ECO310:ECONOMICS FOR ENGINEERS

L:3

T:0

P:0

Credits:3

Course Objectives:

Ability to understand the basic concepts of economics in engineering.

Ability to analyze and appreciate the economics rationale for decision making.

To hone the skill of understanding economic environment for achieving optimum solution.

Unit I
Introduction : Economic and Static concept of efficiency, Concepts of demand, Law
of demand, Determinants and shift in demand, Exceptions to the law of demand,
Price elasticity of demand, Income elasticity of demand, Cross elasticity of demand,
Law of supply, Factors shifting supply curve, Analysis of changes in market
equilibrium, Indifference curves, Budget line
Unit II
Macroeconomics : Circular flow of income, Meaning of national income, Concepts of
national income, Methods and problems in measuring national income, Concepts of
aggregate demand and aggregate supply, Meaning of inflation, Types and measures
to control inflation
Unit III
Market structures : Meaning of perfect competition, Features of perfect
competition, Price determination under perfect competition, Meaning of monopoly,
Features of monopoly, Price determination under monopoly, Types and sources of
monopoly, Meaning and features of monopolistic competition, Price determination
under monopolistic competition, Meaning and types of oligopoly, Characteristics of
oligopoly
Demand forecasting : Characteristics of forecasts, Steps to forecasting, Forecasting
methods, Seasonal adjustments, Forecasting performance measures
Unit IV
Project management : Features of a project, Types of projects, Project appraisal,
Project structure, Project scheduling through PERT/CPM
Time value of money : Present worth analysis, Future worth analysis, Annual cash
flow analysis, Rate of return analysis, Continuous compounding, Normal and effective
interest rate
Unit V
Project evaluation : Determining minimum attractive rate of return, Payback period
method, Introduction to benefit-cost ratio
Depreciation : Causes, Need of depreciation, Terminologies in depreciation,
Depreciation methods
Decision making : Types of decision making environments, Decision tree analysis,
Multiple criteria decision making
Unit VI
Capital budgeting : Capital financing and allocation functions, Sources of capital
funds, Capital asset pricing model, Weighted average cost of capital, Leasing
decisions, Capital allocation
Inventory control : Objectives of inventory control, Functions of inventory,
Understocking and overstocking of inventory, Analysis of inventory, Costs involved in
inventory, Continuous and periodic review systems, Economic order quantity models,
Reorder point, Order quantity for variable demand
Text Books:

Page:1/2

Print Date : 12/30/2014 12:12:42 PM

Text Books:

1. Fundamentals of Engineering Economics by Pravin Kumar, WILEY, 1st Edition,

(2012)

References:
1. MANAGERIAL ECONOMICS by VANITA AGGARWAL, PEARSON, 1st Edition, (2013)

2. Project Management by Nagarajan K, NEW AGE INTERNATIONAL PUBLISHER

LIMITED, 6th Edition, (2012)

Page:2/2

Print Date : 12/30/2014 12:12:42 PM