Course detail

Mathematic of Economics

FP-VmePAcad. year: 2016/2017

The subject deals with the modelling of economic processes (micro and macro) by means of exact means of current engineering mathematics to set up conditions for subsequent computerizing. The contents includes : demand and supply analysis; revenue, cost and profit analysis; elasticity of demand and supply;production;utility; accounting of national income.

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 fundamentals of mathematical analysis and linear algebra.

Co-requisites

Not applicable.

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 course of the exam:
The exam has the written and the oral part with the written part taking two hours being more important. 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.The written part contains the following tasks with maximum points awarded in brackets:

1. Decision making task on the type of economic function (10 points).
2. Definition and interpretation of an economic quantity (20 points).
3. Computation task (30 points).
4. Computation task (40 points).
The overall assessment of the written part is given by the sum of points reached from the tasks 1-4 together with the fullfiling of the following conditions (a),(b),(c):
(a) Reaching at least 11 points in the sum of points from tasks 1 and 2
(b) Reaching at least 10 points from task 3
(c) Reaching at least 10 points from task 4
points
A excellent 1 90-100
B very good 1- 80-89
C good 2 70-79
D satisfactory 2- 60-69
E sufficient 3 50-59
7 failed 4 0-49 or not fullfiling at least one of the conditions (a),(b),(c)
The overal assessment of the exam is the result of the overall assessment of the written part and the oral part.The student may reject the overal assessment B,C,D,E. This must be realized immediately before the closing of the assessment by the examiner. In such event. the student is classified as "F" and he may repeat the exam in the next term assuming that he still did not realized three attempts


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 of the course is to deal in more detail with the causal substance of economic relations, and to develop abilities and skills necessary to express economic relations by exact means and consequently carry out their analyses.

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