Ppt1 To 4

Question 1

Methematical economics refers to an economic model that uses the
principles and methods of mathematics to create economic theories and
analyze economic dilemmas. Mathematics helps economists to perform
quantifiable experiments and create models for predicting future economic
growth.
• It refers to the application of mathematical principles in developing theories
and evaluating problems relating to economics. When economists use
mathematical methods when creating theories and analyzing economic
problems, mathematical economics is put to use.
• Mathematical economics can also be defined as an integration of
mathematical methods and economic principles to formulate economic
theories and analysis of problems.

Answer 1

What is mathematical economics

Question 2

To prove, disprove, or forecast economic
behavior, mathematical economics depends on
statistical observations. Even though the
researcher’s bias heavily influences the
discipline of economics, mathematics enables
economists to describe an observable
phenomenon and offers the backbone for
theoretical interpretation.

Answer 2

Understanding Mathematical Economics

Question 3

• Mathematical economics paved the way for
genuine economic modeling. Through the
inclusion of mathematics, theoretical
economic models have become useful
instruments for day-to-day economic
policymaking.
• Mathematical economics is especially useful in
resolving optimization problems where, for example,
a policymaker looks for the best change out of a
variety of changes to affect a particular outcome.

Answer 3

Impact of Mathematical Economics

Question 4

___________________ is the branch of economics concerned
with using mathematical methods (especially statistics)
to describe economic systems.
• ___________________ as a whole has the goal of translating
qualitative statements (such as “the relationship
between two or more variables is positive”) into
quantitative statements (such as “consumption
spending rises by 95 cents for each dollar increase in
disposable income”).

Answer 4

Econometrics

Question 5

A ___________________ is a rule that assigns to each object in set A exactly
one object in set B. Set A is called the
domain of the function and
the set of assigned objects in set B is called range.

Answer 5

function

Question 6

. It is typically written as y
= a + bx where y is the dependent variable, whose value depends
on the value of the independent variable (x) and two constants – ‘a’
and ‘b.’

Answer 6

Linear functions

Question 7

, including cubic and quadratic functions

Answer 7

Non-linear functions

Question 8

“_________” statement isamathematical expression, that is
called a
function.

Answer 8

if ..then

Question 9

Increasing or decreasing the intercept is called?

Answer 9

Shifting the curve

Question 10

If the slope changes, the curve swings (or rotates or pivots-whatever that swinging motion is called). Previously we had y = 2x + 3 Suppose now the slope increases from 2 to 3 Then our new lineis y = 3x + 3 Going through the if then statements

Answer 10

Swinging the curve

Question 11

The quantity q of a commodity that the consumers will
purchase depends on the price p at which the commodity is
made available. An equation giving the relationship between
the quantity demanded and the price is called the demand
function. The linear demand function is as p = mq + b, where
m is the slope of the demand line, and b is the y-intercept

Answer 11

The demand function

Question 12

In certain cases, the slope of the demand line may be zero,
which means constant price regardless of demand. The linear
equation for this demand is p = b

Answer 12

Demand with zero slope

Question 13

In other cases, the slope of the demand line may be infinite, which means
constant demand regardless of price. The linear equation for this demand
is q = a

Answer 13

Demand with infinite slope

Question 14

The quantity q of a commodity the producers will supply
depends on the price at which the commodity will be supplied
in the market. An equation giving the relationship between
the quantity supplied and the price is called the supply
function. The linear supply function is given as p = mq + b,
where m is the slope and b is the y-intercept

Answer 14

The supply function

Question 15

occurs when the quantity of a commodity demanded
is equal to the quantity supplied. If the supply and demand curves for a
commodity are sketched on the same Cartesian coordinates with the
same units, the market equilibrium occurs at the point where the graphs
intersect

Answer 15

Market equilibrium

Question 16

If the revenue from sales exceeds the cost of production, there is a profit
for the producer; if the revenue equals the cost of production, then the
producer neither gains nor losses; it breaks-even; and if the cost of
production exceeds the revenue, then the producer is operating at a loss

Answer 16

Break even analysis

Question 17

In economics, exponential functions are important
when looking at growth or decay.
Examples are the value of an investment that increases
by a constant percentage each period, sales of a
company that increases at a constant percentage each
period, models of economic growth, or models of the
spread of an epidemic.

Answer 17

Exponential Function