School name -ID-1

SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

Program: B.Sc. Economics Semester : I

Course : Introduction to Course Code:

Mathematical
Economics

Teaching Scheme Evaluation Scheme

Lecture Tutorial Internal Continuous Term End Examinations (TEE)
Practical
(in (in Credit Assessment (ICA) (weightage)
(in hours)
hours) hours) (weightage)
60 30 5 50 marks 50 marks
Pre-requisite: Student should possess basic knowledge of matrix algebra, Calculus and Functions

Objectives:
● To familiarize students with concepts involved in application of Mathematics to Statistics.
● To enable students to analyze economic problems in a Mathematical framework.
● To stress the importance of Mathematical concepts that are useful in Economics.
● To evaluate problems in Economics through applications of Mathematical concepts.

Outcomes:
After completion of the course,
● Understanding the practical applications of subject.
● Developing an analytical thought process.
● Students will be well versed with identifying various mathematical functions and their
applications at course completion.
● Mathematical outcomes will be interpreted well in terms of economics.
● Students will get acquainted with applications of mathematical tools to economy.

Session No. Theme Pedagogy References Weightage

(with
chapter
numbers)
1 Set Theory Classroom Alpha C 8 marks
teaching +
discussion
Chiang,
● Notion of what is a set.
Kevin
● How to write a set
Wainwright
● Venn diagram, union and
Fundamen
intersection of the set,
tal
Universal set and
methods of
complement set
Mathemati
● laws about union and
cal
intersection and compliment.
Economics,
● Prove using properties
Fourth
● Applicative word problems
edition.+
 School name -ID-1
SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

Product set, De Morgan’s Law, Tutorials

Types of relation.
2 Functions of single variable Classroom Mathemati 10 marks
teaching + cs for
● What is a function? Ordered discussion
Economics
pairs,Difference between and
relations and functions Business,
● Functions of single variables, R.S.Bhard
waj+
domain and codomain, graph
Mathemati
of the function, cs for
● Different types of relation Economist
and function s, Carl P
(surjective ,bijective and Simon and
injective) Lawrence
● Sketching Various types of Blume+
tutorials
special functions e.g.
quadratic, polynomial,
Rational, exponential,
logarithmic and
● Formation of functions
(economic problems)

3 Continuity and Limits Classroom Mathemati 6 marks

● Limit of the function, right teaching cs for
and left limit, existence of Economics
the limit and
● Rules of limit. Business,
R.S.Bhard
● Numericals of different
waj
functions on limit.
(excluding trigonometric
functions)
● Continuity over interval and
on functions.
● Applications

4 Calculus of the functions of single Classroom Mathemati 12 marks

teaching + cs for
variable-1. tutorials
Economics
Differentiability and
Business,
● Composite functions and R.S.Bhard
chain rule, Inverse functions waj
and their derivatives,
Alpha C
Exponential functions,
 School name -ID-1
SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

Higher order derivatives. Chiang,

Derivatives, different types of Kevin
functions and their Wainwright
derivatives, implicit Fundamen
differentiation (chain rule) tal
● (no trigonometric functions) methods of
Mathemati
cal
One variable Calculus –
Economics,
Applications
Fourth
● Maxima and Minima, edition.+
Production functions, Cost Tutorials
functions, Revenue and
profit functions, Demand
functions and elasticity.

Applications to Economics

● Discriminating Monopoly.
● Imposition of tax and
Subsidy

Introduction to Partial derivatives

(Multivariable functions) (basic
algebraic numericals)

5 Integration Class room 7 marks

teaching +
● Basic Integration UV rule. tutorials

(Algebraic functions).
● Consumers Surplus,
Producers Surplus.
● Applications cost functions,
revenue functions, profit
functions.

6 Concavity and convexity of the Class room Mathemati 7 marks

teaching + cs for
function tutorials
Economist
● Diagrammatic s, Carl P
representation of Simon and
 School name -ID-1
SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

concavity and convexity Lawrence

for the function of single Blume +
variable, derivative tutorials.
conditions for concavity
and convexity (only using
derivatives)
● Point of inflexion using
derivatives
7 Matrices and Matrix Algebra Class room Mathemati 8 marks
teaching + cs for
● Matrices and vectors, Matrix tutorials
Economics
operations, Commutative, and
Associative and distributive Business,
laws, Types of matrix, R.S.Bhard
waj +
Transposes and inverses
Mathemati
● Cramer’s rule. cs for
Application to market and national Economist
income models-commodity models. s, Carl P
Simon and
Lawrence
Blume +
tutorials
8 Linear Algebra Classroom Mathemati 10 marks
teaching + cs for
● System of equations, tutorials
Economics
converting system of and
equations in Matrix Business,
equation, row-echelon R.S.Bhard
waj+
matrix, reduced row echelon
Mathemati
matrix cs for
● Gaussian elimination and Economist
GaussianJordan elimination, s, Carl P
● Rank of the matrix, how to Simon and
think about the solution of Lawrence
the system of equations with Blume +
tutorials.
the rank of the matrix,
● Finding inverse of the
matrix- manually.

Applications to Economics

● Leontief Input-Output
Models – an application
(Open model) only
introduction of concept as an
application to linear algebra
9 Application of logarithmic and Classroom Mathemati 5 marks
 School name -ID-1
SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

exponential function teaching + cs for

tutorials Economist
Future value and present value, s, Carl P
and optimal holding time. Simon and
(applications) Lawrence
Blume +
tutorials.
10 Interpolation and Extrapolation Class room Introductory 5 marks
teaching + methods of
tutorials
Binomial expansion method, numerical
Newton’s method, LaGrange’s analysis by
method. S.S. Sastry.

Text Books:
1) Alpha C Chiang, Kevin Wainwright, Fundamental methods of Mathematical Economics,
Fourth edition, Nov 2005 McGraw-Hill,New York.
2) Schaum’s Outlines, Introduction to Mathematical Economics, Edward T Dowling, 3 rd
edition.
3) Mathematics for Economists, Carl .P.Simon and Lawrence Blume, ISBN 0-393-95733-
0.
4) Mathematics for Economics and Business, R.S.Bhardwaj, Excel Books India, 2007.
Reference Books:

1. Mathematics for Economics, Michael Hoy, John Livernous, Chris McKenna, Ray Rees,
Thanasi’s Stengos, The MIT press, Cambridge Massachusetts, London, Second Edition.
2. Taxman’s, Mathematics and Statistics, Ajay Goel and AlkaGoel.
3. Essential Mathematics for Economic Analysis,KnutSydsaeter,Peter Hammond and Arne
Storm,4th edition.
Economic Analysis

Details of Term Work:

 School name -ID-1
SVKM’s NarseeMonjee Institute of Management Studies

Name of School – Sarla Anil Modi School of Economics

Components Weights
Continuous evaluation 50
Quiz /Tests(3 tests will be 40
conducted and best of 2 will
be considered)
Viva 5
Individual Assignment 5
End Term 50

Prepared by Approved by

Signature : Signature
(Concerned Faculty/HOD) (Dean)