How do economics relate with the mathematics?

Question

How do economics relate with the mathematics?

Answer 1

its not core mathematics just percentages initially and simple economics equations... but as you'll progress so a little more maths comes in as the contributor said before me that is called econometrics.

Answer 2

I can think of two ways to answer this question, and both say "the bulk of economics is math."

First, there's the calculation aspect. Most of us, in our lives, use math in the classroom to get some numbers to be some other numbers, ie solving equations or figuring out solutions to certain problems. Certainly this is important in economics for the purposes of understanding data that are presented in numerical form, testing ideas based upon those data (ie, statistical analysis) and making forecasts or predictions.

But even more intrinsic to economics is the higher-level mathematics that is less about numbers and more about proofs, logic and analysis. This is the point where math is not about getting an answer but rather about understanding and describing in symbolic language the process that is going on underneath. Unless you take a third semester of calculus or a proof-based geometry or algebra course, you won't see it.

Ultimately, all economics is applied mathematics, and all of the principles in economics that seem very intuitive at the introductory level have been rigorously tested via mathematical proofs.

Take the idea of supply and demand - when you first learn it, it's a simple framework for illustrating what goes on in a market. If you ever decided to take graduate-level microeconomics, you'll learn about Walrasian Equilibrium and go through the algebra to derive from the assumptions to the conclusions.

A decent (but hard to find) primer on mathematical economics is by Adil Mouhammed (a former prof of mine at U of I). It's not as thorough as Takayama's, but it is very accessible.

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The argument that wealth can neither be created nor destroyed is absurd. Look at Nuremberg in 1946 - yes, the total matter of what was there before certainly remains after the bombs fell, but not its value. The value of the whole is greater than the sum of the value of its parts. Similarly, petroleum was of little value until its use in powering and maintaining machinery was determined.

Also, the answerer who describes quantity as a form of wealth is really off-base. Quantity is a countable unit - you have two apples, ten refrigerators, sixteen hours of gardening labor, etc. Their wealth is not determined until the goods are on the open market.

Answer 3

You know where they get the information regarding supply and demand and how they get the line.

It's all stat's and there is a special field called econometrics

Answer 4

Mathematics and economics are inversely related. The better mathematics you know, the poor you are in economics.

1.) Economists say that wealth can be created. Mathematics and Law of Conservation, the general law of every science say no. Can we add 3a and 2a? Yes. Can we subtract 2a from 3b? No. Can we add 3 kms and 2 hours? No. Think that a is wealth and b is non-wealth. According to mathematics only wealth can be added to wealth and that wealth can neither be created nor be destroyed but can be changed from one form to another.

2) Consider demand curve and supply curve. Along one axis, you are taking quantity of commodity demanded/supplied and along the other axis price is considered. Price is a ratio of two forms of wealth (money and commodity) whereas quantity demanded is a form of wealth. I donot know how logical or mathematically correct it would be to take wealth  along one axis and ratio of two forms of wealth along the other. What would be the slope of this curve? What are its units?

Never in past economists studied wealth the way chemists studied matter. This is the reason why one should be poor in maths to gain economics knowledge. Lastly, what are units of measurement of non-wealth?