Name: MARY GRACE M.

LUCERO Date: 29/08/2002

Course/Year and Section: BSME-3B

ECON 313

Assignment #1

Answer the following questions, using your own words and based on your understanding about the
lessons.

1. What is Engineering Economics?

• The engineering economics is concerned the systematic evaluation of the benefits and
costs of projects involving engineering design and analysis. Engineering economics
quantifies the benefits and costs associating with engineering projects to determine if
they save enough money to warrant their capital investments.

2. What is the importance of studying Engineering Economics?

• Having the knowledge of economics is a very important aspect to every engineer.
Engineering economics poses numerous benefits because it allows those in industry to
make strategic decisions for their companies. While macroeconomic and financial
competencies are key for business operations, engineering economics further provides a
mechanism for decision-making.

3. Why do you think engineers need to have some knowledge in economics?

• Economics will allow the engineer to make better, more well-informed choices in
his/her everyday life, whether the choice is about spending versus saving (i.e., how
much of one’s monthly paycheck one should save), or having decided that first question,
what to spend on or how to allocate one’s savings between different investment/asset
options. Learning Economics is also a basic civic literacy requirement. You cannot
effectively participate in a society and its politics without some knowledge of
Economics.