Department of Economics, North South University

Fall 2013.
ECO244: Applied Mathematics Section. 8, 11 & 14
Instructor: Humaira Husain (HHn) Lecturer, Dept. of Economics
Office: NAC 819
Consultation hours: ST: 12.00pm to 1.00pm and 3.15 pm to 4.15pm
MW : 10.15 am to 11.15pm and 1.00pm to 2.00pm.
Email: humaira@northsouth.edu
Course Objective:
The aim of this course is to assist students to get familiar with the standard mathematical/
quantitative techniques frequently used in microeconomic and macroeconomic theory ,
as well as in Business and Finance. Basically the course is thoroughly application oriented.
Upon completion of this course , students should have sound and thorough understanding
about
How differential calculus is applied to solve problems principally in
microeconomics like constrained and unconstrained optimization problems.
The application of Integral calculus in microeconomics.
The application of differential equation and difference equation in simple
microeconomic and macroeconomic models.
Standard quantitative tools used in Finance.
Prerequisite: ECO101, ECO104, ECO134
Text Book: Fundamental methods in Mathematical Economics authored by Alpha . C.
Ciang. 3rd or 4th edition.
References:
1. Mathematical Economics by Edward . T. Dowling.
2. Mathematics for Economics and Business authored by Ian Jacques. Prentice Hall 2006.
Or latest edition if available.
Grading Policy: The course grade will be based on Curve system. The weights are as
follows:
Best 2 Quiz (out of 3)
Mid-Term-1
Mid-Term-2
Final Examination
Total:
Topics expected to be covered:

:
:
:
:
:

20%
20%
25 %
35 %
100%

1. Exponential and logarithmic function: Application in Business and Economics

2. Math for Finance
a. Time value of money
b. Simple interest rate and compound interest rate
c. Present and future value of an annuity
3. Basic attributes of production functions :
a. Linearly homogenous function
b. Cobb-Douglas production function
c. Constant elasticity of substitution production function
4. Unconstrained optimization: Multivariable objective function ( 2 variable and 3
variable case)
5. Constrained optimization :
Lagrange multiplier method ,
Application in production decision problems with resource constraints/ Utility
maximization with Budgetary constraint.
6. Integration:
a. Introduction , Integration by substitution,
b. Integration by parts, Numerical integration and its examples in Business and
Economics.
7. First Order Differential equation:
a. Solution procedure for differential equation with constant coefficient and constant
term.
b. Application in Microeconomic model of Demand and supply and Macroeconomic
model of National Income determination.
8. First Order Difference equation:
a. Solution procedure for first order Difference equation with constant coefficient
and constant term.
b. Application in Microeconomic and Macroeconomic models .
Course regulations:
1. Mobile phones must be switched off during the class hour.
2. Make-up exams will be arranged only in case of emergency , subject to submission of
genuine documents. There will be NO MAKE-UP for quiz tests under any
circumstances.
3. Distracting the instructor by talking to other classmates is not allowed.
4. Students are free to consult the instructor regarding the class material only during
the office hour mentioned.
5. Attendance is important to earn satisfactory grade in this course.