SYLLABUS

ECEU601100
MATHEMATICS FOR BUSINESS AND ECONOMICS
Credit: 3
Odd Semester 2018/2019

A. Teaching Team
Lecturer[email]/Assistant
1. Nachrowi DJ Nachrowi [gnachrowi@gmail.com]
2. *Omas Bulan Samosir [omasbr@yahoo.co.uk]
3. Agus Salim/Emy Nurmayanti[ ]
4. *Sita Wardhani [sitawsuparyono@gmail.com]
5. *Ainul Huda [ainulh@gmail.com]
6. *Nanda Nurridzki/Amalia Anis [nnurridzki@gmail.com/ amalianishahab@yahoo.co.id]
7. Sartika Djamaluddin [ ]
8. *Tika Arundina/ [tikarundina@gmail.com]
9. *Sita Wardhani [sitawsuparyono@gmail.com]
10. Djoni Hartono [djoni.hartono@gmail.com]
11. *Prita Nurmalina/Uswatun Hasanah [ /uswahh@gmail.com
12. Tjahjanto Budisatrio/Sri Mulyono [ibus.tjahjanto@gmail.com/]
13. *Ledi Trialdi [ ]
14. *Witri Indriyani [ ]
15. *Pribadi Setiyanto

Note: *class in English

B. Subject Description

This course covers both concepts and techniques in mathematics that are relevant in
economic fields. It is intended to help students understand economic theories and perform
certain economic analyses. Topics such as linear model and matrix algebra, derivative, integral,
and optimization will be discussed and practiced in a broad range of economic analysis
frameworks. Moreover, during and outside the class session, the course facilitates students to
achieve some expected transferable skills and attitudes and evaluates them accordingly.
C. Course Type
Compulsory

D. Course Requirement
None

E. Expected Learning Outcome (ELO)

i. Hard Skill

After taking this course, students are expected to understand the basic concepts and
techniques of various mathematical methodologies, which will help them understand the
microeconomic and macroeconomic theories.

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Students are expected to understand the use of matrix algebra, static comparative analysis
and differential calculus, be able to solve static optimization with or without constrain, and
understand the concepts of integral calculus.

ii. Soft Skills

Skills Developed Ada/tdk
Technical Skills \/
Analytical Skills \/
Goal Setting skills \/
Time Management -
Writting Skill -
Presentation/Public Speaking Skill -
Teamwork -
Self-esteem -
Putting '-' next to self-esteem doesn't look good. Can we simply ommit the skills not
developed. Also, is self-esteem a skill?

iii. AACSB Learning Goals (LG) and Learning Objectives (LO)

 Assessed Learning Goal:
BASIC KNOWLEDGE: Students understand basic business and economics concepts
 Assessed Learning Objectives:
(1.4) Apply basic quantitative methods by using appropriate tools
Traits:
1.4.1. Use relevant basic quantitative method
1.4.2. Provide correct interpretation of the result from the chosen method

F. Reference

In principle, students are free to choose any reference they are comfortable with as long as
the chosen reference is relevant and can help them comprehend the subject and its
application properly. The list below provides some recommended references than can be
chosen by the students:

Chiang, A.C. & Wainwright, K. (2005), Fundamental Methods of Mathematical Economics, 4th
ed., International Edition, McGraw-Hill. [AC]

Chiang, A. C., K. Wainwright, B. Frensidy, M. Ekananda, and T. A. Falianty (2010), Fundamental

Methods of Mathematics for Business and Economics, Indonesian Edition: Volume 1,
Penerbit Salemba 4.

Dowling, E.T. (2001), Introduction to Mathematical Economics, Third Edition, International

Edition, McGraw-Hill.]

G. Assessment

Components Percentage (%)

20
Homework and Class Participation 20
Quiz 30
Mid term exam 30
Final Exam ----------------------
Total 100

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 H. Class Time Table

Week Topic & subtopics Reference Methodology

1 Introduction AC (1-2) Active Lecturing
 The nature of mathematical economics
 Functions: definition, types, domain-range,
generalization, and diagram
 Model ingredients: determining constants, coefficients,
and exogenuous/endogenuous variables

2 Equilibrium Analysis (1) : Static Equilibrium AC (3)

 Market mechanism and equilibrium
 Partial market equilibrium – linear and non- linear Problem Solving
model
 General market equilibrium: two-commodity market Active Lecturing
model
 Equilibrium in national income analysis
 Economic Application: Government intervention: unit
tax, subsidy, quota, and price policy

3 Equilibrium Analysis (2) AC (4)

Linear Model and Matrix Algebra (1) Problem Solving

 How to arrange a matrix system: various (economic)
models Active Lecturing
 Matrices and vectors
 Matrix and vector operations
 Identity matrices and null matrices
 Transposes and inverses
 Vector concept to non-singularity test
 Non-singular matrix:
conditions and tests

4 Linear Model and Matrix Algebra (2) AC (5)

 Gauss elimination and rank of matrix(?)
 Concept of determinants Problem Solving
 Finding determinant using Laplace expansion
 Finding the inverse matrix Active Lecturing
 From matrix inversion to Cramer’s rule
 Economic Application:
Applications of matrix inversion and cramer’s rule in
economic models: market, national income, IS-LM, or I-
O models

5 Comparative Statics and Derivative AC (5,6)

 The nature of comparative statics and derivative
 Rate of change Problem Solving
 Limit rules and roles
 Derivative and slope of curve Active Lecturing
 Inequality and absolute value concept
 Continuity and differentiability

6 Rules of Differentiation AC (7)

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  Rules of Differentiation for a Function of one or more
Variable Problem Solving
 Rules of Differentiation Involving Function of Different
Variable Active Lecturing
Partial Differentiation
 Economic Applications to comparative statics analysis:
market and national income model
 Other economic applications: marginal concepts,
money creation analysis
 Jacobian determinants

7  Concepts of differential and elasticity AC (8)

 Total differentials
 Total derivatives Problem Solving
 Derivatives of implicit functions
Active Lecturing
MID-TERM EXAM
8 Optimization problem AC (9) Active Lecturing
- Optimum vs extremum values
- Relative Maximum and Minimum: Interpretation of Problem Solving
first and second derivatives
- Optimization without constraint: single variable case,
using first and higher derivative tests
- Necessary vs. sufficient condition
- Nth derivative test

9 Exponential and Logarithmic Function (1) AC (10)

- The nature of exponential function
- Natural exponential function and the problem of Problem Solving
growth
- Logarithm and logarithmic function Active Lecturing
- Derivatives of exponential and logarithm functions
 Economic Application: Optimal timing, first and second
derivative test
o Finding growth rate, interest compounding
(discrete and continuous case), discount and
present value, and point elasticity

10- Optimization without constraint: two or more than two AC (10-11)

11 variable cases AC (11)
 Finding relative extremum Problem Solving
 First and second order condition,
 Second-Order Condition relate with Convexity- Active Lecturing
concavity
Economic applications of optimization without constraint:
two or more than two variable cases
 Two-product firm case: competitive and monopolistic
 Third-degree price discrimination
 Elasticity in price discrimination

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 12, Optimization with Equality Constraints AC (12)
13,  Effects of a constraint AC (12 &
14  Finding stationary values using Lagrange 14) Problem Solving
 Second-order conditions: Bordered Hessian and AC (14)
Bordered Determinant Active Lecturing
 Economic applications: utility maximization and
consumer demand
 Concept of Quasiconcavity and Quasiconvexity
 Economic applications: homogeneity and return to
scale, least-cost combination of inputs

Dynamic Analysis and Integral (1)

 Indefinite integral
 Definite integral
 Improper integral
 Economic applications: from marginal to total function,
finding time path of capital and capital formation
 Economic applications: finding net present value (NPV)
from different cash streaming cases

Review, Summary and Discussion

I. Faculty and Program Policy

Attendance
Faculty of Economics, University of Indonesia, and the program require minimum attendance
as eligibility requirement to take the final exam and to pass the course:
- 80% of lectures (maximum 4 absences)
- 70% of tutorial sessions (maximum 4 absences)

Examination
 Students are allowed to bring one page cheat sheet during the exam.
 Any cheating at examination (Midterm and Final Examination) will result in grade E and/or
extending the study for one semester.
 Special consideration. Students may sit special exam only under special circumstances;
the following are required:
o Students may sit special exam if hampered by illness; they need to provide official
letter or medical evidence from the hospital that states that the student should be
hospitalized. The recovery days are allowed only under statutory declaration from the
doctor.
o The hospital statement should be handed-in at the administration desk at most three
days after the exam day.
o Lecturer may give special exam only if the official letter from the Head or Deputy-head
of the program is presented

Plagiarism
Students should obey the intellectual property rights. University does not tolerate any
infringement of this rule. (See separated explanation)

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Statement of Authorship
Student should attach and sign the statement of authorship (provided by the resource center)
to every paper they produce. All group members should sign the statement. Lecturer will not
accept the paper without this attachment, or alternatively may reduce the mark given. (See
separate explanation)

Property Right: Department of Econmics FEUI/Economics Undergraduate Program