What is Engineering Economics about? Engineering economics is a subset of the subject Economics. Time value of money is central to most engineering economic analyses. Do nothing alternative’. The opportunity cost of making one choice over another must also be considered.
Non-economic factors to be considered-called Attributes. Costs as well as revenues are considered, for each alternative. Inflation,uncertainty,taxes,tax credits, accounting, cost estimations, capital financing, depreciation of assets etc. Engineering industrial economics is an important part of industrial or business economics. So basically we are talking of interlinking of economies.
Definition of Growth • Growth is the increase in national output within an economy (country or region) during a time period – usually 12 months. • (National output is the sum of all goods and services produced in a country during a given period of time = GDP or GNP) • This is put in percentage terms to show the annual percentage increase in output. • It is measured in money terms and usually adjusted for inflation to show real growth.
• • • • • Definition of Development The concept of development is a qualitative variable and thus far broader than Economic Growth. It is about having choices: economic and political choices; choice of schools, healthcare; choice of government. It is about having opportunities: for education, work, public office, private ownership, leisure. It is about freedom: freedom of opinion, speech etc. More Developed Countries (MDC) vs. LDC