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Mathematical Methods for Economics
Paper Code:
CECO 401
Credits:
6
Contact Hours:
90.00
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.
18.00
Unit I:
Preliminaries I
· Indices & Surds
· Logarithms
· Arithmetic, Geometric and Harmonic Progression
· Permutations and combinations
· Binomial expansion
18.00
Unit II:
Preliminaries II
- Functions & Curves
- Type of functions – explicit & implicit, linear, quadratic, cubic & log linear
- Linear Equations – slopes, intercepts & slope-intercept form
- Solving the Quadratic Equations
- Solving the system of Equations -Elimination and Substitution methods (Up to 2 variables)
18.00
Unit III:
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.
18.00
Unit IV:
Differential Calculus II
- Relationship between Total, Marginal & Average functions;
- Increasing and Decreasing functions;
- Maxima, minima and point of inflection
- Applications of simple differential calculus in economics
18.00
Unit V:
Matrices & Determinants
- Matrices- Types & Operations
- Determinants(up to third order matrix);
- Properties of Determinants
- Minors and cofactors; Inverse of a Matrix
- Solving of simultaneous equations by Cramer’s rule & Matrix inverse method
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:
