Course Title: Introductory Mathematical Economics L T P/S SW/F TOTAL

Credit Units: 3 W CREDIT

Course Level: P.G UNITS
3 - - - 3
Course Code: ECON 603
Course Objectives: The main objective of this course is to familiarize the students with the basic quantitative and algebraic tools and techniques which will be
needed for the understanding of the course subject and the students can apply the quantitative techniques in the analysis of the managerial problems.

Pre-requisites: NIL

Course Contents/Syllabus:
Weightage (%)
Module I Elementary Linear Algebra (1)
10
2-3-, and n – dimensional row and column vectors: vector addition and scalar multiplication: length of a vector, scalar
products, orthogonality. Geometric representation, lines and planes in R 2 and R3.Linear and convex combination of
vectors. Linear independence. Convex sets
Module II Elementary Linear Algebra (2)
Matrices and matrix operations, addition, scalar multiplication, matrix multiplication.The transpose.The inverse of a 25
square matrix. Rank.Elementary row operations and computation of rank. Invertibility and rank for square matrices.
Matrix methods of solution (Cramer’s rule).. Determinants: definition, properties, minors and cofactors, the Laplace
expansion, expansions by alien cofactors; singularity and invetibility; the adjoint matrix and formula for the inverse
Module III Applications of Calculus
The limit of f(x) as x --> a. Continuity. The intermediate – value theorem 35
Differentiation and integration of functions of single variable. Maxima and minima functions (with and without –
constraints). Simple applications of differential and integral calculus in Economics.
Module IV Functions of several variables
30
Partial differentiation. Higher order partial derivatives. Partial derivatives in economics.
Maxima and minima, unconstrained optimization, necessary and sufficient conditions for local optima.
Constrained optimization (equality constraints). The method of Lagrange Multipliers. Interpretation of the necessary
 conditions of Lagrange multipliers; sufficient conditions. Economic examples.

Student Learning Outcomes:

.
On successful completion of the course, students will be able to:

 Apply the quantitative techniques(mathematical economics) in the analysis of the economic problems
 Explain and use the tools and methods of vector algebra Identify the methods of Matrix and Determinants
 Use the basic concepts and methods of calculus like limit, continuity, differentiation and integration
 Apply the knowledge of differential and integral calculus in the field of economics
 Use the method of Lagrangian Multipliers for optimization

Pedagogy for Course Delivery:

The class will be taught with explaining theory and solving mathematical problems. In addition to assigning the problems, the course instructor will spend
considerable time in explaining the application and interpretation of mathematics in the field of economics.

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term Examination

Components (Drop down) Mid-Term Exam Class Test Assignment Attendance

Weightage (%) 15 5 5 5 70

Text Reading:

 Gupta, S.P.: Statistical Methods, S. Chand and Sons, New Delhi

 Speigal, M.R.: Theory and Problems of Statistics, Mcgraw Hill Book Co., London.
 Mabbett, A.S.: Workout Mathematics for Economics, Macmillan. London.

References:
 Knut Sysdaeter and Peter.J. Hammond (2002) Mathematics for Economics Analysis. Pearson Educational Asia: Delhi (reprint of first 1995 edition)
 Alpha C. Chiang (1984) Fundamental Methods of Mathematical Economics, McGraw Hill (third edition)