Subject Description Form

Subject Code Subject Title Credit Value Level Normal Duration Pre-requisite / Co-requisite/ Exclusion Role and Purposes

AF2617 Economics for Engineers 3 2 1-semester Exclusion: AF3901

This subject aims to provide students with fundamental concepts of economics/finance/costing and to develop students ability to analyze economic situations by application of these concepts. It also aims to explain how these concepts can be applied to affect the functioning of an engineering company and contribute to decision making in engineering operations. It provides a foundation for related higher level subjects in economics/finance. Upon completion of the subject, students will be able to:

Subject Learning Outcomes

a. understand the fundamental concepts of microeconomics, finance and costing in general, and in global business operations in particular; b. conduct analysis of economic and financial issues in real-life situations; c. assess the strategies and behaviors of firms operating under various market structures in the global economy; d. apply the budgetary planning and capital budgeting skills to appraise economic and financial issues in the context of engineering operations; and e. communicate and work effectively with others.
Introduction to Microeconomics Scarcity, Choice and Opportunity Cost; Demand, Supply and Price; Profitmaximizing Objective of a Firm; Cost and Output of a Firm; Market Structures. Engineering Economic Decisions Engineering Projects: Strategic Engineering Economic Decisions; Short-term Operational Economic Decisions. Time Value of Money and Project Evaluation Economic Equivalence and Interest Formulas; Evaluation of Engineering Projects using Methods of Present Value, Annual Worth, and Internal Rate of Return. Capital Budgeting Decision Methods of Financing Cost of Capital, and Evaluation of Investment Alternatives.

Subject Synopsis/ Indicative Syllabus

Teaching/Learning Methodology

There will be a lecture of two hours per week that will be structured to help students to understand engineering economics concepts. Besides, there will be an one-hour tutorial per week, for which students are required to present answers from tutorial questions and discuss relevant cases and examples relating to the subject.

9.2011

Assessment Methods in Alignment with Intended Learning Outcomes

Specific assessment methods/tasks

% weighting

Intended subject learning outcomes to be assessed (Please tick as appropriate) a b c d e

Continuous Assessment 1. Presentation 2. Presentation report 3. Test 4. Attendance and discussion Final Examination Total

50% 10% 15% 20% 5% 50% 100 %

To pass this subject, students are required to obtain Grade D or above in both the Continuous Assessment and Examination components. Student Study Effort Required Class contact: Lectures Tutorials 28 Hrs. 14 Hrs.

Other student study effort: Reading subject textbooks Reading subject-related newspapers and magazines Preparation for presentation and report 28 Hrs. 14 Hrs. 10 Hrs. 94 Hrs.

Total student study effort Reading List and References Recommended Textbooks

AF2617 Economics for Engineers, compiled by Hong Kong Polytechnic University, School of Accounting and Finance, Pearson Custom Publishing. Chan S., Park, Contemporary Engineering Economics, 4th edition, Pearson Education, Inc.. Michael Parkin, Economics, 9th edition, Pearson Education, Inc.. References William G. Sullivan, C. Patrick Koelling and Elin M. Wicks, Engineering Economy, 15th edition, Pearson Education, Inc..

9.2011

Gregory Mankiw, Principles of Economics, 4th edition, Dryden Press. Joseph Stiglitz and Carl E. Walsh, Principles of Microeconomics, 4th edition, W.W. Norton and Company Inc. Other Readings The Economist. Far Eastern Economic Review. Hong Kong Economic Journal. Various newspaper articles.

9.2011