The third chapter of our economics learning course is “Concepts of Mathematical Economics.” In this article, we’ll learn the 20 most important “concepts of mathematical economics” questions and their answers.
These simple questions and answers will help you quickly understand the fundamental concepts of mathematical economics, including what variables are, as well as features and different types of variables, constants, coefficients, functions, different types of functions, slopes, intersections, and much more.
By reading this post, you can quickly prepare for economics courses as well as other competitive exams such as Vivas, job interviews, and school and college exams.
So let’s get started.
Concepts of Mathematical Economics Questions and Answers
The 20 most important “concepts of mathematical economics” questions and answers are as follows:
Question 01: What is a variable?
Answer: A variable is a thought or thing whose size can be written as a number, or measured quantitatively. Variables are so named because they vary; that is, they can have a wide range of values.
Variables in the economy are – price level, profit, income-expenditure, national income, consumption, investment, import, export, etc.
Question 02: What are the features of variables?
Answer: The key features of variables are as follows:
- Variables are variable and dynamic;
- It can accept and discard any value;
- It is expressed by symbols X, Y, and Z.
- Variables cannot be expressed by any real number.
- In terms of dependence, some variables behave independently, and some variables behave dependently.
Question 03: What is the classification of variables?
Answer: In terms of dependence, variables can be divided into two categories. Namely:
- Independent variable
- Subject or dependent variable
Question 04: What is an independent variable?
Answer: An independent variable is one of two or more related variables in an equation that can take any value on its own without relying on the value of the other variable.
Question 05: What is a dependent variable?
Answer: A dependent variable is one of two or more related variables in an equation that cannot take on any value on its own and is dependent on the value of the other variable.
Question 06: What is a constant?
Answer: A quantity whose value does not change or remains constant in a mathematical process is called a constant. Since the value of a constant is fixed, it can be expressed as a real number, e.g., 1, 2, 3, etc. Again, constants can be denoted by specific symbols.
Question 07: What are the features of a constant?
Answer: The important features of a constant are as follows:
- constant invariant;
- Since the value of the constant is fixed, it is not dynamic;
- Constants are expressed by the real numbers 1, 2, 3 or a,b, c.
- Constants have no variation.
Question 08: What is the difference between a variable and a constant?
Answer: The differences between a variable and a constant are as follows:
| Sl No | Variable | Constant |
| 1 | A variable is a quantity whose value changes in an arithmetic operation. | A constant is a quantity whose value does not change. |
| 2 | Variables can take or leave any value. | Constants are unable to accept or leave any value. |
| 3 | There are different types of variables. | Constants do not have types. |
| 4 | Variables are usually denoted by the symbols X, Y, and Z. | The constants are denoted by the symbols a, b, and c. |
| 5 | Variables cannot be expressed by real numbers. | Constants can be expressed as real numbers. |
| 6 | There are different types of variables. | Constants do not have types. |
| 7 | The study of the dependent relationship between at least two variables. | The presence of a constant is not mandatory for any relative. |
Question 09: What is a co-efficient?
Answer: A coefficient is a type of constant. A constant multiplied by a variable is called the coefficient of the corresponding variable. Eg., 2X, where X is the variable and 2 is the coefficient.
Question 10: What is a parameter?
Answer: In mathematical representation, constants whose value is fixed but sometimes considered to be variable are called parameters.
Question 11: What is a function?
Answer: A mathematical expression of the relationship between one or more independent variables and dependent variables is called a function. In other words, the function shows how two or more variables relate to each other and how the value of the dependent variable can be found given the value of the independent variable.
Question 12: What is the classification of function?
Answer: The classification of function is as follows:
According to the number of variables:
- Univariate function
- Multivariate function
According to the nature of the variables:
- Linear functions
- Quadratic functions
- Polynomial functions
- Rational functions
- Cubic functions
- Modulus function
- Constant function
Question 13: What are univariate and multivariate functions?
Answer:
Univariate function: Univariate functions are those that only have one independent variable.
Multivariate function: Multivariate functions are those that have multiple independent variables.
Question 14: What is a linear function?
Answer: A linear function is a polynomial function with a first-degree equation. A linear function has a straight-line graph and a real number as its domain and range.
The general form of a linear function is f(x) = a + b x.
Here,
b represents the slope of the function, and
a represents the vertical intercept.
Question 15: What is a quadratic function?
Answer: A quadratic function has a graph in the shape of a curve and a second-degree quadratic equation.
The quadratic function’s general form is f(x) = ax2 + bx + c.
where
a ≠ 0
a, b, and c are constants, and
x is a variable.
Question 16: What is a cubic function?
Answer: An equation of degree three is associated with a cubic function.
A cubic function’s general formula is f(x) = ax3 + bx2 + cx + d.
where
a ≠ 0
a, b, c, and d are real numbers and
x is a variable.
Question 17: What are the features of a function?
Answer: The important features of a function are as follows:
- The function has at least two variables;
- A dependent relationship exists between the variables present in the function;
- This dependent relationship is expressed mathematically;
- A relationship has only one dependent variable and one or more independent variables.
Question 18: What is a graph?
Answer: In the function, there is a mathematical relationship between the variables that are independent and those that are dependent. The graph is a geometric shape that shows how these two variables are related to each other.
Question 19: What is a slope?
Answer: The slope is the ratio of the change in the dependent variable to the change in the independent variable. So the slope is the ratio of changes in the variables on the X-axis and the Y-axis.
Question 20: What is an intersection?
Answer: A point where a line intersects the X axis is called the X intersection, and the point where it intersects the Y axis is called the Y intersection.
I hope you have a good understanding of the “Concepts of Mathematical Economics” chapter by the end of this post.
If you read these 20 important “Concepts of Mathematical Economics” questions and answers on a regular basis, you will gain a better understanding of the chapter.
Don’t forget to leave a comment for us if you have any questions or if you would like to find out more information.
You can also read:
- Introduction to Economics Questions and Answers [With PDF]
- Important Concepts of Economics Questions and Answers [With PDF]
- Theory of Consumer Behavior Questions and Answers [With PDF]
