Economics semester - 3

Mathematics and Statistics for Economics

Tools of Economic Analysis

Introduction:


Nature and Scope of Mathematical Economics
Role of Mathematics in Economic Theory


Functions and Functional Relations:


Linear and Non- Linear Functions
Demand and Supply Functions
Liquidity Preference Functions
Production Possibility Curves
Indifference Curves


Concept of Sets:


Meaning and Types
Union of Sets
Intersection of Sets


Module 2: Economic Application of Linear Functions


Determination of Market Equilibrium Price and Quantity
Impact of Specific Tax on Market Equilibrium
Impact of Subsidy on Market Equilibrium


Module 3: Derivatives of Functions


Concept of Limit and Continuity
First Principle of Differentiation Relating to Algebraic Functions
Application of Differential Calculus to Economics to Derive Marginal Revenue and Marginal Cost Function and Total Revenue and Total Cost Functions
Elasticity of Demand
Revenue/Profit Maximization and Cost Minimization


Module 4: Definition and Scope of Statistics


Definition
Importance of Statistics in Economics
Limitations


Module 5: Sources of Data and Presentation of Data


Primary and Secondary Sources
Classification and Tabulation of Data
Diagrammatic Representation of Data


Module 6: Measures of Central Tendency


Mean, Median, Mode
Geometric Mean and Harmonic Mean for Grouped and Ungrouped Data


Module 7: Measures of Dispersion




Range, Semi-Inter Quartile Range,
Mean Deviation and Standard Deviation
Lorenz Curve