Engineering Economics 1

Data is displayed for academic year: 2023./2024.

Associate Lecturers

Course Description

Definitions and basic terms of economics and microeconomics. The Production Possibilities Curve. Demand and Supply models. Equilibrium. Demand and Supply shifts. The elasticity of supply and demand. Markets. Utility maximization. Consumer behavior. Production and costs. Market structures: monopoly, perfect competition, monopolistic competition, oligopoly, game theory. The assessment of investment projects The risk and uncertainty.

Study Programmes

University undergraduate
Transversal Courses (3. semester) (5. semester)
Transversal Courses (3. semester) (5. semester)
[FER2-HR] Computing - study
(3. semester)
[FER2-HR] Electrical Engineering and Information Technology - study
(3. semester)

Learning Outcomes

  1. Explain the basic concepts of economics
  2. Explain the functioning of competitive markets on the basis of the supply and demand law
  3. Explain consumer behavior
  4. Explain and apply the concept of elasticity in modeling of supply and demand
  5. Identify the key factors in making business decisions
  6. Calculate specific measures related to production and costs
  7. Distinguish market structures that affect the behavior of enterprises
  8. Calculate the cost effectiveness of different investment options by applying simple methods to assess profitability
  9. Identify the risks associated with investments and participation in the market

Forms of Teaching

Lectures

Lectures are designed as 13 thematic units that are logically continue each other. Following the lectures, students are introduced to the problems of the basics of economics, markets and market participants, making business decisions, and business risks.

Partial e-learning

Using the Moodle eLearning system, compulsory reading and supplementary reading literature, video clips, solved computational and self-test tasks are made available.

Independent assignments

Using the Moodle eLearning system, students have at their disposal solved computational tasks and tasks to test their own knowledge.

Grading Method

Continuous Assessment Exam
Type Threshold Percent of Grade Threshold Percent of Grade
Homeworks 0 % 20 % 0 % 20 %
Class participation 0 % 10 % 0 % 10 %
Mid Term Exam: Written 33 % 30 % 0 %
Final Exam: Written 37.5 % 40 %
Exam: Written 50 % 30 %
Exam: Oral 40 %
Comment:

Minimum required score at oral exam is 10 points.

Week by Week Schedule

  1. Economy definition, Microeconomy nad Macreoconomy, Microeconomic Concepts: scarcity, resources, opportunity costs, Normative and Positive Economy, Factors of Production, The Production Possibilities Curve
  2. Suply; Demand; Demand, Suply, and their Equlibrium
  3. Curves of Demand and Supply - Shifts, Government Intervention in Market Prices: Price Floors and Price Ceilings, Externalities and public goods, Market
  4. Elasticity - Definition - A Measure of Response, The Price Elasticity of Demand, Responsiveness of Demand to Other Factors, Income Elasticity of Demand, Cross Price Elasticity and Types of Goods, Price Elasticity of Supply
  5. Utility Theory, Utility Maximization and Demand, Indifference Curves, Budget line, Indifference Curves and Budget line: Consume Choice
  6. Introduction to the theory of production. Diminishing marginal product of factors in the short run. The balance of the company in the short and long term. Production costs.
  7. Production Choices and Costs: The Short Run, Production Choices and Costs: The Long Run Profit maximization – first and second order condition. Determinants of market structure. Profit/loss in real business.
  8. Midterm exam
  9. Perfect competition: A Model, Output Determination in the Short Run, Perfect Competition in the Long Run, The Nature of Monopoly, The Monopoly Model, Assessing Monopoly
  10. Monopolistic Competition: Competition Among Many, Advertising and Price Discrimination, Oligopoly: Competition Among the Few, Game Theory
  11. State regulation of industry
  12. Money and time; Financial instruments.
  13. Evaluation and selection of investment projects. Methods of evaluation of project value.
  14. Risk and uncertainty.
  15. Final exam

Literature

Grupa autora (2019.), Inženjerska ekonomika 1 - nastavni materijali, FER
Dubravko Sabolić (2017.), UVOD U MIKROEKONOMIKU – odabrane teme,
Paul A. Samuelson, William D. Nordhaus (2011.), Ekonomija, McGraw-Hill / Mate d.o.o.
by Pindyck, Robert S; Rubinfeld, Daniel L [aut]; Suman, Sanja [trl]. (2005.), Mikroekonomija., Mate

For students

General

ID 183404
  Winter semester
2 ECTS
L1 English Level
L2 e-Learning
30 Lectures
0 Seminar
0 Exercises
0 Laboratory exercises
0 Project laboratory

Grading System

85 Excellent
72 Very Good
60 Good
50 Sufficient