Mathematics for Pre-MSc

Academic year 2018/2019

1 Introduction

Mathematical techniques are useful for the analysis of economic models. This course
starts with a repetition of all kinds of algebraic rules. Next, functions of one variable
will be treated. We will examine the properties of these functions and it will be
shown how one can determine the derivative and integral and use them in some
economic applications. Upon completion of the course the student is able to:
 Write logical mathematical argumentation;
 Use the key concepts and techniques from algebra;
 Analyze the properties of functions of one variable;
 Solve optimization problems for functions of one variable;
 Differentiate simple functions of several variables;
 Use the basic rules of integral calculus;
 Apply basic mathematical tools to simple economic problems.

2 Course material

We will use the fifth edition of ‘Essential Mathematics for Economic Analysis’ by K.
Sydsaeter and P.J. Hammond (Pearson Education, ISBN: 9780273760689). The use of
the fourth edition is allowed too. The course covers (roughly) chapters 2-9 and 11 of
the fifth edition.
In the week schedule at the end of this document the precise contents are described
for both editions. On Nestor (https://nestor.rug.nl) one can find under ‘Course
documents’ a student manual for the fourth edition. As soon as we can get hold of
the student manual for the fifth edition, we will publish it there as well.
In this manual comprehensive computations are presented for selected exercises.
The final answers to (almost) all exercises are given at the back of the book.

3 Organization

The course consists of lectures and tutorials. Lectures are given on Mondays. The
topics of each week are provided in the detailed weekly schedule.
Tutorials are given at distinct moments in time, depending on the group one is in. At
the beginning of the course, group compositions will be published on Nestor. During
tutorials students can work on the exercises and/or ask questions. Also a number of
selected exercises will be discussed on the blackboard. Due to time restrictions, it
may not be possible to discuss all exercises.
As is the case for all academic courses, students are expected to spend considerable
amounts of time on self-study. Since this is a 5 EC course, and there are 30 hours of
class in total, students are supposed to work at home for 5  28 - 30 = 110 hours.
This boils down to almost 16 hours of self-study each week.

4 Exams

At the end of block 1.1 a final exam takes place. This is a written exam with open
questions. The minimum requirement to pass the exam is grade 5.5 (on a scale from
1 to 10). For students who do not pass the exam, a re-sit is scheduled after block 1.2.
At the moment of writing the two exams are scheduled on November 3 2017 and
January 26 2018. Check the schedule on Nestor for the time and the location and
more importantly, for last minute changes!

During the course, a test exam will become available on Nestor.

5 Use of a calculator at the exam

During exams, only calculators with a one-line display may be used. This means that
graphical calculators are not permitted. This also excludes calculators that may not
look graphical at first sight like the Casio fx9… series.
You are expected to solve the exercises without a calculator.

6 Week schedule (please see the next two pages)

Please take notice of the following legend.

Column 3 (Description): In this column, the content of each week is given.

Column 4 (Examples to read):
Column 5 (Selected exercises):
During the lectures, emphasis is laid on the topics
that are underlined and printed in bold.
These examples, notes, theorems, etcetera
should be read before the lecture.
The exercises that are underlined and printed in
bold are discussed during tutorials (if time
permits). Exercises marked with an * are solved in
the Student Manual.

If there is no colour marking, then things are identical in the editions 5 and 4. A
green marker indicates edition 5 and a yellow marker indicates edition 4.
Week Lecture Description Things to read Selected exercises
36 Ch 2: §1-§7 §1: The Real Numbers §1: - §1: -
Ch 1: §1-§7 §2: Integer Powers §2: Ex. 4 (3) §2: 2bc 4efgh 5hi 7 13
Algebra §2: 2bc 5 6hi 8 14
§3: Rules of algebra §3: Ex. 1, 4, 5 §3: 4* 5 7b 8 10*
§3: 5* 6 7b 9 13*
§4: Fractions §4: Ex. 1, 2 §4: 5cd*, 6de*, 8ef*
§5: Fractional Powers §5: Ex. 3, 4c §5: 3, 5be*, 11* (12*)
§6: Inequalities §6: Ex. 1, 2, 3, 4 §6: 3adf* 4djl* 7
§6: 4adf* 5agi* 7
§7: Intervals and Absolute §7: Ex. 1, 2 §7: 2, 3
Values

Ch 3: §1-§3, §6 §1:Solving Equations §1: Ex. 2, 4 §1: 2 (2cdef), 3ab*, 5c*

Ch 2: §1-§4 §2: Equations and Their §2: Ex. 1 §2: 2abd*, 3, 4b*, 5a
Equations Parameters
§3: Quadratic Equations §3: Ex. 3, 4 §3: 4, 6
§6 (§4): Linear Equations in §4: Ex. 1 §4: 1b, 2, 4abc*
Two Unknowns

37 Ch 4: §1-§6, §1 Introduction §1: - §1: -

§8, §9 §2 Basic Definitions §2: Ex. 2, 4, 5 §2: 1b*, 4, 6b, 13c*, 14
Functions of §3 Graphs of Functions §3: ‘Some … §3: 2
One Variable Graphs’
§4 Linear Functions §4: Ex. 4, 5b, 7 §4: 3, 7, 10*
§5 Linear Models §5: Ex. 2, 4 §5: 2, 3
§6 Quadratic Functions §6: Ex. 1 §6: 3abc, 6, 7
§7 Polynomial Functions §7: - §7: -
(def. only)
§8 Power Functions §8: - §8: 3, 4*, 5
§9 Exponential Functions §9: Ex. 1, 3, 4 §9: 3, 8

38 Ch 4: §10 §10: Logarithmic Functions §10: Ex. 1, 3, 4 §10: 1cd, 2, 3abc*, 4*+5* (4*), 6eg
Read: ‘Rules …’ and ‘The (6ad), 7
function g(x) = ln x’

Ch 5: §1 - §3 §1: Shifting Graphs §1: Ex. 2 §1: 2

Properties of §2: New Functions from Old §2: Ex. 2 §2: 3, 4
Functions §3: Inverse Functions §3: Read all §3: 1,9*,10ab*

Ch 6: §1 - §6 §1: Slopes of Curves §1: - §1: -

Differentiation §2: Tangents and §2: “Definition of §2: 2, 5 (4)
derivatives. the tangent”
§3: Increasing and §3: Ex. 1 §3: 1
Decreasing Functions
§4: Rates of Change §4: Ex. 1, 3 §4: 1, 6
§5: A Dash of Limits* §5: Ex. 4 §5: 3, 5abd*
§6: Simple Rules of §6: Ex. 1ace, 2b, §6: 3
Differentiation 3bcd
Week Lecture Description Things to read Selected exercises
39 Ch 6: §7- § 11 §7: Sums, Products and §7: Ex. 2, 3, 6 §7: 2a, 3*, 6cd*, 7b*, 9b*
Quotients
§8: Chain Rule §8: Ex. 1b, 2bc, 4 §8: 3*, 5, 6, 9, 12dfg
§9: Higher-Order Derivative §9: Ex. 2, 3, 4, 6 §9: 1c, 2, 4, 5, 6, 7b (7a)
§10: Exponential Functions §10: Ex. 2bc, 3bc, §10: 1, 2, 3cd, 4*, 6ac
§11: Logarithmic Functions 4 §11: 1ad, 2ac, 3ad*, 5*, 6ab*
§11: Ex. 1, 2bc, 3b,
5
41 Ch 7: §7 §7: Elasticities §7: Ex. 1, 2, 3 §7: 1, 4, 5, 9abc*

Ch 11: §1 - §2, §1: Functions of Two §1: Ex. 2, 3, 5 §1: 1, 4, 6ab

§8 Variables
Functions of §2: Partial Derivatives with §2: Ex. 1, 2, 4, 5 §2: 2, 3, 4ab, 5ab*, 6, 8
many Variables two variables
§8: Partial Elasticities §8: Ex. 1, 2 §8: 1ab, 4*

42 Ch 8: §1 - §5 §1: Introduction §1: Ex. 1, Thm. §1: 1abc (1)

Single-Variable 8.1.1
Optimization §2: Simple Tests for §2: Thm. 8.2.1, Ex. §2: 2*, 4, 5, 6, 8ac*
Extreme Points 2, Thm. 8.2.2, Ex. 3
§3: Economic Examples §3: Ex. 2 §3: 2*, 3
§4: The Extreme-Value §4: Thm. 8.4.1, Ex.
Theorem 1, 2 §4: 1, 2bc*, 3, 8
§5: Further Economic Exs. §5: Ex. 1,3 §5: 1, 6

43 Ch 8: §6 - §7 §6: Local Extreme Points
§7: Inflection Points,
Concavity and Convexity
§6: Thm. 8.6.1, Ex. §6: 1, 2bc*, 3*, 6
1, 2, Thm. 8.6.2,
Ex. 3, 4.
§7: Thm. 8.7.1, §7: 1, 2ac, 3bc*, 6
Ex. 1, 2, 3, 4

Ch 9: §1-§4 §1: Indefinite Integrals §1: Ex. 1, 2, 3, 4, 5 §1 1 3cd* 4a* 8 9c

Integration §1 1+2 4cd* 5a* 9 11
§2: Area and Definite §2: Ex. 1, 2, 3, 4 §2: 3, 4, 5bef*, 7
Integrals
§3: Properties of Definite §3: Read §3: 1bd ,6* (5*), 10 (8)
Integrals everything
§4: Economic Applications §4: Ex. 1, 2, 3 §4: 3, 4, 5, 6