Mathematical Methods

Paper Code: 
ECO 302
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

1. To orient the students with the mathematical tools useful in economic analysis.

2. To appraise the students with the basics of Matrix Algebra.

3. To acquaint the students with the knowledge of optimization of economic functions.

9.00
Unit I: 
Basic Concepts
  • Exponents;
  • Linear Equations – slopes, intercepts & slope-intercept form; 
  • Solving the Equations- Linear and Quadratic ;
  • Solving the system of Equations -Elimination and Substitution methods (Up to 2 variables).
9.00
Unit II: 
Differential Calculus I
  • Simple Differentiation involving – constant function rule, power function rule, rule of sum and differences, product rule, quotient rule, chain rule;
  • Higher Order Derivatives.
9.00
Unit III: 
Differential Calculus II
  • Relationship between Total, Marginal & Average functions;
  • Increasing and Decreasing functions; 
  • Optimizing economic functions.
9.00
Unit IV: 
Matrix Algebra I
  • Types of Matrices;
  • Operations on Matrices;
  • Determinants(up to third order matrix);
  • Properties of Determinants;
9.00
Unit V: 
Matrix Algebra II
  • Solving linear equations by determinants-Cramer’s rule.
  • Minors and cofactors;
  • Adjoint and Inverse of Matrix; 
  • Solving linear equations with an inverse matrix.
Essential Readings: 

1. Dowling, E.T,Schaum’s Outlines, Mathematical Methods for Business And Economics, McGraw Hill, 2019.

2. Mehta, B.C., and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, 2008.

References: 

Chiang, A.C., Fundamental Methods of Mathematical Economics, McGraw Hill, 3rd Edition, 2013.

Academic Session: 
2022-23
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