What are advantages of using mathematics in modern economics, Microeconomics

Assignment Help:

What are the advantages of using mathematics in Modern Economics?

Many of the advantages of using mathematics are as follows:

a. The “language” used and the explanations of assumptions are clearer, more exact, and more precise,

b. The logical process of analysis is more rigorous and obviously sets the boundaries and limits of a statement,

c. This can provide a new result which may not be easily acquired by observation alone, and

d. This can decrease needless debates and enhance or extend existing results.

This should be remarked that, though mathematics is of critical significance in modern economics, but economics is not mathematics. Economics utilizes mathematics like a tool in order to model and analyze different economic problems. Econometrics and Statistics are used to test or analyze and measure the accuracy of our predication, and specify causalities between economic variables.


Related Discussions:- What are advantages of using mathematics in modern economics

Kaldor hicks, limitation of kaldor hicks in compensation test and welfare c...

limitation of kaldor hicks in compensation test and welfare criteria

Explain key assumptions and desired properties, Explain the key assumptions...

Explain the key assumptions and desired properties commonly used economics. Economists generally make all or some of the given key assumptions and a condition while they study

TOTAL REVENUE AVERAGE REVENUE AND MARGINAL REVENUE, CASE STUDY IN RELATION ...

CASE STUDY IN RELATION WITH TOTAL REVENUE,AVERAGE REVENUE AND MARGINAL REVENUE

How to get the answers, #. The following information applies to the market ...

#. The following information applies to the market for a particular items in the absence of a unit excise tax: Price($ per unit) Quantity Supplied Quantity Demanded 4 50

Calculate the price of a forward contract, Commodities A) It i...

Commodities A) It is well documented that commodity prices are very volatile when compared to other asset classes.  Discuss factors that cause volatility in the commod

Consider an upstream firm in russia that mines iron, Consider an upstream f...

Consider an upstream firm in Russia that mines iron ore at a total cost of $15 q , where q is the number of tons of ore. This upstream firm then ships ore to Germany for processi

Theory of inter-temporal consumption, THEORY OF INTER-TEMPORAL CONSUMPTION:...

THEORY OF INTER-TEMPORAL CONSUMPTION: In the previous two units, we have been concerned with choices among contemporaneous commodities. An important class of choices made by c

Protection of infant firms, Protection of infant firms: Infant industr...

Protection of infant firms: Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older

Modern theory of rent, what are the criticisms of modern theory of rent?

what are the criticisms of modern theory of rent?

How to do economic analysis of companies, For the purposes of economic anal...

For the purposes of economic analysis, a normal profit contains the cost of the lost opportunity of the next best option allocation of the firms resources.  In a purely competitive

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd