(Pages 1683
P.T.O
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.…………………
Third Semester B.A. Degree Examination, November 2016
First Degree Programme under CBCSS
Core Course: Economics III
AUEC341: Basic Tools for Economics I
for 2014 Admissions Improvement Only
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL the following terms each in one or two sentences.
1. Homogeneous function.
2. Quadratic equation.
3. Limit of a function.
4. Demand curve.
5. Identity matrix.
6. Elasticity.
7. Continuous variable.
8. Marginal cost.
9. Order of a matrix.
10. Differentiate 2 3 . 3 y x x
(10 1 10 Marks)
SECTION B
Write short notes on any EIGHT of the following, not exceeding a paragraph.
11. If A B Find i). A∪B ii). A∩B
12. Find the determinant of the matrix A










7 8 9
4 5 6
2 1 3
.
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13. The supply function is given as Qs 10 2p. Draw the supply curve.
14. Find
dx
dy
if .
2 y ex
15. The total cost function for a firm is C 50 2Q 7Q2 Q3. Find the marginal cost
when Q 5
16. Give an account of consumption function and savings function.
17. What do you mean by the domain of a function
18. Distinguish between symmetric and skew symmetric matrix with examples.
19. Give four applications of differentiation in economics.
20. Evaluate 3x dx 2 .
21. Define market equilibrium.
22. Distinguish between demand function and inverse demand function.
2 16 Marks)
SECTION C
Short essay type Answer any SIX questions, each not to exceed one and a half page.
23. Solve
i). 2 80 0 2 x x
ii). 3x 2y 13
5x 3y 66
24. Find the inverse of the matrix A












3 1 1
1 2 3
0 1 2
25. Integrate
i). 7x . dx 6
ii). 4x . dx 2 3 3
26. The demand function is Q 10 2p. Find the price elasticity when P 4
27. Verify the Euler's theorem to the following function f x y z 3xyz 3 3 3 .
28. Explain the relationship between various shortrun cost curves.
29. i). Define marginal revenue.
ii). Find the marginal revenue if the demand function is p 100 2q.
30. Given that p1 p2 4 and the budget of the consumer is 120, maximize the
utility function U Q1Q2.
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31. i). Distinguish between increasing and decreasing functions;
ii). Check whether the function 3 14 5 2 y x x is increasing or decreasing or
stationary when x 4.
4 24 Marks)
SECTION D
Long essay type Answer any TWO questions, each not exceeding three pages.
32. i). Distinguish between consumers' surplus and producers' surplus.
ii). The demand function is P 25 3x 3x2, where the is the quantity
demanded. What will be the consumers' surplus when quantity demanded is
equal to 2
33. i). Find the matrix of cofactors of A










0 5 6
2 1 4
5 2 1
.
ii). Solve the following set of equations using Cramer's rule.
2 3 9. 1 2 3 x x x
9. 1 2 3 x x x
3 1 1 2 3 x x x .
34. i). Find the marginal products of labour and capital for the production function
Q 20 . . 0.4 0.6 K L
ii). State the conditions for a function y f to be maximum or minimum.
iii). Find the maxima and minima of the function 2 6 . 3 y x x
35. i). Distinguish between linear and exponential functions.
ii). Distinguish between simple interest and compound interest.
iii). What is the difference between investing Rs.5000 at a rate of interest of 10%
per annum at simple rate of interest and compound rate of interest for 3 years
15 30 Marks)