THE UNIVERSITY OF HONG KONG

DEPARTMENT OF MATHEMATICS

MATH 1009: BASIC MATHEMATICS FOR BUSINESS AND ECONOMICS

May 23, 2016 2:30 - 5:00 pm

Only approved calculators as announced by the Examinations Secretary can be used in this ex-
amination. It is candidates' responsibility to ensure that their calculator operates satisfactorily,
and candidates must record the name and type of the calculator used on the front page of the
examination script.

Answer all FIVE questions. Each question carries 20 marks.

Notes:

• You should give precise and adequate explanations to support your conclusions unless
otherwise specified by the question. Clarity of presentation of your argument counts. So
think carefully before you write.

• You must start each question on a new page. However do NOT start each part of a
question on a new page. You should write down the question number on the top right
hand corner of each page. Indicate clearly which part of a question you are answering.

• If your answer to a question spans over more than one page, you must indicate clearly on
each page (except the last) that the answer will continue on the subsequent page.

• If you do not otherwise specify, you are assumed to be answering the questions in order.
In particular, indicate on each question where your answer to the next question is if it
does not follow immediately. (For example you may write 'turn back 3 pages for Question
5' at the end of Question 4.)

• Whenever there is a blank page it will be assumed that all subsequent pages are also
blank If this is not true, indicate clearly on the page which you would otherwise leave
blank

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1. In each multiple choice question below, some numbered choices are given and some are
correct (wordings like is and are do not indicate the singularity/plurality of the number
of correct choices). Answer the question by adding up the numbers of the correct choices.
In case all choices are wrong, answer 0. Explanation is not required.

In addition to putting the answers inside the answer book, remember to copy the answers
onto the front cover of the answer book in the format prescribed.

(a) Which of the following is the negation of 'a = b and c > d'?
(1) a f b or c :S d
(2) afbandc:Sd
(4) a=bandc:Sd
(8) If a = b then c :S d.

(b) If P is a necessary condition for Q, then Q must be

(1) stronger than P

(2) a necessary condition for P
(4) a sufficient condition for P
(8) logically equivalent to P

(c) If we are given the graph of the function y = x 2 - 4x - 1, which of the following
equations can be solved by adding a suitable straight line onto the graph?

(1) x 2 -4x-2=0

(2) x 2 - 5x -1=0

(4) 2x 2 -4x-1=0

(8) -x 2 -4x -1=0

(d) Which of the following series is convergent?

(1) 2016 + 2006 + 1996 + ...

(2) 8 + 4 + 2 + 1 + ...

(4) 1 - 0.8 + 0.8 2 - 0.8 3 + ...

(8) 1 + i.05- 1 +i.05- 2 +1.05-.3 + ...

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(e) Which of the following functions has the same derivative as 4x5 + 6x 7 + 8x 9 ?
(1) 4x 5 + 6x 7 + 8x 10
(2) 4x 5 + 6x 7 + 7x 9

(4) 3 + 4x 5 + 6x 7 + 8x 9
(8) 3( 4x 5 + 6x 7 + 8x 9 )

(f) Which of the following is correct?

d 1
(l) dx (.Ji) = 2.Ji

(2) ~(ffx) = ~
dx v2x
d 2
(4) dx (2.Ji) = ft

(8) ~ ( f!_) = 2
dx y-; ft
(g) Which of the following is possible for a function f(x)?

(1) f'(l) = 0 and f"(l) = 0

(2) f'(l) = 0 and J"(l) > 0
(4) f'(l) > 0 and J"(l) > 0

(8) f'(l) > 0 and f"(l) < 0

(h) Consider the function J(x) = 1 - 3(x - 2) 4 . Which of the following is true for the
point (2, 1)?

(1) It is a stationary point.

(2) It is a local minimum.

(4) It is a local maximum.
(8) It is a point of inflexion.

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 (i) Consider the equation Y = C +I+ G + X - M from the Keynesian macroeconomic
model. Which of the following must be equal to 1?
8Y
(1) . 8!
8Y
(2) 8G
(4) The marginal propensity to consume

(8) The marginal propensity to import

(j) Which of the following is correct?

(1) j dx = x+C

(2) j dx
x
= -~2 + C
x

(4) J dx2 =
x
-~ + C
x

(8) j lnx = ~+C

2. Give answers only to the following questions. Explanation is not required.

2
(a) What is the domain of the function J(x) = . ?
x2 -4x
(b) What is the range of the function f(x) = eVx?
(c) What is the inverse of the function y = 2x - 4?

(d) In a market with 10 buyers, each individual buyer has the same demand schedule
p-'-- 60 - 2q. What is the market demand schedule?

(e) If f(x) = 4x 2 + 3x + 2, what is f'(-1)?

(f) If f(x, y) = VSXY, what is : ; ?

(g) Consider the utility function U(A, B) = lOAB - AB 2 • What is the marginal utility

of B when A= B = 10?

(h) A firm has marginal revenue MR= 10 - q. What is its total revenue schedule?

(i) What is j: 3
dx?
3
(j) What is
1 1
3+x
- - dx?
x

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3. (a) Let f(x) = -2x 2 -6x+l. Find the maximum and minimum values (if any) of f(x)
using two different methods:

(i) The method of completing square

(ii) The method of differentiation

(b) Let g(x,y) = 5x 2

+4y 2 +4xy~ 12x-8y+2016. Find the maximum and minimum
values (if any) of g(x, y) using two different methods:

(i) The method of completing square

(ii) The method of differentiation

(c) Let h(x, y) = 6.jX + 4JY - 3x - 6y + 2, where x, y 2". 0.

(i) Find the maximum and minimum values (if any) of h(x, y).
(ii) Find the maximum and minimum values (if any) of h(x, y) subject to the
condition x + 2y = 22.

4. A profit-maximising monopolist operates two plants with marginal cost (MC) functions

MC 1 = 20 + 4q, and MC2 = 50 + 2q2

respectively. It has a fixed cost of $10 and faces a market demand function given by

p= 70- 4y'q.

(a) Find the marginal revenue (MR) function.

(b) What price will the monopolist set and what will be the output from each plant?

(c) Find the consumer surplus.

(d) What is the profit of the monopolist?

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5. In 2010, John planned to buy a flat worth $1,000,000 at the beginning of 2016. Expecting
to borrow 90% from the bank, he would need to make a down payment of $100,000. To
achieve this goal, he joined an investment project at the beginning of 2011, in which he
was required to pay a fixed annual amount at the beginning of each year from 2011 to
2015 (inclusive), and could get back $100,000 at the end of 2015. The internal rate of
return (IRR) of the project was set at 8%. Then John immediately used the $100,000
return from the project as down payment of the flat as planned. The rest was borrowed
from the bank with monthly repayment for 15 years, at a monthly interest rate of 1%.;ier
* Gfii.

(a) For the investment project, find

(i) the amount John had to pay each year;

(ii) the rate of change of the annual payment with respect to a potential change to
the current IRR.

(b) For the loan, find

(i) the amount of monthly repayment;

(ii) the equivalent annualised percentage rate (APR).

(c) (i) What interest rate, if charged continuously, will be equivalent to the 1% monthly
interest rate?

(ii) At the rate in (i), how long will it take for a sum of money to double?

*******END OF PAPER*******

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 THE UNIVERSITY OF HONG KONG

DEPARTMENT OF MATHEMATICS

MATHlOll: University Mathematics I

May 12, 2016 TIME: 9:30a.m.-12:00p.m.

Only approved calculators as announced by the Examinations Secretary can be used

in this examination. It is candidates' responsibility to ensure that their calcula-
tor operates satisfactorily, and candidates must record the name and type of the
calculator used on the front page of the examination script.

Ans"¢'er ALL SEVEN questions.

Notes:

• You should always give precise and adequate explanations to support your
conclusions. Clarity of presentation of your argument counts. So think care-
fully before you write.

• You must start each question on a new page. However do NOT start each
part of a question on a new page. You should write down the question number
on the top right hand corner of each page. Indicate clearly which part of a
question you are answering.

• If your answer to a question spans over more than one page, you must indicate
clearly on each page (except the last) that the answer will continue on the
subsequent page.

• If you do not otherwise specify, you are assumed to be answering the questions
in order. In particular, indicate on each question where your answer to the
next question is if it does not follow immediately. (For example you may write
'turn back 3 pages for Question 5' at the end of Question 4.)

• Whenever there is a blank page it will be assumed that all subsequent pages
are also blank. If this is not true, indicate clearly on the page which you
would otherwise leave blank.

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