ECO607 Final Term Quiz 2025 by Miss Mehwish

Eco607 · Final Term (Live Quiz) · Past Papers for Mids./Finals are also Available

ECO607 - Mathematical Economics II

Q1. Which of the following is the correct option for the dynamic stability of equation; Pt = P0(1+i)t ?

The term(1+i)t will affect the scale of complementary solution The term t will determine the magnitude of scale ✅ The term(1+i)t will determine the dynamic stability of the equation The term P0 will determine the dynamic stability of the equation

Q3. Which of the following is the correct option for the dynamic stability of price equation; When n>0 ? P′′+mnp′+[−β+δn]P=−α+γn

The system will dynamically stable with A1 >0 and A2 = 0 The system will be dynamically undefined The system will dynamically stable with A1 = 0 ✅ The system will dynamically unstable with A1 = 0 and A2 >0

Q5. Which of the following is the correct option for the dynamic stability of equation; Yt = Abt if value of A = -2 ?

The time path is independent from this value The time path will be the original time path The definite solution will be undefined ✅ The time path will be a mirror image of original time path

Q7. Which of the following is the incorrect option for the equation; y’’ + 2y’ +3y = 2t2+3t+2 ?

There is no value for the complementary solution The particular solution will be a constant value

Q8. Which of the following is the correct option for the dynamic stability of Phillips equation; d2π/dt2+βk(dπ/dt)−j(g−1)(dπ/dt)+jβkm=jβkm considering complex roots ?

The system will be dynamically unstable when complex roots are negative ✅ The system will be dynamically stable when complex root (h) is negative The system will be dynamically stable when distinct real roots are negative The system will be dynamically unstable when repeated real roots are negative

Q10. Which of the following is the incorrect option for the terms of price equation (dp/dt+d2p/dt2) ?

It is rate of change in price over time It is market price of goods over time It is slope of rate of change in price over time

Subject Code: ECO607 - Mathematical Economics II

Q2. Which of the following is the incorrect option for the possible cases of Phillips equation dπ/dt = j (p - π)?

j >< 0 j = 0 j > 0 j > 1 ✅

Q4. Which of the following is the correct option for the Phillips equation p= α- βU - T? Unemployment and inflation are inversely related

Inflation will decrease when productivity (T) increases Inflation will increase when unemployment increase

Q6. Which of the following is the correct option for second order differential equation with constant coefficient and variable terms i.e L.H.S is the f(t)?

It will change the particular solution It will change the complementary solution It will change both complementary and particular solution ✅