Study

Computing

Engineering Economics 1 (T)

  • Class 30
  • Practice 0
  • Independent work 30
Total 60

Course title

Engineering Economics 1 (T)

Lecture type

Elective

Course code

183404

Semester

5

ECTS

2

Lecturers and associates

Course objectives

Economy definition; Microeconomy nad Macreoconomy; Microeconomic Concepts: scarcity, resources, opportunity costs; Normative and Positive Economy; Factors of Production; The Production Possibilities Curve.
Suply; Demand; Demand, Suply, and Equlibrium.
Curves of Demand and Supply - Shifts; Government Intervention in Market Prices: Price Floors and Price Ceilings; Externalities and public goods; Market.
Definition - A Measure of Response; The Price Elasticity of Demand; Responsiveness of Demand to Other Factors; Income Elasticity of Demand; Cross Price Elasticity and Types of Goods; Price Elasticity of Supply.
Introduction to measures: total, average, marginal; Concepts: Net Benefit, Marginal Benefit, Marginal Cost; marginal decision rule; Using Marginal Benefit and Marginal Cost Curves to Find Net Benefits.
Utility Theory; Utility Maximization and Demand; Indifference Curves; Budget line; Indifference Curves and Budget line: Consume Choice.
Factors of Production; Production Function.
Midterm exam.
Production Choices and Costs: The Short Run; Production Choices and Costs: The Long Run.
Perfect competition: A Model; Output Determination in the Short Run; Perfect Competition in the Long Run; The Nature of Monopoly; The Monopoly Model; Assessing Monopoly.
Monopolistic Competition: Competition Among Many; Advertising and Price Discrimination; Oligopoly: Competition Among the Few; Game Theory.
Interest- the cost of money; Cash flows; Inflation and its measures; Project screening methods; Financial profitability.
Reliability and risk as part of performace and life; Reliability and risk theory and concepts; Failure models and mechanisms; Risk assessment methods; Event tree method; Probabilistic safety assessment method.
Recruitment process in a large company; Importance of career planning; Narrow specialization or orientation to management; Importance of social skills for advancement; Career in SMEs; Creating the first business plan; Realistic assessment of the necessary investments.
Final exam.

Required reading

Grupa autora (2019.), Inženjerska ekonomika 1 - nastavni materijali, FER
Dubravko Sabolić (2017.), UVOD U MIKROEKONOMIKU – odabrane teme,
Paul A. Samuelson, William D. Nordhaus (2011.), Ekonomija, McGraw-Hill / Mate d.o.o.
by Pindyck, Robert S; Rubinfeld, Daniel L [aut]; Suman, Sanja [trl]. (2005.), Mikroekonomija., Mate

Minimal learning outcomes

  • Explain the basic concepts of economics
  • Explain the functioning of competitive markets on the basis of the supply and demand law
  • Explain consumer behavior
  • Explain and apply the concept of elasticity in modeling of supply and demand
  • Identify the key factors in making business decisions
  • Calculate specific measures related to production and costs
  • Distinguish market structures that affect the behavior of enterprises
  • Calculate the cost effectiveness of different investment options by applying simple methods to assess profitability
  • Identify the risks associated with investments and participation in the market
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