This subject provides the quantitative instruments that are needed to pose and analyze economic problems with the aid of a formal model.
In working toward the above goal the student will acquire the following competences and skills.
Regarding the contents of the course, the student will be able to:
- Extend the concepts of one variable functions to several variables.
- Understand the basic tools of calculus with several variables.
- Pose and solve static optimization problems.
- Apply all the above concepts to economic problems.
We classify the competences in two groups: specific competences and generic competences or skills.
Regarding the specific competences, the student will be able to:
- Solve linear systems of equations and determine the number of parameters in the solution.
- Understand the fundamental concepts involved in the calculus of functions of several variables: differentiability, chain rule, implicit differentiation.
- Describe the qualitative properties of the functions of several variables, such as growth, concavity and convexity.
- Approximate a function of several variables using the Taylor polynomial.
- Pose and solve static optimization problems, with and without restrictions using the first and second order conditions.
Pertaining the general competences or skills, in the class the student will develop:
- The ability to address economic problems by means of abstract models.
- The ability to solve the above formal models.
- The ability to interpret and classify the different solutions and apply the appropriate conclusions to social contexts.
- The ability to use the basic tools that are need in the modern analysis of economic problems.
Through out the course, the student should maintain:
- An inquisitive attitude when developing logical reasoning, being able to tell apart a proof from an example.
- An entrepreneurial and imaginative attitude towards the cases studied.
- A critical attitude towards the formal results and their applicability in social contexts.