Mathematical Methods for Economics

Paper Code:

24CECO 401

Credits:

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

Course Outcomes:

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24CECO 401

Mathematical Methods for Economics

(Theory)

Students will:

CO19: analyze basic concepts of mathematical economics.

CO20: differentiate between various types of functions, construct curves, solve and apply linear equations and solve simultaneous and quadratic equations.

CO21: solve simple differentiation problems

CO22: apply differentiation in economics.

CO23: apply the operations of matrices and determinants for economic analysis.

CO24: contribute effectively in course-specific interaction.

Approach in teaching: Interactive Lectures and Discussions.

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

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
Concavity and convexity
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:

Dowling, E.T,Schaum’s Outlines, Mathematical Methods for Business And Economics, McGraw Hill, 2019.
Mehta, B.C., and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, 2008.

References:

Suggested Reading:

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

E Resource: