Practice question · Match the pairs
Match each concept to its mathematical tool.
- Elasticity
- Returns to scale
- Leontief inverse
- Envelope theorem
- Direct effect only at the optimum
- Derivative times price-quantity ratio
- Sum of exponents in Cobb-Douglas
- : total output multiplier
Hints
- Each concept corresponds to one mathematical operation.
- Responsiveness is a ratio of proportional changes.
Show the answer
- Elasticity → Derivative times price-quantity ratio
- Returns to scale → Sum of exponents in Cobb-Douglas
- Leontief inverse → : total output multiplier
- Envelope theorem → Direct effect only at the optimum
Why
Each economic concept maps to a precise mathematical operation, economics is applied mathematics.
Practise Economic Applications
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