23508 Quantitative Methods in Economics and Business
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Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Anti-requisite(s): 23565 Mathematics for Economics and Business
Description
This subject provides students with quantitative skills and methods that are essential for working in the economic and business professions. In particular, the subject emphasises the analytical approach to optimisation decisions, ranging from profit or wealth maximisation to cost minimisation. By explaining the logic of the analytic approach, the subject equips students with the foundations to systematically analyse scenarios involving complex trade-offs, such as many problems encountered in practical business life.
Subject learning objectives (SLOs)
| 1. | explain and execute the analytic approach to systematically analyse scenarios involving complex trade-off |
|---|---|
| 2. | apply quantitative methods to a range of problems in economics and business, in particular to optimization decisions |
| 3. | use the results obtained from the application of quantitative methods and the analytic approaches to inform the analysis and discussion of a range of problems in economics and business |
Contribution to the development of graduate attributes
This subject introduces students to a range of quantitative methods used widely in intermediate and advanced economics subjects and practical business life. It will enhance students’ ability to understand core problems by equipping them with an analytical approach to analyse and solve these problems. This subject strongly contributes to the development of students’ analytical and mathematical skills. This subject also contributes to students’ communication skills by emphasizing conciseness and clear presentation of derivations and results.
This subject contributes to the development of the following graduate attributes:
- Intellectual rigour and innovative problem solving
- Professional and technical competence
- Communication and collaboration
This subject contributes specifically to introduce the following program learning objectives for the Bachelor of Economics:
- Combine economic analysis, data and econometric techniques to address typical complex problems faced by economists in diverse working environments (4.1)
Teaching and learning strategies
In this subject, students get involved in active learning throughout the entire semester. The subject is taught through a variety of interactive activities based on the concept that mathematical techniques are best understood through application. Formal feedback, which is regularly provided through fortnightly quizzes (see assessments), in conjunction with self-assessments and group learning activities ensure that students keep up with the subject.
Lectures: Lecture slides will be made available via Canvas several days prior to each respective lecture. Any additional learning materials used by the lecturer during the lecture will also be published in a timely manner. Throughout the lectures, students are regularly given short tasks to practice the newly introduced techniques in small groups. The lecturer provides immediate feedback and discusses answers with the students.
Supplementary Exercises: In addition to the main textbook, additional exercises will be made available to students for self-studying. They come in the form of online quizzes on Canvas. Next to giving students additional training in applying quantitative methods to problems, they also serve as a self-assessment.
Tutorial Exercises: Tutorial questions are provided via Canvas on a weekly basis. The tutorials will typically consist of both abstract exercises to display the mathematical techniques in full generality as well as applied exercises that demonstrate how the techniques are used in an economics or business-related context. During the tutorial, the tutor will support students in solving the exercises and encourage discussion of the solution concepts. Students receive immediate feedback on their work by both the tutor and their peers. Detailed solutions to the tutorial questions will be published immediately after the respective tutorials.
Homework: Per week students will be provided with a list of most relevant textbook exercises. Short answers for immediate feedback are provided. Furthermore, students are encouraged to discuss their solutions and questions with classmates and the lecturer via the online discussion board.
Content (topics)
- Linear Algebra: system of linear equations, the graphical approach, the elimination method, and matrix algebra. Applications: analysis of markets (`demand and supply model’), and the analysis of economies (`National Income model’).
- Introduction to non-linearity: quadratic functions/ equations, exponential functions/ equations. Applications: a firm’s trade-off between increasing the price and decreasing the quantity sold, the governments trade-off when raising a tax, and the compound-interest effect (financial mathematics).
- Single variable calculus: derivatives, linear-approximation, convexity/ concavity, optimization. Applications: interpretation of marginal quantities, and the resolution of a profit-maximising firm’s trade-off.
- Multi-variable calculus: total and partial derivatives, optimization, constrained optimization and the Lagrangian method, linear programming. Applications: consumers’ optimal consumption decision under budget constraints, profit maximisation and production decision of firms.
Assessment
Assessment task 1: Learning portfolio (30% Individual and 20% Group)*
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 50% |
| Criteria: |
*Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Final Exam (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 50% |
| Criteria: |
|
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Ian Jacques, Mathematics for Economics and Business, 8th or 9th edition, Pearson