Economics is the social science that studies the production, distribution, exchange, and

consumption of goods and services. It examines how individuals, households, firms, and

governments make decisions and how these decisions interact with each other in the market.

Economic theories and models help to explain how the economy works, and how various

factors such as inflation, interest rates, and taxes affect economic activity. In addition,

economics also covers a wide range of topics, including microeconomics, macroeconomics,

international economics, and behavioral economics, among others.

Engineering economics, on the other hand, is a subfield of economics that specifically deals

with the economic aspects of engineering projects. It uses economic and financial principles

to evaluate and compare potential investment opportunities in engineering projects, such as

construction of a new building, development of a new product, or the implementation of a

new technology. Engineering economists use various tools, such as discounted cash flow

analysis, sensitivity analysis, and risk assessment, to make informed investment decisions.

They also consider factors such as cost, time, and technical feasibility when evaluating the

feasibility of a project.

The difference between economics and engineering economics lies in the scope and focus of

their study. While economics deals with a broad range of topics and issues, engineering

economics focuses specifically on the financial aspects of engineering projects. Engineering

economists play a critical role in the planning and implementation of engineering projects, as

they provide valuable insights into the financial viability and sustainability of the project.

They help to ensure that engineering projects are not only technically feasible, but also

economically feasible, and provide decision-makers with the information they need to make

informed investment decisions.