DEPARTMENT OF ECONOMICS

UNIVERSITY OF GHANA
FIRST SEMESTER 2023/2024

ECON213: Elements of Mathematics for Economists

Lecture Periods/Venues:
Mondays: 7.30 - 9.20am @ NNB1
Wednesdays: 11:30am - 13:20pm @ NNB1

Lecturers:
Dr. Monica Lambon-Quayefio (MLQ)
Office Location: Rm 8, Dept. of Economics Annex (EPM Building)
Office Hours: Monday 2:30 – 3:30pm; Thursday 9:30 – 10:30am
E-mail: mplambon-quayefio@ug.edu.gh

Dr. Emmanuel Abbey (EA)

Office Location: Ground Floor, Dept. of Economics Annex (EPM Building)
Office Hours: Mondays 10:00am – 12noon
Email: ekadu-danso@ug.edu.gh

Course Introduction
This course introduces you to how economic problems can be expressed and solved in mathematical
terms. Economic models lend themselves to be expressed in mathematical form. Economists make use
of mathematical symbols in the statement of the problem and also draw upon known mathematical
theorems to aid reasoning. For this reason, most scholars in economics express their work in
mathematical terms. This course should enable you to better understand economic theory.

In this course you will learn the mathematics that you require but emphasis will be on its application
in formulating and solving economic problems. The mathematical skills you will learn include how to
solve systems of linear equations, matrix algebra, one variable and several variables calculus. Students
will be taught how to investigate different comparative static problems and optimization problems
with the developed mathematical tools.

As it is with most quantitative courses, we will urge you to keep up with lectures. Do not “pile-up”
lectures since you will find it difficult to catch up if you do. In this course the only way to understand
the concepts clearly is to practice solving as many problems as you can. The assigned texts contain
many problems. Do well to solve as many of them as you can. The Dowling text contains numerous
solved problems for you to cross-check your solutions.

Course Goals
1) Introduce the student to mathematical concepts such as differential and integral calculus and
matrix algebra
2) Develop an understanding of how to formulate economic problems in mathematical terms
3) Gain an understanding of how economic problems can be solved mathematically

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 Course Objectives
By the end of this course students should be able to:
i. Solve calculus problems involving several variables, including partial derivatives of explicit
and implicit functions
ii. Solve both unconstrained and constrained optimization problems
iii. Apply calculus to different comparative static problems to find maximum and minimum
values of functions of several variables
iv. Apply the Lagrange multipliers approach to constrained optimization problems

Class Format
The class will consist of a series of lectures and problem-solving sessions that will require the
involvement of every student. Problem sets will be given after every lecture which students are
required to solve by themselves or with the assistance of the teaching assistant assigned to the course
during tutorial sessions. An Interim Assessment (IA) will be held between the 5th and 6th weeks of the
semester (the IA will be on a Saturday or a Sunday. This will be arranged in consultation with
Academic Affairs Directorate). There will be final examination at the end of the semester. Students
must note that attendance at lectures is compulsory.

Grading Policy
The course will be graded over a100%. The interim assessment will account for 30% while the final
examination takes the remaining 70%.

The grading scale is as follows: 80-100 = A; 75-79 = B+; 70-74 = B; 65-69 = C+; 60-64 = C;
55-59 = D+; 50-54 = D; 45-49 = E; 0-44 = F

Academic Integrity
Each student is reminded that the rules of scholarship and academic integrity enjoin the student to be
honest in tests, assignments and examinations.

Main Texts
1) Chiang, A. C., “Fundamental Methods of Mathematical Economics”, 3 rd Edition, McGraw Hill
Book Co., New York, 1994.

2) Dowling, E. T., “Introduction to Mathematical Economics”, 3 rd Edition, Shaum’s Outline Series,

McGraw-Hill Inc., 2001.

Other texts
1) Jacques, I., Mathematics for Economics and Business, 9th Edition, Prentice Hall, 2018

2) Sydsaeter, K., P. Hammond and P. StrØm, Essential Mathematics for Economic Analysis, 4th
Edition, Prentice Hall, 2012

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 Course Schedule
Week Topic References
1 Introduction I
Nature of mathematical economics; Economic models
Chiang, A (1994) Chapter 1, 2.
Functions of one variable; Linear functions Nature
Dowling, E.T. (2001) Chapter 1, 2.
2 Introduction II
Jaques, I (2018) Chapter 1, 2.
Algebraic solution of systems of simultaneous linear equations
Sydsaeter, Hammond & StrØm, (2012) Chapter 2, 4
3 Review of Basic Mathematics
Non-linear functions: quadratic, cubic, exponential and logarithmic
Applications: supply and demand analysis, national income determination.
4 Introduction to Matrix Algebra I
Basic matrix operations (addition, subtraction, multiplication). Chiang, A (1994) Chapters 4, 5.
Inverse of a matrix, Determinant of a matrix; Matrix solution of system of linear equations; Dowling, E.T. (2001) Chapters 10, 11.
Cramer’s rule Jaques, I (2018) Chapter 7.
5 Introduction to Matrix Algebra II Sydsaeter, Hammond & StrØm, (2012) Chapters 15, 16.
Application of matrices: market, national income models, Leontief input-output models.
6 Introduction to Matrix Algebra III Chiang, A (1994) Chapters 4, 5.
Application of matrices: market, national income models, Leontief input-output models cont’d. Dowling, E.T. (2001) Chapters 10, 11.
Jaques, I (2018) Chapter 7.
Sydsaeter, Hammond & StrØm, (2012) Chapters 15, 16.
INTERIM ASSESSMENT
7 Differential Calculus I
Derivative of a function; Rules of differentiation.
Chiang, A (1994) Chapters 6, 7 & 8.
Optimization of economic functions; stationary, maximum and minimum points.
Dowling, E.T. (2001) Chapters 3, 4.
8 Differential Calculus II
Jaques, I (2018) Chapters 4, 5.
Partial differentiation; Total differentiation; Unconstrained optimization
Sydsaeter, Hammond & StrØm, (2012) Chapters 6, 7.
9 Differential Calculus III
Constrained optimization. Lagrange multipliers; Applications
10 Differential Calculus III Chiang, A (1994) Chapter 13
Integral Calculus: Definite and indefinite Integrals; Methods of integration; Dowling, E.T. (2001) Chapters 14, 15.
11 Differential Calculus IV Jaques, I (2018) Chapter 6.
Applications of Integration Sydsaeter, Hammond & StrØm, (2012) Chapters 9.
12 REVISION

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