Course Supervisor related Economics

University X

Department of Economics

Spring 2009

ECO 134: Applied Mathematics I

Course Supervisor:



Office Room: SPZ 1135

Office Hours: ST: 2:00-6:00 PM

MW: 3:00-4.00 PM

(and by Appointment)


The required text for the course is:

Alpha C. Chiang, Fundamental Methods of Mathematical Economics, 4th Edition, McGraw –Hill.


Frank S. Budnick, Applied Mathematics for Business, Economics and the Social Sciences, 4th Edition, McGraw-Hill.

Edward T. Dowling, Theory and Problems of Introduction to Mathematical Economics, 2nd Edition, McGraw-Hill.

In order to develop a deep understanding of the different mathematical topics covered in the course, students are asked to complement the lecture notes with the related chapters of the book. Handout will be provided if any reference beyond the suggested text is given.


There are two lectures per week in the Spring Terms. The exam questions will be designed on the basis of class lectures, discussion and relevant chapters from the text. Students are encouraged to read the relevant chapters carefully to arise problem on the following lectures. The format of the questions will be analytical in nature.

Three hours will be provided for student’s consultation in a week per section. The consultation hours give the students the chance to raise their own questions, identify and overcome common problems.


There will be two midterm examinations, 3/4 quizzes and final examination. There would not be any arrangement for make-up test.

Examination schedule will be announced in time except quizzes. You might have to face one surprise quiz anytime during the semester. For evaluating the final grade, the lowest test grade will be dropped.


Course Grade will be determined as follows:

Quizzes 10%
Assignments 10%
Mid Term I 20%
Mid Term II 25%
Final 35%

Course Grade will be based on a curve system. According to this system a student’s position determines his/her overall letter grade.


The course is designed to explain a number of mathematical concepts, techniques and applications which are fundamental for the students in Business, Economics and the Social Sciences. The focus is mainly on improving a student’s problem solving skills – many applied economic and business examples are considered, both within lectures and in problem sets. The topics covered include different mathematical tools such as equations and functions, matrix algebra and differential calculus etc.


Students are required to solve Problem Sets comprising different problems and exercises from the relevant topics which will be given after completing each chapter. Additionally, Students are encouraged to consult with each other when attempting the problem set questions.


Ø      Some Preliminaries

Ø      Economic Applications of Graphs and equations

Ø      Inequalities and their solution

Ø      The Real Number System

Ø      The Concept of Sets

Ø      Mathematical Functions

Ø      Equilibrium Analysis in Economics

Ø      Linear Models and matrix Algebra

Ø      Comparative Statics and the Concept of Derivative

Ø      Rules of Differentiation and their use in Comparative Statics

Ø      Comparative-Static Analysis of General-Function Models

Ø      Optimization: Methodology and Applications