useful topic questions 13 and 14) . . . . . . . . . . 21
4.5 Eigenvalues and Eigenvectors (more challenging topic questions
15 - 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

5 Multivariate Calculus 25
5.1 Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.2 Partial derivatives (essential topic, questions 1-3) . . . . . . . . . 25
5.3 Homogeneous Functions (essential topic, questions 4-7) . . . . . . 27

iii
iv CONTENTS

5.4 The Chain Rule in Consumer Theory (essential topic questions 8

-11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
5.5 Second derivatives (useful topic, question 12) . . . . . . . . . . . 32
5.6 The Implicit Function Theorem (more challenging topic, but you
need to know the result of question 13) . . . . . . . . . . . . . . . 32
5.7 Taylor Approximations for Functions of Several Variables (more
challenging topic, question 14) . . . . . . . . . . . . . . . . . . . 33

6 Quiz 5: Introduction to Topology 35

6.1 Topics Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
6.2 Boundaries, Open and Closed Set (useful topic, questions 1-3) . 35
6.3 Closed Sets, Bounded Sets, Compact Sets and Continuous Func-
tions (more challenging topic, questions 4-7) . . . . . . . . . . . . 37
6.4 Continuity for Consumer Theory (more challenging topic, ques-
tion 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Chapter 1

How to do Revision
Mathematics

1.1 Quizzes
This revision maths component of EC400 covers material that we hope you have
already studied. But you may well have forgotten some of it. It is an entirely
online short course which you should study before you come to LSE.
The first thing you should do are the multiple choice quizzes contained in
this booklet; you should do these online. Once you have done a quiz online you
get a document with the answers. These quizzes are diagnostic; you may find
that you can do them quickly and without difficulty. Note that some questions
have more than one right answer. Each topic in the quizzes is labelled as
essential, useful or more challenging. If you have difficulty only with the more
challenging questions you should move on to preparation for the other parts of
EC400. Otherwise you need to do some reading.
If it is a long time since you did any maths you may need to review some more
basic material, in particular functions of a single variable, including calculus.
The background quizzes and notes on the website take you through this.

1.2 Reading
Start with the revision maths notes on this website which are brief and closely
aligned with the quizzes. You find it helpful to refer back to relevant material
and books you have already studied.

If you need additional material you may also find helpful:

:
Sydsaeter, H and P. Hammond, Essential Mathematics for Economic Analy-
sis. Prentice Hall.

You can use any edition of Sydsaeter and Hammond. Be careful on the exact
title, there is a related book Sydsaeter, K, P. Hammond, A. Seirstad and A.

1
2 CHAPTER 1. HOW TO DO REVISION MATHEMATICS

Strom, Further Mathematics for Economic Analysis which is not appropriate

for revision maths.

Chapters 4, 6 and 7 of Sydsaeter and Hammond cover functions of a single

variable, including calculus. Chapters 11 and 12 on multivariate calculus, and
15 and 16 on matrices cover the core material of revision maths.

Simon, C.P. and L. Blume, Mathematics for Economists, Norton

is the core text for maths for microeconomics. Chapters 2 - 5 cover back-
ground material on functions of a single variable, including calculus. Chapters
8 - 11 on matrices and 13 and 14 on multivariate calculus cover the core material
of revision maths.

1.3 Quiz Content

• Quiz 1: Introduction to Vectors and Matrices.

— This covers basic material. Look it is this document. If you are

completely confident that you know all this skip the quiz.

• Quiz 2: Vectors

— Do this. It focuses on the length and inner product of vectors, ideas

you will need both in economics and econometrics.

• Quiz 3: Matrices

— Do this. It focuses on the question of when a matrix has an in-

verse and relates it to the ideas of spanning and linear independence.
This is very important in econometrics. There are also questions on
determinants and eigenvalues and eigenvectors

• Quiz 4: Multivariate calculus

— Do this. If you have difficulties with multivariate calculus it will

affect you every day you spend at LSE.

• Quiz 5: Introduction to Topology

— This quiz is optional and more challenging. It is intended for MRes

students and for students who wish to take EC487 (Advanced Micro-
economics). EC487 is compulsory for MSc Econometrics and Math-
ematical Economics students; for other students EC487 is available
only with permission of the instructor.
Chapter 2

Quiz 1: Introduction to
Vectors and Matrices

2.1 Topics Covered

This quiz consists of simple questions on vectors and matrices. Many people
will be able to do this quiz very fast. These questions covers introductory
topics from chapters 2 and 3. of the revision maths notes. This is almost all
essential material. Look through the quiz document to see if you are completely
confident that you know it all, if so you can skip doing the quiz online.

2.2 Diagrams for Vector Addition and Scalar

Multiplication (essential topic, questions 1
- 3)
In Figure 2.1
• 0u is the vector u, 0v is the vector v and similarly for 0w, w, 0x, x and
0y, y .
• The lines 0u and wv are parallel and are the same length.
• The lines 0w and uv are parallel and are the same length.
• The lines 0w and wx are the same length. The lines yw and wv are the
same length.

Quiz 1 question 1 What is u + w?

1. u 2. v 3. w 4. x 5. y 6. none of these.

Quiz 1 question 2 What is 2w?

1. u 2. v 3. w 4. x 5. y 6. none of these.

Quiz 1 question 3 What is w − u?

1. u 2. v 3. w 4. x 5. y 6. none of these.

3
4CHAPTER 2. QUIZ 1: INTRODUCTION TO VECTORS AND MATRICES

v
w
y

u
0

Figure 2.1: Quiz 1: questions 1-3

2.3 Vector Addition, Subtraction and Scalar Mul-

tiplication with Numbers (essential topic,
questions 4 - 7)

Questions 4-7 work with the vectors

     
1 6 7
u =  2  v= 4  w= 6 
3 10 13


5    
  1 3
x = 2 y= and z = .
2 6
7

Quiz 1 question 4 What is u + v?

1. u 2. v 3. w 4. x 5. z 6. none of these.

Quiz 1 question 5 What is u + y?

1. u 2. v 3. w 4. x 5. z 6. none of these.

Quiz 1 question 6 What is w − u?

1. u 2. v 3. w 4. x 5. z 6. none of these.

Quiz 1 question 7 What is 3y?

1. u 2. v 3. w 4. x 5. z 6. none of these.
2.4. RULES FOR VECTORS (ESSENTIAL TOPIC, QUESTIONS 8 AND 9)5

2.4 Rules For Vectors (essential topic, questions

8 and 9)

Quiz 1 question 8 Is the statement x + y = y + x

1. true for all n vectors x and y

2. true for some but not all n vectors x and y
3. true for no n vectors x and y

Quiz 1 question 9 Is the statement

k(x + y) = kx + ky.

1. true for all real numbers k and all n vectors x and y

2. true for some but not all real numbers k and all n vectors x and y
3. true for no real numbers k and all n vectors x and y.

2.5 Inner Products (essential topic, questions 10

- 13)
Note that some questions in this section use the term scalar. In this context
scalar means real number.

Quiz 1 question 10 The inner product (sometimes called the dot product)
of the n vectors x and y is defined as:
n

x′ y = xi yi .
i=1

If x and y are n vectors is the statement x′ y = y′ x

1. true for all n vectors x and y

2. true for some but not all n vectors x and y
3. true for no n vectors x and y

Quiz 1 question 11 If x and y are n vectors and k is a real number is the

statement
k(x′ y) = (kx)′ y = x′ (ky)

1. true for all real numbers k and all n vectors x and y

2. true for some but not all real numbers k and all n vectors x and y
3. true for no real numbers k and all n vectors x and y
6CHAPTER 2. QUIZ 1: INTRODUCTION TO VECTORS AND MATRICES

Quiz 1 question 12 Think about the n vectors t, u, v and w, and the scalars
a, b, c, d. Click the correct statements
1. t′ (u + v) = t′ u + t′ v for all t, u, v and w
2. (u + v)′ t = t′ (u + v) for some t, u, v and w.
3. (t + w)′ (u + v) = t′ u + w′ u + t′ v + w′ v for all t, u, v and w.
′
4. (t + w) (u + v) = u′ t + u′ w + v′ t + v′ w for some t, u, v and w.
′
5. (at+bw) (cu+dv) = act′ u+bcw′ u+adt′ v+bdw′ v for all a, b, c, d, t, u, v
and w.

Quiz 1 question 13 If y and x are n vectors and b a scalar, click the correct
statements.
1. (y−bx)′ (y−bx) = y′ y + x′ xb2 .
2. (y−bx)′ (y−bx) = y′ y+bx′ y+by′ x + x′ xb2 .
3. (y−bx)′ (y−bx) = y′ y − x′ yb−y′ xb+x′ xb2
4. (y−bx)′ (y−bx) = y′ y+2x′ yb+x′ xb2 .
5. (y−bx)′ (y−bx) = y′ y−2x′ yb+x′ xb2

2.6 Length (essential topic, questions 14 -16)

Quiz 1 question 14 What is the length of the vector (x1 , x2 ) in 2 dimensional

space?
1. x21 + x22
2. x1 + x2
3. x1 x2
1
4. (x1 + x2 ) 2
 1
5. x21 + x22 2
6. none of the above

Quiz 1 question 15 What is the length of the vector (x1 , x2 , x3 ) in 3 dimen-

sional space?
1. x21 + x22 + x23
2. x1 + x2 + x3
3. x1 x2 x3
1
4. (x1 + x2 + x3 ) 2
 1
5. x21 + x22 + x23 2
6. none of the above
2.7. USING MATRIX ALGEBRA: (ESSENTIAL TOPIC, QUESTIONS 17 - 37)7

Quiz 1 question 16 If x′ x = 0 what does this tell you about x?

1. x1 .> x2 .> x3 .....> xn

2. x1 < x2 < x3 .... < xn

3. xi = 0 for i = 1, 2...n.

4. x = 0

5. none of the above.

2.7 Using Matrix Algebra: (essential topic, ques-

tions 17 - 37)
For questions 17 - 37

2 5 1 −10 3 −5
A= B= C=
1 3 −2 −1 −1 2

−8 −25 2 0 6 −5
D= E= F =
−5 −13 0 1 −2 2

6 −10 6 −2 1 0
G= H= I=
−1 2 −5 2 0 1
   
3 2 8 21
6 −1
J= K= 1 4  L =  6 17  .
−10 2
2 1 5 13

Look at figure 2.2 which refers to the matrices A − L above. Circle the
right answer and do the multiple choice questions on Moodle. For example
for question 17 A + B = C so click alternative 3C. You will often be able to
answer these questions more quickly if you bear in mind your answers to earlier
questions and the facts about matrix algebra in sections 1-8 of chapter on 3 on
matrices.
8CHAPTER 2. QUIZ 1: INTRODUCTION TO VECTORS AND MATRICES

question question alternatives

number
17 A+B 1A 2B 3C 4D 5E 6 undefined
18 B+A 1A 2B 3C 4D 5E 6 undefined
19 A+K 1H 2I 3J 4K 5L 6 undefined
20 KA 1H 2I 3J 4K 5L 6 undefined
21 AK 1H 2I 3J 4K 5L 6 undefined
22 AB 1A 2B 3C 4D 5E 6 undefined
23 BA 1A 2B 3C 4D 5E 6 undefined
24 CE 1F 2G 3H 4I 5J 6 undefined
25 EC 1F 2G 3H 4I 5J 6 undefined
26 F' 1F 2G 3H 4I 5J 6 undefined
27 H' 1F 2G 3H 4I 5J 6 undefined
28 G' 1F 2G 3H 4I 5J 6 undefined
29 (EC)' 1F 2G 3H 4I 5J 6 undefined
30 E'C' 1F 2G 3H 4I 5J 6 undefined
31 EA+EB 1F 2G 3H 4I 5J 6 undefined
32 AE+BE 1F 2G 3H 4I 5J 6 undefined
33 KI 1G 2H 3I 4J 5K 6 undefined
34 IH 1G 2H 3I 4J 5K 6 undefined
35 AC 1G 2H 3I 4J 5K 6 undefined
36 CA 1G 2H 3I 4J 5K 6 undefined
37 A'C' 1G 2H 3I 4J 5K 6 undefined

Figure 2.2: Questions 17 - 27

2.8. SPECIAL MATRICES (USEFUL TOPIC, QUESTIONS 38 AND 39) 9

2.8 Special Matrices (useful topic, questions 38

and 39)
Quiz 1 question 38 Let
 
1 0 0 0
 0 1 0 0 
I=
 0

0 1 0 
0 0 0 1
Click the correct statements
1. I has an inverse.
2. I is a diagonal matrix.
3. I is a lower triangular matrix.
4. I is a symmetric matrix.
5. I is an orthonormal matrix.
6. I is an idempotent matrix.

Quiz 1 question 39 Let

 
0.5 0 0.5
A= 0 1 0 
0.5 0 0.5
Click the correct statements
1. A is a lower triangular matrix.
2. A is a symmetric matrix.
3. A is an orthonormal matrix.
4. A is an idempotent matrix

Answer: 2 and 4 are correct.

1. A is not a lower triangular matrix.
2. A is a symmetric matrix because A′ = A
Note that
    
0.5 0 0.5 0.5 0 0.5 0.5 0 0.5
A2 = AA′ =  0 1 0   0 1 0  =  0 1 0  .
0.5 0 0.5 0.5 0 0.5 0.5 0 0.5
implying that
3. A is not an orthonormal matrix because A′ A = (AA′ )′ = I.
4. A is an idempotent matrix because A2 = A.
10CHAPTER 2. QUIZ 1: INTRODUCTION TO VECTORS AND MATRICES
Chapter 3

Quiz 2: Vectors

3.1 Topics Covered

This quiz covers the topics from chapter 2 of the revision maths notes on vectors
listed below. The chapter also covers some more basic material which is tested
in quiz 1.
• The Least Squares Problem (useful topic, questions 1-3)
• Inequalities for Vectors (useful topic, questions 4-5)
• The Angle Between Two Vectors (essential topic, questions 6-8)
• Vectors, Lines, Planes and Hyperplanes (essential topic, questions 9-10)

3.2 The Least Squares Problem (useful topic,

questions 1-3)
Quiz 2 question 1 Let
   
0 4
x= and y =
1 3
Find the value of the scalar b that minimises y−bx . Note that this is the
same as the value of b that minimises y−bx2 , which is easier to work with.
Show x, y, bx and y−bx on an accurate diagram. Which of the following
statements are true?
1. b = 2
2. b = 3
3. b = 4
4. x′ (y−bx) = (y−bx)′ x =1.
5. x′ (y−bx) = (y−bx)′ x =0.
6. The vectors x and y−bx are parallel.
7. The vectors x and y−bx are at 90◦ to each other.

11
12 CHAPTER 3. QUIZ 2: VECTORS

Quiz 2 question 2 Let

   
1 10
x= and y =
2 5
Find the value of the scalar b that minimises y−bx . Note that this is the
2
same as the value of b that minimises y−bx , which is easier to work with.
Show x, y, bx and y−bx on an accurate diagram. Which of the following
statements are true?
1. b = 2
2. b = 3
3. b = 4
4. x′ (y−bx) = (y−bx)′ x =1.
5. x′ (y−bx) = (y−bx)′ x =0.
6. The vectors x and y−bx are parallel.
7. The vectors x and y−bx are at 90◦ to each other.

Quiz 2 question 3 Let

   
x1 y1
 x2   y2 
   
x=
 . 
 y=
 . 

 .   . 
xn yn
Assume that x =0. Find the value of the scalar b that minimises y−bx.
Note that the value b that minimises y−bx is the same as the value of b that
minimises y−bx2 , which is a quadratic function of b. If possible find the
minimum by completing the square.
Note also that bx is a vector that is a scalar multiple of x so lies on the same
line as x. The vector y−bx joins a point on this line y. Thus bx is the point
on the line through x that is closest to y. Draw a pair of vectors x and y and
use this property to find bx.
Which of the following statements are true?
n 2
n
1. b = (x′ x) x′ y = i=1 xi ( i=1 xi yi ) .
n 2
n
2. b = − (x′ x) x′ y = − i=1 xi ( i=1 xi yi ) .
n 2 −1

3. b = (x′ x)−1 x′ y = i=1 xi ( ni=1 xi yi ) .

4. x′ (y−bx) = (y−bx)′ x =1.

5. x′ (y−bx) = (y−bx)′ x =0.
6. The vectors x and y−bx are parallel.
7. The vectors x and y−bx are at 90◦ to each other.
3.3. INEQUALITIES FOR VECTORS (USEFUL TOPIC, QUESTIONS 4 - 5)13

3.3 Inequalities for Vectors (useful topic, ques-

tions 4 - 5)

Quiz 2 question 4: the Cauchy-Schwarz Inequality Click the statements

that hold for all vectors x and y.
1
1. x′ y ≤
x y

2. x′ y ≤ (x′ x) (y′ y)
1 1
3. x′ y ≤ (x′ x) 2 (y′ y) 2

4. x′ y ≤ (x′ x)−1 (y′ y)−1

5. x′ y ≤ x y
6. |x′ y| ≤ x y

Quiz 2 question 5: the Triangle Inequality Click the statements that

hold for all vectors x and y.

1. x + y < x + y

2. x + y ≤ x + y
3. x + y = x + y
4. x + y > x + y
5. x − y < x − y
6. x − y ≤ x + y

3.4 The Angle Between Two Vectors (essential

topic, questions 6-8)

Quiz 2 question 6 Which of the following statements is true if θ is the angle

between the vectors x and y?
cos θ
1. x′ y =
x y

2. x′ y = (x′ x) (y′ y) cos θ

1 1
3. x′ y = (x′ x) 2 (y′ y) 2 cos θ

4. x′ y = (x′ x)−1 (y′ y)−1 cos θ

5. x′ y = x y cos θ
14 CHAPTER 3. QUIZ 2: VECTORS

Quiz 2 question 7 If x′ y = 0 x = 0 and y = 0 what is the angle between x

and y?

1. 0◦
2. 45◦
3. 90◦
4. 135◦
5. 180◦
√ √
Quiz 2 question 8 If x′ = (3, 4) and y′ = (− 2, 7 2) what is the angle
between x and y?

1. 0◦
2. 45◦
3. 90◦
4. 135◦
5. 180◦

3.5 Vectors, Lines, Planes and Hyperplanes (es-

sential topic, questions 9-10)
Quiz 2 question 9 Figure 3.1 shows the line p′ (x − x0 ) = 0 and four vectors
a, b, c and d. Which of these vectors could not be p?

1. a
2. b
3. c
4. d

Quiz 2 question 10 If p,x and x0 are elements of R3 the set of points

satisfying p′ (x − x0 ) = 0 is a:

1. line
2. plane
3. hyperplane
4. none of the above
3.5. VECTORS, LINES, PLANES AND HYPERPLANES (ESSENTIAL TOPIC, QUESTIONS 9-10)15

x2 a

x0

d c p’(x – x0) = 0

x1

Figure 3.1: question 9

16 CHAPTER 3. QUIZ 2: VECTORS
Chapter 4

Quiz 3: Matrices

4.1 Topics Covered

This quiz covers topics from chapters 3, 4 and 5 of the revision maths notes,
which cover matrices and the related topics of determinants eigenvalues and
eigenvectors.
. Some of the more elementary material is covered in Quiz 1. The treatment
in the notes is "cookbook" in the sense that you are given intuition but not proof.
If you have seen a proof based approach this is good.. If you haven’t this is not
the time to do so, you need to focus on other things, in particular multivariate
calculus which is essential for maths for micro and maths for macro..
This quiz covers topics from chapter ?? on matrices.
• Linear Independence, Spanning and Rank (useful topic, Quiz 3 Questions
1-5)
• Matrix Rank and Inverse (useful topic, Quiz 3 Questions 6-12)
• Determinants (useful topic Quiz 3 Questions 13 and 14)
• Eigenvalues and Eigenvectors (more challenging topic, Quiz 3 Questions
15-20)

The absolute minimum you must know about matrices at this stage is
• No matrices that are not square matrices have an inverse. Some square
matrices do not have an inverse. There are things called rank and de-
terminant that tell you whether a square matrix has an inverse. The
definitions of rank and determinant and how to find them are not essen-
tial.
• the definition of an eigenvalue and eigenvector

If this is all you know you may find that there are questions that you
cannot do in the September course exam, and you will have major problems,
particularly in econometrics if you do not catch up on matrices very fast after
the September course exam..

17
18 CHAPTER 4. QUIZ 3: MATRICES

4.2 Linear Independence, Spanning and Rank

(useful topic questions 1 - 5)
In this part of the quiz the matrices are:


  
1 3 1 −1 0
1 0 2
A = B= 2 6  C= 0 2 3 
2 1 3
3 9 0 0 2
 
  2 1 0 0
1 −1 0  0 0 −1 1 
D =  0 1 1  E=  0 0 0 3 

1 0 1
0 0 0 0
   
1 1 4 6
F = and G =
3 4 −2 −3

Quiz 3 Question 1 Click the correct statements

1. The columns of A are linearly independent.

2. The rows of A are linearly independent.

3. The columns of A span R2 .

4. The columns of A span R3 .

5. The rows of A span R3 .

6. Rank A = 1.

7. Rank A = 2.

Quiz 3 Question 2 Click the correct statements

1. The columns of B are linearly independent.

2. The rows of B are linearly independent.

3. The columns of B span R2 .

4. The columns of B span R3 .

5. The rows of B span R3 .

6. Rank B = 1.

7. Rank B = 2.
4.2. LINEAR INDEPENDENCE, SPANNING AND RANK (USEFUL TOPIC QUESTIONS 1 - 5)19

Quiz 3 Question 3 Click the correct statements

1. The columns of C are linearly independent.

2. The rows of C are linearly independent.

3. The columns of C span R2 .

4. The columns of C span R3 .

5. The rows of C span R3 .

6. Rank C = 1.

7. Rank C = 2.

Quiz 3 Question 4 Click the correct statements

1. The columns of D are linearly independent.

2. The rows of D are linearly independent.

3. The columns of D span R2 .

4. The columns of D span R3 .

5. The rows of D span R3 .

6. Rank D = 1.

7. Rank D = 2.

Quiz 3 Question 5 Click the correct statements

1. The columns of E are linearly independent.

2. The rows of E are linearly independent.

3. The columns of E span R2 .

4. The columns of E span R3 .

5. The rows of E span R3 .

6. Rank E = 3.

7. Rank E = 4.
20 CHAPTER 4. QUIZ 3: MATRICES

4.3 Matrix Rank and Inverse (useful topic, ques-

tions 6 - 12)
Quiz 3 Question 6 Click the matrices that have an inverse

1. A
2. B
3. C
4. D
5. E

Quiz 3 Question 7  
1 1
F =
3 4
Click the correct statements

1. F has no inverse.
 
4 1
2. The inverse of F is .
3 1
 
4 −1
3. The inverse of F is .
−3 1

Quiz 3 Question 8  
4 6
G=
−2 −3
Click the correct statements

1. G has no inverse.
 
−3 6
2. The inverse of G is .
−2 4
 
−3 −6
3. The inverse of G is .
2 4

Quiz 3 Question 9 A is an n × m matrix. Is it possible that rankA > m?

1. yes
2. no
3. don’t know.
4.4. DETERMINANTS (USEFUL TOPIC QUESTIONS 13 AND 14) 21

Quiz 3 Question 10 Are there any matrices whose row rank is less than their
column rank?
1. yes
2. no
3. don’t know.

Quiz 3 Question 11 You are told that A is an n × n matrix and that for all
b in Rn the equation Ax = b has a unique solution. What does this tell you
about the rank of A?
1. nothing
2. rank A < n
3. rank A = n
4. rank A > n

Quiz 3 Question 12 A is an n × n matrix. You are told that there is an n

vector x0 = 0 such that Ax0 = 0. What does this tell you about the rank of
A?
1. nothing
2. rank A < n
3. rank A = n
4. rank A > n

4.4 Determinants (useful topic questions 13 and

14)
Consider again the matrices A, B, C, D, E, F and G listed at the start of this
quiz.

Quiz 3 Question 13 Click the correct statements

1. A has a determinant.
2. B has a determinant.
3. C has a determinant.
4. D has a determinant.
5. E has a determinant.
6. F has a determinant.
7. G has a determinant.
22 CHAPTER 4. QUIZ 3: MATRICES

Quiz 3 Question 14 Click the correct statements.

1. det A = 3
2. det B = −1
3. det C = 4
4. det D = 1
5. det E = 0
6. det F = 0
7. det G = 1

4.5 Eigenvalues and Eigenvectors (more challeng-

ing topic questions 15 - 20)
Quiz 3 Question 15 Click the eigenvalues of the matrix

 
2 7
.
1 −4

1. −5
2. −3
3. −2
4. 2
5. 3

Quiz 3 Question 16 Click the eigenvectors of the matrix

 
2 7
.
1 −4
 
1
1.
1
 
−1
2.
1
 
2
3.
−2
 
7
4.
1
 
1
5.
7
4.5. EIGENVALUES AND EIGENVECTORS (MORE CHALLENGING TOPIC QUESTIONS 15 - 20)23

Quiz 3 Question 17 Click the eigenvalues of the matrix

 
2 0 0
 1 2 7 .
4 1 −4
1. −5
2. −3
3. −2
4. 2
5. 3

Quiz 3 Question 18 Click the eigenvectors of the matrix

 
2 0 0
 1 2 7 .
4 1 −4
 
0
1.  7 
1
 
1
2.  7 
1
 
0
3.  −3 
3
 
7
4.  −34 
−1
 
7
5.  −34 
1

Quiz 3 Question 19 Click the correct statements. Assume throughout that

all the components of the n × n matrix A are all real numbers.

1. The eigenvalues of A cannot be complex numbers.

2. The eigenvectors are corresponding to different eigenvalues of A are or-
thogonal.
3. There are some matrices A whose components are all real numbers that
cannot be diagonalized.
4. A can be diagonalized if the characteristic polynomial has n different
roots.
24 CHAPTER 4. QUIZ 3: MATRICES

Quiz 3 Question 20 Click the correct statements. Assume throughout that

all the components of the n × n symmetric matrix A are all real numbers.

1. The eigenvalues of A cannot be complex numbers.

2. The eigenvectors corresponding to different eigenvalues of A are orthogo-
nal.
3. There are some symmetric matrices A whose components are all real
numbers that cannot be diagonalized.
4. A can be diagonalized if the characteristic polynomial has n different
roots.
Chapter 5

Multivariate Calculus

5.1 Topics Covered

This quiz covers topics from chapters 6 (Introduction to multivariate calculus)
and 7 (Working with multivariate calculus).

• Partial Derivatives (essential topic, questions 1 - 3)

• Homogeneous Functions (useful topic, questions 4-7)

• The Chain Rule in Consumer Theory (essential topic, but one some people
find hard, questions 8-11)

• Second Derivatives (useful topic, question 12)

• The Implicit Function Theorem (more challenging topic, question 13)

5.2 Partial derivatives (essential topic, questions

1-3)

Quiz 4 question 1 Use notation p′ ω = ni=1 pi ω i . The object of the question
∂ (p′ ω)
is to find . Write down an answer before going any further. Then
∂pi
consider the case where n = 3 so

p′ ω = p1 ω1 + p2 ω 2 + p3 ω 3

∂ (p′ ω) ∂ (p′ ω) ∂ (p′ ω) ∂ (p′ ω)

and write down , , and a general expression for .
∂p1 ∂p2 ∂p3 ∂pi
Now answer the question.
∂ (p′ ω)
What is ?
∂pi
n
1. i=1 pi

25
26 CHAPTER 5. MULTIVARIATE CALCULUS

n
2. i=1 ω i
n
3. i=1 pi ω i

4. pi
5. ω i

Quiz 4 question 2 Suppose that

 
f (z1 , z2 ) = exp (z1 + z2 )2

and g (x1 , x2 ) = f (z1 , z2 ) where z1 (x1 , x2 ) = 2x1 + 3x2 and z2 = 4x1 + 5x2 .
∂g (x1 , x2 )
Use the chain rule to find .
∂x1
Which of the following answers are correct?
∂g (x1 , x2 )  
1. = 12 (6x1 + 8x2 ) exp (6x1 + 8x2 )2
∂x1
∂g (x1 , x2 )  
2. = (6x1 + 8x2 ) exp (6x1 + 8x2 )2
∂x1
∂g (x1 , x2 )
3. = exp (2 (6x1 + 8x2 ))
∂x1
∂g (x1 , x2 )  
4. = 2 (x1 + x2 ) exp (x1 + x2 )2
∂x1
∂g (x1 , x2 )  
5. = (x1 + x2 ) exp (x1 + x2 )2
∂x1

Quiz 4 question 3 A simple model of a firm has the firm using inputs K
and L to produce output q = K 1/4 L1/4 . The firm cannot affect the price p at
which it sells its output, or the prices v and w which it pays for its inputs. The
firm chooses K and L to maximize its profits
R (p, w, v, L, K) = pK 1/4 L1/4 − vK − wL.
The first order conditions for profit maximization are
∂R (p, w, v, L, K) 1
= pK −3/4 L1/4 − v = 0 (5.1)
∂K 4
∂R (p, w, v, L, K) 1
= pK 1/4 L−3/4 − w = 0. (5.2)
∂L 4
In this case the first order conditions are sufficient for a maximum. (You will
learn maths for microeconomics that this is because pK 1/4 L1/4 − vK − wL is a
concave function of K and L.) The first order conditions imply that
p2 −3/2 −1/2
K = v w
16
p2 −1/2 −3/2
L = v w .
16
5.3. HOMOGENEOUS FUNCTIONS (ESSENTIAL TOPIC, QUESTIONS 4-7)27

2
The profit function π (p, v, w) is defined as R (p, w, v, L, K) when K = p16 v−3/2 w−1/2
2 ∂π (p, v, w)
and L = p16 v−1/2 w−3/2 . Use the chain rule to find .
∂w
Hint: you will find that this question is very much easier if you remember and
p2
use equations 5.1 and 5.2. You do not need to differentiate K = v −3/2 w−1/2
16
p2 −1/2 −3/2
and L = v w to answer this question.
16
∂π (p, v, w)
What is ?
∂w

1. K

2. −K

3. K 2

4. L

5. −L

6. L2

5.3 Homogeneous Functions (essential topic, ques-

tions 4-7)
This is an important topic, which should not be difficult. It is very important
that you read the relevant section of the chapter on working with multivariate
calculus on homogeneous functions carefully.

Quiz 4 question 4 Think about the Cobb-Douglas production function f (x1 , x2 ) =

Axa1 xb2 where y = f (x1 , x2 ) is output, x1 and x2 are inputs which have to be
nonnegative, and a and b are positive numbers. For what values of a and b is
f (x1 , x2 ) homogenous of degree 1 in x1 and x2 ?

1. all positive a and b.

2. positive a and b with a + b < 1.

3. positive a and b with a + b = 1.

4. positive a and b with a +b > 1.

5. no positive values of a and b.

28 CHAPTER 5. MULTIVARIATE CALCULUS

Quiz 4 question 5 The cost function associated with the Cobb-Douglas pro-
duction function f (x1 , x2 ) = Axa1 xb2 is

−1
 a  a+b
b  a  a+b
−a
a b 1
c (w1 , w1 , y) = A a+b + w1a+b w2a+b y a+b .
b b
For what values of a and b is c (w1 , w1 , y) homogeneous of degree 1 in output y?

1. all positive a and b.

2. positive a and b with a + b < 1.

3. positive a and b with a + b = 1.

4. positive a and b with a +b > 1.

5. no positive values of a and b.

Quiz 4 question 6 The cost function associated with the Cobb-Douglas pro-
duction function f (x1 , x2 ) = Axa1 xb2 is

−1
 a  a+b
b  a  a+b
−a
a b 1
c (w1 , w1 , y) = A a+b + w1a+b w2a+b y a+b .
b b
For what values of a and b is c (w1 , w1 , y) homogeneous of degree 1 in input
prices w1 and w2 ?

1. all positive a and b.

2. positive a and b with a + b < 1.

3. positive a and b with a + b = 1.

4. positive a and b with a +b > 1.

5. no positive values of a and b.

Quiz 4 question 7 Suppose that L (p, v, w) and K (p, v, w) maximize

pf (K, L) − vK − wL

and

π (p, v, w) = pf (K (p, v, w) , L (p, v, w)) − vK (p, v, w) − wL (p, v, w) .

Which of the following statements are true?

Hint: you need not do any algebra or calculus to answer this question. You
may find it helpful to think about what changes when (p, v, w) are multiplied
by 2.
5.4. THE CHAIN RULE IN CONSUMER THEORY (ESSENTIAL TOPIC QUESTIONS 8 -11)29

1. None of L (p, v, w), K (p, v, w) and π (p, v, w) are homogeneous.

2. All of L (p, v, w), K (p, v, w) and π (p, v, w) are homogeneous of degree 0.

3. All of L (p, v, w), K (p, v, w) and π (p, v, w) are homogeneous of degree 1.

4. All of L (p, v, w), K (p, v, w) and π (p, v, w) are homogeneous of degree 2.

5. L (p, v, w) are K (p, v, w) are both homogeneous of degree 0 and π (p, v, w)

is homogeneous of degree 1.

6. L (p, v, w) are K (p, v, w) are both homogeneous of degree 1 and π (p, v, w)

is homogeneous of degree 0.

5.4 The Chain Rule in Consumer Theory (es-

sential topic questions 8 -11)
These questions are also on the chain rule; the functions chosen all come from
consumer theory. You will find Microeconomics much easier if you have very
good knowledge of this material. The notation and functions that are used
extensively in consumer theory are:

• p = (p1 , p2 , ...pn ) prices.

• m the amount of money the consumer has to spend.

• u the consumer’s utility.

The functions are

• xi (p,m) (i = 1, 2....n) uncompensated or Marshallian demand.

• hi (p,u) (i = 1, 2....n) compensated or Hicksian demand.

• e (p,u) the expenditure function.

The economics underlying this is discussed in H.R. Varian, Microeconomic

Analysis, chapter 7. These notes use the same notation as Varian. The
economics implies that there are relationships between these functions and re-
lationships. These questions explore the mathematical consequences of those
relationships. You do not need the economics to do these questions. But you
may find it helpful to look back at the mathematics when you come to do the
economics.
30 CHAPTER 5. MULTIVARIATE CALCULUS

Quiz 4 question 8 The uncompensated demand function xi (p,m) and the

compensated demand function hi (p,u) are related by the identity that for all k

hk (p,u) = xk (p,m) when m = e (p, u) .

∂hi (p,u)
Use the chain rule to find an expression for in terms of the partial
∂pj
derivatives of xi (p,m) and m = e (p, u) .

Which of the following expressions is correct?

∂hi (p,u) ∂xi (p,m)

1. =
∂pj ∂pj
∂hi (p,u) ∂xi (p,m)
2. =−
∂pj ∂pj
∂hi (p,u) ∂xi (p,m) ∂xi (p,m)
3. = +
∂pj ∂pj ∂m
∂hi (p,u) ∂xi (p,m) ∂xi (p,m)
4. = −
∂pj ∂pj ∂m
∂hi (p,u) ∂xi (p,m) ∂xi (p,m) ∂e (p, u)
5. = +
∂pj ∂pj ∂m ∂pj
∂hi (p,u) ∂xi (p,m) ∂xi (p,m) ∂e (p, u)
6. = −
∂pj ∂pj ∂m ∂pj

Quiz 4 question 9 You will learn that

∂e (p, u)
= hj (p,u) .
∂pj

∂xi (p,m)
Use this fact, together with your last answer to get an expression for
∂pj
∂hi (p,u)
in terms of , and other terms.
∂pj

Which of the following equations is correct?

∂xi (p,m) ∂hi (p,u) ∂xi (p,m)

1. = + hj (p,u)
∂pj ∂pj ∂m
∂xi (p,m) ∂hi (p,u) ∂xi (p,m)
2. = + xj (p,m)
∂pj ∂pj ∂m
∂xi (p,m) ∂hi (p,u) ∂xi (p,m)
3. = − hj (p,u)
∂pj ∂pj ∂m
∂xi (p,m) ∂hi (p,u) ∂xi (p,m)
4. = − xj (p,m)
∂pj ∂pj ∂m
5.4. THE CHAIN RULE IN CONSUMER THEORY (ESSENTIAL TOPIC QUESTIONS 8 -11)31

∂xi (p,m) ∂hi (p,u) ∂xi (p,m)

5. = + 2hj (p,u)
∂pj ∂pj ∂m
∂xi (p,m) ∂hi (p,u) ∂xi (p,m)
6. = + 2xj (p,m)
∂pj ∂pj ∂m

Quiz 4 question 10 This is a question that you will be able to answer in-
stantly or not at all. The relationship that you derived for question 9 is named
after an economist. Which one?

1. Walras
2. Pareto
3. Slutsky
4. Edgeworth
5. Marshall
6. Hicks

Quiz 4 question 11 In general equilibrium theory the consumer has an en-

dowment ω = (ω 1 , ω2 , ...ωn ) of the n goods rather than a fixed amount of money
m to spend. The consumer’s demand for good i as a function of prices p and
endowment ω is
ki (p, ω) = xi (p,m) when m = p′ ω.

Remember p′ ω is vector notation for nl=1 pl ω l . Use your answer to question
∂ki (p, ω)
8 and the chain rule to find an expressions for in terms of the partial
∂pj
derivatives of xi (p,m) and hi (p,u) .

Which of the following expressions are correct?

∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)

1. = − (ω j − xj (p,m))
∂pj ∂pj ∂m
∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)
2. = + (ω j − xj (p,m))
∂pj ∂pj ∂m
∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)
3. = − xj (p,m)
∂pj ∂pj ∂m
∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)
4. = + xj (p,m)
∂pj ∂pj ∂m
∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)
5. = + ωj
∂pj ∂pj ∂m
∂ki (p, ω) ∂hi (p,u) ∂xi (p,m)
6. = − ωj
∂pj ∂pj ∂m
7. don’t known
32 CHAPTER 5. MULTIVARIATE CALCULUS

5.5 Second derivatives (useful topic, question 12)

Quiz 4 question 12 If
1/4 3/4
c (w1 , w1 , y) = w1 w2 y

find the Hessian matrix

 2 
∂ c (w1 , w1 , y) ∂ 2 c (w1 , w1 , y)
 2 
 2 ∂w1 ∂w1 ∂w2 .
 ∂ c (w1 , w1 , y) ∂ 2 c (w1 , w1 , y) 
∂w2 ∂w1 ∂w22
 
−5/4 1/4 −1/4 −3/4
− 34 w1 w2 y 34 w1 w2 y
1. 3 −1/4 −3/4 1/4 −5/4
4 w1 w2 y − 34 w1 w2 y
 
3 −5/4 1/4 −1/4 −3/4
4 w1 w2 y − 34 w1 w2 y
2. −1/4 −3/4 3 1/4 −5/4
− 34 w1 w2 y 4 w1 w2 y
 
−5/4 1/4 −1/4 −3/4
− 34 w1 w2 y 34 w1 w2 y
3. 3 −3/4 −1/4 1/4 −5/4
4 w1 w2 y − 34 w1 w2 y
 
3 −7/4 3/4 3 −3/4 −1/4
− 16 w1 w2 y 16 w1 w2 y
4. 3 −3/4 −1/4 3 1/4 −5/4
16 w1 w2 y − 16 w1 w2 y

5.6 The Implicit Function Theorem (more chal-

lenging topic, but you need to know the re-
sult of question 13)
Quiz 4 question 13
The CES (constant elasticity of substitution) production function is
1/ρ
f (x1 , x2 ) = [a1 xρ1 + a2 xρ2 ] .

The isoquant graph shows x2 as a function of x1 and q defined implicitly by

1/ρ
[a1 xρ1 + a2 xρ2 ] = q.

The slope of the isoquant is called by Varian technical rate of substitution

(TRS).

What is the TRS?

1−ρ
(ρ−1)
a2 x2 [a1 xρ1 + a2 xρ2 ] ρ
1. − 1−ρ
(ρ−1)
a1 x1 [a1 xρ1 + a2 xρ2 ] ρ

1−ρ
(ρ−1)
a2 x2 [a1 xρ1 + a2 xρ2 ] ρ
2. 1−ρ
(ρ−1)
a1 x1 [a1 xρ1 + a2 xρ2 ] ρ
5.7. TAYLOR APPROXIMATIONS FOR FUNCTIONS OF SEVERAL VARIABLES (MORE CHALLENGING T

1−ρ
(ρ−1)
a1 x1 [a1 xρ1 + a2 xρ2 ] ρ
3. − 1−ρ
(ρ−1)
a2 x2 [a1 xρ1 + a2 xρ2 ] ρ

1−ρ
(ρ−1)
a1 x1 [a1 xρ1 + a2 xρ2 ] ρ
4. 1−ρ
(ρ−1)
a2 x2 [a1 xρ1 + a2 xρ2 ] ρ

(ρ−1)
a1 x1
5. (ρ−1)
a2 x2
(ρ−1)
a1 x1
6. − (ρ−1)
a2 x2

5.7 Taylor Approximations for Functions of Sev-

eral Variables (more challenging topic, ques-
tion 14)

Quiz 4 Question 14 Consider the Cobb-Douglas utility function

3/4 1/4
f (x1 , x2 ) = x1 x2 .

Which of the following expressions is the quadratic approximation of f (x1 , x2 )

when (x1 , x2 ) is close to (1, 1)?

     
3 1 x1 − 1 3 −1 1 x1 − 1
a = 1+ , + (x1 − 1, x2 − 1)
4 4 x2 − 1 16 1 −1 x2 − 1
     
3 1 x1 − 1 3 −1 1 x1 − 1
b = 1+ , + (x1 − 1, x2 − 1)
4 4 x2 − 1 32 1 −1 x2 − 1
     
3 1 x1 − 1 3 1 1 x1 − 1
c = 1+ , + (x1 − 1, x2 − 1)
4 4 x2 − 1 32 1 1 x2 − 1
  
3 −1 1 x1 − 1
d = 1+ (x1 − 1, x2 − 1)
16 1 −1 x2 − 1
  
3 1 x1 − 1
e = 1+ ,
4 4 x2 − 1

1. a
2. b
3. c
4. d
5. e
34 CHAPTER 5. MULTIVARIATE CALCULUS
Chapter 6

Quiz 5: Introduction to
Topology

6.1 Topics Covered

This quiz and chapter 8 of the notes on open and closed sets are more challenging
and are intended for MRes students and for students who wish to take EC487
(Advanced Microeconomics). Do not attempt this quiz unless you are very
confident that you have a good grasp of the rest of EC400 maths and want a
challenge.
This quiz covers the beginnings of real analysis in Rn and starts the move to
topology. This is relatively abstract material. If you have done a course in real
analysis this may be useful revision of the basics and might help to build your
intuition. The concepts here are required for rigorous proofs of some important
results in microeconomics.

6.2 Boundaries, Open and Closed Set (useful

topic, questions 1-3)
Quiz 5 question 1 In Figure 6.1 the black lines at the edge of the sets are
the parts of the boundary of the set that lies within the sets. The notation
S C means the complement of the set S. Which of the sets are open?

1. S

2. S C

3. T

4. T C

5. U

6. U C

35
36 CHAPTER 6. QUIZ 5: INTRODUCTION TO TOPOLOGY

x2

S
T

0 x1

Figure 6.1: question 1

Quiz 5 question 2 Look again at the sets in Figure 6.1 Which of the
following sets are closed?

1. S

2. S C

3. T

4. T C

5. U

6. U C

Quiz 5 question 3 Consider an infinite collect of open sets A1 , A2 ....... Click

the correct statements.

1. The union of a finite number of these sets must be open.

2. The union of a finite or infinite number of these sets must be open.

3. The intersection of a finite number of these sets must be open.

4. The intersection of a finite or infinite number of these sets must be open.

6.3. CLOSED SETS, BOUNDED SETS, COMPACT SETS AND CONTINUOUS FUNCTIONS (MORE CHALLE

6.3 Closed Sets, Bounded Sets, Compact Sets

and Continuous Functions (more challeng-
ing topic, questions 4-7)
Quiz 5 question 4 Which of the following intervals are closed? Can you
explain your answer using the definition of a closed set as one whose complement
is open, and the definition of an open set in terms of open balls?
1. (10, 11)
2. (12, ∞)
3. [10, 11)
4. [12, ∞)
5. [10, 11]

Quiz 5 question 5 Which of the following intervals are bounded?

1. (10, 11)
2. (12, ∞)
3. [10, 11)
4. [12, ∞)
5. [10, 11]

Quiz 5 question 6 Which of the following intervals are compact?

1. (10, 11)
2. (12, ∞)
3. [10, 11)
4. [12, ∞)
5. [10, 11]

Quiz 5 question 7 On which of the following intervals does the function

f (x) = x2 have a minimum?
1. (10, 11)
2. (12, ∞)
3. [10, 11)
4. [12, ∞)
5. [10, 11]
38 CHAPTER 6. QUIZ 5: INTRODUCTION TO TOPOLOGY

6.4 Continuity for Consumer Theory (more chal-

lenging topic, question 8)

Quiz 5 question 8 Which of the following conditions on the function f :

Rn → R ensure that the function f is continuous?

1. For all y the sets {x : x ∈ Rn , f (x) < y} and {x : x ∈ Rn , f (x) > y} are
open.
2. For all y the sets {x : x ∈ Rn , f (x) ≤ y} and {x : x ∈ Rn , f (x) ≥ y} are
open.
3. For all y the sets {x : x ∈ Rn , f (x) < y} and {x : x ∈ Rn , f (x) > y} are
closed.
4. For all y the sets {x : x ∈ Rn , f (x) ≤ y} and {x : x ∈ Rn , f (x) ≥ y} are
closed.