Course detail

Mathematic of Economics

FP-VmePAcad. year: 2013/2014

The subject is a part of theoretical fundamentals. The aim is to manage calculations with numeric variables (including the use of IT), combinatorics, and the analysis of functions of one real variable, including their applications in economic disciplines.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Learning outcomes of the course unit

Acquired knowledge and practical skills will be applied to modelling dependencies of factors relating to economic phenomena, explaining their relations and solving problems of microeconomic and macroeconomic environment by with simple mathematical methods.

Prerequisites

Knowledge of secondary-school mathematics.

Co-requisites

Not applied.

Planned learning activities and teaching methods

Instructing is divided into lectures and exercises. Lectures are focused on the theory referring to applications, exercises on practical calculations and solving of application tasks.

Assesment methods and criteria linked to learning outcomes

Conditions for awarding course-unit credits:
- active participation in the seminars where the attendance is compulsory,
- fulfilment of individual tasks and successful completion of written assignments,
- completion of a written test in the course of semestr marked at least with
“E”.
Awarding of course-unit is a necessary condition to be admitted to the exam.
The exam has a written and an oral part with the written part being more important. The written part takes two hours and contains the following types of tasks with maximum points awarded in brackets:

1. Depicting of the graph of a function (13 points).
2. Calculation of a value of a derivative at a given point (14 points).
3. To state a hypothesis on a function limit and calculation of the limit using basic formulas (11 points).
4. Task regarding combinatorics (11 points).
5. Task regarding economic or geometric application of derivation or differential (11 points).
6. Determining a course of a function-polynomial of the third degree (40 points).

Other conditions include: achieving at least 30 points in tasks 1-5 together and at least 20 points in task 6 and no more than one tasks is awarded "0" points.
The written part is marked in points and reflects the points achieved in individual tasks. If any task is marked "0" then the student can not obtain grades A,B,C. If the student does not achieve at least 50 points out of 100 or if any other condition is not satisfied, the written part of the exam and the whole exam will be graded as “F” (failed) and the student cannot proceed to the oral part. Grading of the written part is as follows: “A” is awarded for 90–100 points, “B” for 80-89 points, “C” for 70-79 points, “D” for 60-69 points, “E” for 50-59 points.

The written exam is followed by an oral exam which does not take more than 10 minutes. Its main objective is to make the classification more accurate. In the oral exam, the student informed about the results achieved in the individual tasks of the written exam. Possible discrepancies in the written part can be solved in the oral exam. If appropriate, additional questions can be placed, and the student is given time to prepare.

Course curriculum

1. Basic principles of economic analysis and modeling
2. Demand and supply
3. Revenue, cost, profit
4. Elasticity
5. Production
6. Utility
7. National income

Work placements

Not applicable.

Aims

The aim is for students to master numerical calculations (including the use of IT), combinatorics, and the analysis of functions of one real variable, including their economic applications.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not controlled. Attendance at exercises (seminars) is compulsory and is regularly checked. A student is obliged to give reasons for his/her absence. If the teacher accepts the reason for the absence (which is completely under his/her competence), he/she will decide about the form of the compensation for the missed lessons.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

A.C. Chiang, Fundamental Methods of Mathematical Economics, McGraw-Hill Inc., New York, 1984 (EN)
C.J. McKenna and R. Rees, Economics: A Mathematical Introduction, Oxford University Press Inc., New York, 1992 (EN)
I. Mezník, Úvod do matematická ekonomie pro ekonomy,FP VUT v Akademickém nakladatelství CERM,s.r.o., Brno 2011 (CS)
J.U. Koch and L.A. Ostrosky, Introduction to Mathematical Economics, McGraw-Hill Inc., Singapore, 1994 (EN)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK-KME Bachelor's

    branch BAK-MME , 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

Exercise

26 hod., compulsory

Teacher / Lecturer