Rationalize the need of study of economics in engineering
summary - Economics is the study of human choices, guiding rational decision-making in engineering, known as engineering economics. For example, when deciding on projects like constructing roads, economic knowledge is crucial for informed and efficient decision-making.
The word economics might be perplexing to completely grasp. To understand it better, we need to know what economics is not about. Economics is not about the study of money or getting rich, although understanding it might help with that. It is not the study of the stock market and not primarily about forecasting what will happen to the economy in the future. However, economics is the study of people and choices.
How much should I spend on a new laptop? Which job or career path should I choose? Which route should I take to save fuel? These are some day-to-day choices we make. Economics is about weighing different choices or alternatives to conclude with better and efficient choices. Engineers also make decisions, and economics can be a powerful tool for them.
Economic decision-making for engineering systems is called engineering economics. It is not restricted to engineering projects and systems only; the scope lies wide, including the study of industrial economics and financial factors that influence the industry. Engineers are the ones who are best familiar with the technicality and production of the product. Therefore, they have in-depth knowledge to make decisive decisions. In modern industry, engineers are not only limited to the technical work area; instead, they are exposed to financial project analysis, which requires rational decision-making.
Knowledge of economics can help engineers with formulating, estimating, and evaluating their choices rationally. For instance, if a decision is to be made on whether a four-lane road should be constructed or not, an engineer should be able to produce a rational decision by comparing relative benefits. Constructing four-lane roads may reduce traffic accident rates and congestion, but, on the other hand, it is also expected to lower property values in the immediate neighborhood of the highway.
The critical decision-making can be aided by the knowledge of economics. It is termed as engineering economic decision and has many aspects to it. Lack of knowledge in economics can result in unsustainable development. For example, if an engineer is called to find a solution for cleaning/purifying the contaminated river, then he/she will suggest a distillation process. To their technical knowledge, the distillation process is by far the most effective way of purifying water. However, they have no idea that the distillation process on a larger scale is highly uneconomical, as it requires heavy use of resources. While solving a problem, engineers have to find a solution that is both economically and physically efficient at the same time. In a nutshell, economics has immense significance in the career of an engineer, so knowledge of economics must be learned by engineers in all fields.
Rationalize the need of study of economics in engineering
summary - Economics is the study of human choices, guiding rational decision-making in engineering, known as engineering economics. For example, when deciding on projects like constructing roads, economic knowledge is crucial for informed and efficient decision-making.
The word economics might be perplexing to completely grasp. To understand it better, we need to know what economics is not about. Economics is not about the study of money or getting rich, although understanding it might help with that. It is not the study of the stock market and not primarily about forecasting what will happen to the economy in the future. However, economics is the study of people and choices.
How much should I spend on a new laptop? Which job or career path should I choose? Which route should I take to save fuel? These are some day-to-day choices we make. Economics is about weighing different choices or alternatives to conclude with better and efficient choices. Engineers also make decisions, and economics can be a powerful tool for them.
Economic decision-making for engineering systems is called engineering economics. It is not restricted to engineering projects and systems only; the scope lies wide, including the study of industrial economics and financial factors that influence the industry. Engineers are the ones who are best familiar with the technicality and production of the product. Therefore, they have in-depth knowledge to make decisive decisions. In modern industry, engineers are not only limited to the technical work area; instead, they are exposed to financial project analysis, which requires rational decision-making.
Knowledge of economics can help engineers with formulating, estimating, and evaluating their choices rationally. For instance, if a decision is to be made on whether a four-lane road should be constructed or not, an engineer should be able to produce a rational decision by comparing relative benefits. Constructing four-lane roads may reduce traffic accident rates and congestion, but, on the other hand, it is also expected to lower property values in the immediate neighborhood of the highway.
The critical decision-making can be aided by the knowledge of economics. It is termed as engineering economic decision and has many aspects to it. Lack of knowledge in economics can result in unsustainable development. For example, if an engineer is called to find a solution for cleaning/purifying the contaminated river, then he/she will suggest a distillation process. To their technical knowledge, the distillation process is by far the most effective way of purifying water. However, they have no idea that the distillation process on a larger scale is highly uneconomical, as it requires heavy use of resources. While solving a problem, engineers have to find a solution that is both economically and physically efficient at the same time. In a nutshell, economics has immense significance in the career of an engineer, so knowledge of economics must be learned by engineers in all fields.
Rationalize the need of study of economics in engineering
summary - Economics is the study of human choices, guiding rational decision-making in engineering, known as engineering economics. For example, when deciding on projects like constructing roads, economic knowledge is crucial for informed and efficient decision-making.
The word economics might be perplexing to completely grasp. To understand it better, we need to know what economics is not about. Economics is not about the study of money or getting rich, although understanding it might help with that. It is not the study of the stock market and not primarily about forecasting what will happen to the economy in the future. However, economics is the study of people and choices.
How much should I spend on a new laptop? Which job or career path should I choose? Which route should I take to save fuel? These are some day-to-day choices we make. Economics is about weighing different choices or alternatives to conclude with better and efficient choices. Engineers also make decisions, and economics can be a powerful tool for them.
Economic decision-making for engineering systems is called engineering economics. It is not restricted to engineering projects and systems only; the scope lies wide, including the study of industrial economics and financial factors that influence the industry. Engineers are the ones who are best familiar with the technicality and production of the product. Therefore, they have in-depth knowledge to make decisive decisions. In modern industry, engineers are not only limited to the technical work area; instead, they are exposed to financial project analysis, which requires rational decision-making.
Knowledge of economics can help engineers with formulating, estimating, and evaluating their choices rationally. For instance, if a decision is to be made on whether a four-lane road should be constructed or not, an engineer should be able to produce a rational decision by comparing relative benefits. Constructing four-lane roads may reduce traffic accident rates and congestion, but, on the other hand, it is also expected to lower property values in the immediate neighborhood of the highway.
The critical decision-making can be aided by the knowledge of economics. It is termed as engineering economic decision and has many aspects to it. Lack of knowledge in economics can result in unsustainable development. For example, if an engineer is called to find a solution for cleaning/purifying the contaminated river, then he/she will suggest a distillation process. To their technical knowledge, the distillation process is by far the most effective way of purifying water. However, they have no idea that the distillation process on a larger scale is highly uneconomical, as it requires heavy use of resources. While solving a problem, engineers have to find a solution that is both economically and physically efficient at the same time. In a nutshell, economics has immense significance in the career of an engineer, so knowledge of economics must be learned by engineers in all fields.
