Sofia Sanchez

Universidad Santo Tomas

Economics Faculty

IMPORTANCE OF MATHEMATICS III IN THE ECONOMY

To begin with, we must take into account the importance of mathematics (In general) in
economics because both are disciplines that complement each other by highlighting the
relevant and significant role that mathematics as a utensil and means of developing in
economics a wide analysis, quantification and various models of economic phenomena,
which helps us come up with a meteorological and quantifier solution to different problems.

Mathematics III plays a very important role in the economy, because the use of matrices
facilitates the solution of economic problems in the numerical calculation part, using systems
of linear, differential and partial derivative equations, that are a tool to solve, reflect, analyze,
discuss and argue the problems that arise in real life on a daily basis ( such as wages,
probabilities, inflation and unemployment rates, prices, costs, benefits, among others).

Likewise, it is very necessary for the orderly representation of data, to model problems and
solve them. In economics, there are four types of matrices, which are important in this field,
which are: Inter-industrial transaction matrix, matrix of technical input-product and Leontief
matrix and its inverse; which play an important role when they are resolved in the economic,
industrial and business fields, in today’s life, universally.

In the economy, it is often essential to calculate and combine some costs and quantities of
products accurately; the matrices are responsible for presenting simple production processes
and production flows, to demonstrate indicators of existing interrelationships in different
economic sectors (Input-Product, where the demonstration of how the total production of an
industry is distributed is taken into account), showing an economic reality numerically.

References
https://es.scribd.com/doc/228735231/Aplicacion-de-Las-Matrices-en-La-Administracion
https://blog.elinsignia.com/2017/11/07/matrices-aplicadas-en-administracion/
https://www.uv.es/vbolos/docencia/mi/matematicas_para_la_economia_y_la_empresa.p
df
https://prezi.com/qoa4yvxqn4ja/aplicacion-de-matrices-en-administracion-de-empresas-
y-economia/