ECON1005 Intro to Maths for Economics
This module aims to provide a good grounding in the theory and application of differential calculus, and other techniques widely used in Economics and Finance. It is aimed at students who do not hold an A level in Mathematics at Grade B or above. It is compulsory for joint honours courses with Economics for students who are not taking ECON1008. The module can also be taken as an optional module by students outside Economics who wish to follow a basic quantitative mathematics course. The syllabus covers indices (or powers); differentiation; partial differentiation; simultaneous equations; quadratic equations; unconstrained optimisation; the mathematics of finance; exponential functions; logarithms, and integration. The module is designed to prepare students for further quantitative modules in 2nd and 3rd year. It also complements the teaching of first year microeconomics and macroeconomics modules.
Aims and Objectives
Having successfully completed this module, you will be able to: Manipulate algebraic expressions including non-linear functions; Produce graphical illustrations of an algebraic expression; Solve simple simultaneous equation models algebraically and illustrate this solutions; Use the basic principles of calculus to differentiate functions and locate maximum and minimum values; Apply mathematical techniques to the study of economic models; Calculate present values and derive the effects on compound interest of different interest rates; Use economic theory to evaluate the results of mathematical problems and to consider whether they are realistic.
Having successfully completed this module you will be able to:
- Use integration techniques to calculate areas, including the amount of consumer surplus
- Manipulate algebraic expressions including non-linear functions
- Produce graphical illustrations of an algebraic expression
- Solve simple simultaneous equation models algebraically and illustrate this solution
- Use the basic principles of calculus to differentiate functions and locate maximum and minimum values
- Apply mathematical techniques to the study of economic models
- Calculate present values and derive the effects on compound interest of different interest rates
- Use economic theory to evaluate the results of mathematical problems and to consider whether they are realistic
Linear functions with applications to Supply and Demand models; differentiation and its use in deriving marginal functions and elasticities; the calculation of unconstrained optimisation and how it is used to explain profit maximisation and price discrimination; integration and its use in calculating producer and consumer surplus, and the use of simple dynamic models.
Learning and Teaching
|Completion of assessment task||1|
|Total study time||150|
Resources & Reading list
Mathematics for Economics and Business.
This module is assessed as follows: two hour final examination (80%), mid-term test (10%) and coursework (10%).
|Exam (2 hours)||80%|
|Mid-term test (45 minutes)||10%|
|Exam (2 hours)||100%|
Repeat type: Internal & External
To study this module, you will need to also study the following module(s):
|ECON1007||Statistics for Economics|
Costs associated with this module
Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.
In addition to this, students registered for this module typically also have to pay for:
Books and Stationery equipment
It is not compulsory to purchase a textbook for the course. There are many e books and hard copy books available in the library.
Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.