Course Contents

1. Economic model • Ingredients of a mathematical model • The real-number system, • The concept of sets 2. Variables • Variable & Constant • Continuous & Discrete variables • Independent & Dependent variables • Exogenous & Endogenous variables 3. Functions • Definition • Different types of functions • Rectangular coordinates • Relations VS function • Graphical representation of a function • Classification of functions • Some important functions in economics 4. Equations • Introduction • Equations VS Identity • Degree of equation • Types of equations with solutions • Demand and supply equations • Functional equation of supply • Market equilibrium • Equilibrium of national income 5. Static/equilibrium analysis • Equilibrium analysis in economics • The meaning of equilibrium • Partial equilibrium analysis • General market equilibrium • Equilibrium in national income analysis 6. Limits and continuity of function • Concept of limit • Evaluation of limits • Properties of limits Continuity of function 7. Liner model and matrix algebra • Matrices &&vectors • Matrix operations • Vector operations • Commutative, associative & distributive laws • Identity matrices and null matrices • Transpose& inverse • Conditions for Nonsingularity of a matrix • Test of Nonsingularity by use of determinants • Basic properties of determinants • Finding the inverse matrix • Cramer’s rule • Application to market and national income model 8. Derivatives • Concept of derivative • Rules of derivatives • Application of derivatives in economics • Partial derivatives 9 Higher order derivatives • Second and higher order derivatives • Maxima and minima • Point of inflection • Optimization problems • Constrained optimization

Course Learning Outcomes

The intent of this course is to teach the students the language of mathematics and how to use it to better understand economics. The ability to describe an economic model verbally, graphically, and mathematically will make them understand economics in a much better way. The completion of this course will improve their understanding of economic theory, make their other economics courses much easier and improve their basic math skills.