Mathematical Methods-I (Economics)

ABOUT THE COURSE: This course equips students with essential mathematical skills for economic analysis, fostering critical thinking and data analysis. This course is tailored for undergraduates in economics or related fields. It benefits finance and business students by enabling them to analyze financial markets, make informed decisions, and optimize business operations. Acquiring quantitative skills enhances employability and effectiveness in addressing current economic challenges.INTENDED AUDIENCE: BA & B.ComPREREQUISITES: Basic level of Mathematics

Syllabus

Week 1: Set: Types and operations; Venn Diagrams.

Week 2:Cardinality of set. Cartesian products.
Relations and functions; Types of Functions.

Week 3:Inverse of Function; Functions in economics.
Graph: slope and equation of a straight line.

Week 4:Economic applications of graphs.
Rules of Exponents.
Equations & its types: Linear equations, Simultaneous equations with two unknown variables.

Week 5:Simultaneous equations with three unknown variables. Applications of linear equation in economics: Demand and supply analysis, Income determination models.

Week 6:Applications of linear equation in economics: IS-LM model.
Quadratic equations: solution by using factorization quadratic formula and completing squares.
Graph of quadratic equation.

Week 7:Minimum or Maximum Value of Quadratic Function by Completing the Squares.
Arithmetic and geometric progression.
Calculation of simple and compound interest.

Week 8:Time value of Money: Present and future value;
Annuity: Present and future value of annuities.
Matrices: Meaning and types, Transpose of a matrix; Operation of matrices: Addition, subtraction, multiplication.

Week 9:Determinants and its properties.
Singular and Non Singular Matrices; Rank & Trace of matrix.
Minor, cofactor and Inverse of a matrix.
System of linear equations.

Week 10:Crammer’s rule and matrix inversion method.
Eigenvalues and eigenvectors of a matrix.
Input- output model: Basic concepts and structure of Leontief’s open and Closed input-output model.
Solution for equilibrium output in a two and three industries model.

Week 11:Concept of Linear programming, Formulation of Linear programming problem (LPP), Graphical solution to LPP.

Week 12:Concept and formulation of duality.
Simplex method to solve LPP: Maximization of profit and Minimization of cost.