ECON 131
EGERTON UNIVERSITY
ECONOMICS DEPARTMENT
ECON 131: Introduction to Mathematics for Economists
Credit Hours -45 Lecture Hours
Purpose of the course
The course will equip learners with skills to apply mathematical principles and methods to economic theory and
use them to analyze economic dilemmas.
Expected Learning Outcomes of the Course
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.
3. Use mathematical techniques making economic decision.
4. Apply mathematics in the realm of Economics and Business.
Course Content
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
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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
Instructional methods
Lecture method
Cooperative and Collaborative Method
Instructional Materials and/or Equipment
Lecturer-made resources
Textbooks
Student Assessment at course level
COURSE WORK 30%
MAIN EXAM 70%
TOTAL 100%
Mode of course work Evaluation will include CAT’s and Assignments
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ECON 131
Core Reading Materials for the Course
Malcolm Pemberton & Nicholas Rau, (2015) ‘‘Mathematics for economists: An introductory textbook’’.
Manchester University Press; 4th Edition.
Mukras M.S., (2010) ‘‘Elements of Mathematical Economics’’. 2nd edition. Kenya Literature Bureau.
Nairobi.
Recommended Reference Materials for the Course
Archibald G.C and Lipsey R., (1990), ‘‘An Introduction to a Mathematical Treatment of Economics’’. 3ird Edition.
Virender Kumar Arya.
Black J. & Bradley J.F., (1980), ‘‘Essential Mathematics for Economist’’. 2nd Edition.
Dowling T. Edward, (2000) “Schaum’s Outline Introduction to Mathematical Economics’’. New York: McGraw-
Hill
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.
Martin Anthony & Norman Biggs, (2000), ‘‘Mathematical for Economics and Finance. Methods and
Modelling’’.Camridge University Press.
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
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