# Mathematical method for economists (BØK108)

Mathematical method for economists is an introductory course in the bachelor program. The course introduces mathematical methods that are useful for analytical thinking. It will help students develop problem-solving strategies that are applicable in several economic topics, for example in finance, business administration and economics.

*Course description for study year 2024-2025. Please note that changes may occur.*

## Course code

BØK108

## Version

1

## Credits (ECTS)

10

## Semester tution start

Autumn

## Number of semesters

1

## Exam semester

Autumn

## Language of instruction

Norwegian

**Time table**

## Content

## Learning outcome

*Knowledge*

Upon completing this course, students will have knowledge of:

- Mathematical methods needed to answer various financial questions
- Basic mathematics such as algebra, fractions, percentages, powers, and systems of equations
- Different functional forms (linear, quadratic, logarithmic, exponential, etc.)
- How functions can be analyzed, including what it means to look at the function's limit values and what you achieve by deriving functions
- Marginal considerations on economic issues
- Functions with several variables, and how to optimize such functions
- The sum sign, sequences, interest rates calculations, different types of loans, present value calculations, and annuities

*Skills*

Upon completing this course, students will be able to:

- Solve basic mathematical problems
- Calculate different functional forms
- Analyze various functions, including showing asymptotes, zero points, intersections, and derivative functions to find extreme points (extrema) and turning points
- Use marginal considerations to analyze various economic issues and demonstrate, for example, cost optimizing quantity, profit optimizing quantity, and utility-maximizing quantity
- Partially derive functions with several variables, classify stationary points and optimize functions with constraints
- Calculate the sum sign, sequences, interest rates, different types of loans, present values, and annuities in various financial contexts

## Required prerequisite knowledge

## Recommended prerequisites

This course has a pre-course lasting two weeks, organized in the week before the "fadderuke" and during the "fadderuke" week. There is a strong recommendation that anyone needing a refresher in mathematics from high school participate in the preliminary course, and there is an expectation that those without R- or S-mathematics from high school complete the pre-course.

It is a significant advantage to have R- or S-mathematics from high school, but with the pre-course and an extensive guidance program throughout the semester, it is designed so that those with P-mathematics from high school can also complete the subject.

## Exam

Form of assessment | Weight | Duration | Marks | Aid |
---|---|---|---|---|

Written exam | 1/1 | 5 Hours | Letter grades | One hand written A4-page with notes, Valid calculator, |

## Coursework requirements

## Course teacher(s)

## Course teacher:

William Gilje Gjedrem## Course coordinator:

William Gilje Gjedrem## Study Program Director:

Tarjei Mandt Larsen## Method of work

Learning in the course occurs through a combination of lectures, problem-solving seminars, and independent work. There will be five weekly lecture hours. In addition, problem-solving seminars and guidance hours with student assistants are offered at different times during the week. The individual work consists of solving problems from three comprehensive problem sets. Mathematical methods require that the students work extensively with problem-solving to internalize the methods that are taught.

Lecture videos on all the topics in the course will also be made available.

## Overlapping courses

Course | Reduction (SP) |
---|---|

Mathematical analysis for economy and social science (BØK135_3) | 10 |

Mathematical analysis for economists (BØK135_2) | 10 |

Mathematical analysis for economists (BØK135_1) | 10 |

Mathematical analysis for economists, Mathematical analysis for economy and social science ( BØK135_2 BØK135_3 ) | 20 |