Economics and Finance

Economics is the study of how people uses good and services, mainly the production and management of good and services. It is a social science where experts analyzes the production and management of goods and services.

For example, a farmer bring their fresh vegetables and you decide how much you’re willing to pay based on your needs and budget. This is a supply and demand concept in economics where if the farmer may not produce good crops due to the bad weather the supply will be less and if the people wants to buy a lot of these vegetables then it will will be not enough for everyone.

Finance is study of management of money and any type of capital assets. The various financial activities carried by individuals, businesses, or governments come under this study.

For example, companies need to manage their cash flow and make investment decisions so, they appoint financial analysts who uses various tools to decide the profitability of projects.

Both Economics and Finance are two interconnected things that are a important part of our daily lives. Economics focuses on society’s resources and finance focuses of possibilities of managing money.

Application of Mathematics in Economics and Finance: Mathematics is a core part of Economics and Finance, many concepts such as algebra, profit and loss, discounts, statistics, probability, etc. are used for Economics and Finance.

Math is highly dependent for decision making, analyzing growth or downfall, calculation of profits and loss and many other usages.

In this article, we will learn about the application of math in economy and finance along with suitable examples.