Mathematical Methods for Economics-I

Paper Code: 
ECO 112
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are -

 

  1. To develop an understanding of preliminary concepts of mathematics. 
  2. To help the students to understand the concepts of functions, matrices and determinants.
  3. To acquaint the students with the technique of differentiation and its applications in economics.

 

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 112

Mathematical Methods for Economics-I

CO5: Acquire knowledge of different mathematical techniques.

CO6: Apply the techniques of functions, differential calculus, matrices and determinants for economic analysis and optimizing functions.

 

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

12.00
Unit I: 
Preliminaries

Basics of a Mathematical Model-variables, constants & parameters, equations & identities; Real-Number System; Sets and sets operations; Indices; Surds; Logarithms; Arithmetic, Geometric and Harmonic Progression; Permutations and combinations; Binomial expansion.

 

12.00
Unit II: 
Functions and Equations

Relations and Functions; Types of Functions- Constant, linear, quadratic, cubic, power, exponential and logarithmic functions;

Linear Equations and Graphs- slopes, intercepts, the slope-intercept form; determining the equation of a straight-line; Systems of equations-Solution by Elimination and Substitution methods, Graphical Solution, Equilibrium Analysis in Economics.

Quadratic equations- solution and applications.

 

12.00
Unit III: 
Matrices and Determinants

Matrix and matrix operations; determinants: solution and properties; systems of linear equations and their solution.

 

12.00
Unit IV: 
Single-Variable Differentiation I

Nature of Comparative Statics; Rate of change and the derivative; Derivatives and the slope of a curve; Concept of Limit; Limit Theorems; Continuity and Differentiability of a Function.

Rules of differentiation; Higher order derivatives.

 

12.00
Unit V: 
Single-Variable Differentiation II

Increasing and decreasing functions; Concavity and convexity; Inflection points; Marginal concepts; Optimization- local and global optima using calculus; and its applications.

 

Essential Readings: 
  1. Chiang, A. C. & Kevin Wainwright, Fundamental Methods of Mathematical Economics (Fourth Edition), McGraw Hill, 2013.
  2. Dowling, E. T., Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill, .
  3. K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.

 

Academic Session: 
2020-21
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