ENGR 3360U – Engineering Economics

Aspects of theoretical and applied economics relevant to engineers, including an introduction to fundamental principles of micro and macroeconomics. Microeconomics topics include scarcity, opportunity cost, diminishing returns, elasticity, industrial organization, economies of scale and concentration. Macroeconomics topics include unemployment, inflation, economic growth, the multiplier, equilibrium, fiscal policy and monetary policy. The principle of money and banking are introduced along with the role of the Bank of Canada. Applied economics topics covered include cost concepts, time value of money, comparison of alternatives, depreciation, tax considerations, economic analysis of projects, breakeven, sensitivity and risk, and decision models. Other topics covered include: economic decision analysis applied to private and public sector capital projects, discounted cash flow methods, lease analysis, replacement decisions, inflation impacts and public sector project analysis.
Credit hours: 3
Lecture hours: 3