ECON 130

EGERTON UNIVERSITY

ECONOMICS DEPARTMENT
ECON 130: Introduction to Mathematics for Economists
INSTRUCTOR: Mutuerandu B. K
INTRODUCTION
This is the first course in a series of mathematical economics courses students are being exposed to. It’s an
elementary course for undergraduates aimed at equipping students with the necessary mathematical tools so as to
strengthen their capacity to study economics.
Various mathematical techniques and procedures are first developed and then used in economic analysis.
Nothing in the course will be made intentionally difficult. However, nothing will be ignored simply because it is
too difficult.
Course Objectives
By the end of the course you will be able to:
1. Analyze economic problems using mathematical tools.
2. Present and interpret economic phenomena in mathematical form.
COURSE OUTLINE
1.0: NATURE AND SCOPE OF MATHEMATICAL ECONOMICS.
1.1 Meaning of Mathematical Economics
1.2 Economic theory, Economic model and Mathematics
1.3 Mathematical vs Nonmathematical Economics
1.4 Advantages of mathematical approach in economic analysis
2.0: ALGEBRA
2.1 Fundamental techniques in algebra
2.1.1 Real number system
2.1.2 Properties of real numbers
2.1.3 Modulus/Absolute values
2.1.4 Rules of Algebraic Operations
2.1.5 Exponent and laws of exponent
2.2 binomial expansions
2.3 Set theory
2.3.1 Meaning of a set
2.3.2 Representation of sets
2.3.3 Types of sets
2.3.4 Set operations
2.3.5 Relations and Functions
3.0 FUNCTIONS
3.1 Linear functions
3.1.1 The concepts of a function
“Transforming Lives through Quality Education”
Page 1 of 3
 ECON 130
3.1.2 Functions of single independent variable
3.1.3 Linear and constant functions
3.1.4 Intercepts
3.1.5 Slope of a line
3.1.6 Origins of linear functions in economics
3.1.7 Types of linear functions
3.1. Application of linear functions in economic analysis
4.0: LINEAR EQUATIONS
4.1 Concepts of an Equation
4.2 Definition of linear Equation
4.3 Solution of linear Equation
4.4 Application of linear equations in economic analysis
5.0: DIFFERENTIATION
5.1 The concept of rate of change and limits
5.2 The derivative of a function
5.3 Rules of differentiation
5.4 Application of differentiation in economic analysis
6.0: UNCONSTRAINED OPTIMIZATION OF UN-VARIATE FUNCTIONS
6.1 Optimization problem
6.2 Objective function
6.3 Relative and absolute extrema
6.4 Test for maxima and minima
6.4.1 Necessary condition (first order test)
6.4.2 Sufficient condition (second order test)
6.5 Application of unconstrained optimization in economic analysis
EVALUATION
COURSE WORK 30%
MAIN EXAM 70%
TOTAL 100%
Mode of course work Evaluation: Minimum of two sit-in CATs accounting for 20% and at least one take away
CAT accounting for 10%.
MAIN TEXT BOOKS
Dowling Edward T,(2000) “Schaum’s outline introduction to mathematical Economics’’. New York: McGraw-Hill
Mukras M.S., ‘‘Elements of Mathematical Economics’’. 2nd edition. Kenya Literature Bureau.
Nairobi.
OTHER REFERENCES
Archibald G.C and Lipsey R., (1990), ‘‘An Introduction to a Mathematical Treatment of Economics’’. 3ird Edition.
Virender Kumar Arya.

“Transforming Lives through Quality Education”

Page 2 of 3
 ECON 130
Black J. & Bradley J.F., (1980), ‘‘Essential Mathematics for Economist’’. 2nd Edition.
Edward T.D., (1993), ‘‘Theory and Problems of Mathematical Methods for Business and Economics’’. McGraw-
Hill, Inc.
G.S Monga, (2000), ‘‘Mathematics and Statistics for Economics’’. 2nd revised edition.
Holden K. and Pearson A.W. (1983), Introductory Mathematics for Economists; Macmillan Press; London
Ian Jacques, (2003), ‘‘Mathematics for Economics and Business’’. 4th edition. Prentice Hall Financial Times.
Jim Dewhurst (1988) Business Mathematics Macmillan Education Ltd.,
K. Holden & A. W. Pearson, ((1992), ‘‘Introductory Mathematics for Economics and Business’’. 2nd edition.
MACMILLAN PRESS LTD.
Malcolm Pemberton & Nicholas Rau, (2007) Mathematics for economists: An Introductory Text Book. 2nd
Edition. Manchester University Press
Martin Anthony & Norman Biggs, (2000), ‘‘Mathematical for Economics and Finance. Methods and
Modelling’’.Camridge University Press.
Mukras M.S., (1986), ‘‘Elements of Mathematical Economics’’. Kenya Literature Bureau.Nairobi.
Raymond A., Michael R. & Karl E.(2000), ‘‘Applied Calculus for Business, Economics, Life Sciences & Social
sciences’’. Seventh Edition.
Raymond A., Michael R. & Karl E.(2000), ‘‘Applied Mathematics for Business, Economics, Life Sciences & Social
sciences’’. Seventh Edition.
Spooner H.A. & Wilson D., (1991), ‘‘The Essence of Mathematics for Business’’. Prentice Hall, Europe.
Survey. Prentice Hall; New Delhi.
Taro Yamane (1988). Mathematics for Economists. An Elementary Survey. Prentice Hall; New Delhi.
Weber, J.B. (1976) Mathematical Analysis; Business and Economic Applications. Harper New York
N.B Note that this list of references is not exhaustive hence it is recommended that you read any
Mathematical economics textbook relevant to specific topic(s).

******************************************************************************

“Transforming Lives through Quality Education”

Page 3 of 3