Engineering Economics A - E

1. "Knowledge and understanding". The course introduces the knowledge of the principles of economic rationality and provides the basic methods for business decisions in the field of cost analysis, market analysis, and economic analysis of engineering design. Finally, the student is introduced to the main macroeconomic aggregates and basic models for the analysis of economic systems.
2. “Applying knowledge and understanding”. Upon completion of the course, students must be able, for each economic decision, to identify the cost items and the expected benefits. They must also be able to identify the variables of the macroeconomic context that are relevant to business decisions. Finally, they will have to be able to apply the main criteria for evaluating the economic value of a project.
3. "Making judgments". Based on the basic principles learned, the student will be able to autonomously investigate further aspects relating to business and engineering decisions in the economic-financial field.
4. "Communication skills". At the end of the course, the student must be able to communicate the reasons underlying the analysis of costs, of the market, and of engineering projects using specialized language.
5. “Learning skills”. The principles of economics provided at the beginning of the course will be a basis for conveying further contents in the microeconomic, macroeconomic and engineering project fields. They can be used by the learner to refine and deepen their skill set through independent learning and knowledge acquisition.

The knowledge gained will be useful for better understanding economic dynamics, in line with goals 7, 8, 9, 11, 12, and 13 of the 2030 Agenda.

The course includes frontal lectures in Microeconomic and Macroeconomic theory, frontal lectures on the principles of economic and financial analysis of investment projects in engineering, and weekly exercises based on problems assigned by the lecturer.

Expository Teaching (DE) includes:

• frontal lectures in Microeconomics and Macroeconomics;

• frontal lectures on the criteria for the economic and financial evaluation of engineering projects.

Interactive Teaching (DI) includes:

• exercises on sample problems assigned by the lecturer;

• simulations and end‑of‑course tests on exam.net;

• possible seminars delivered by professionals from academia and industry;

• sessions dedicated to clarifications and review of the various topics covered.

If the course is delivered in blended or fully online mode, the necessary adjustments may be introduced with respect to what is stated above, in order to ensure consistency with the syllabus and full coverage of the planned programme.

It is specified that it is essential to consult and carefully study the course syllabus and all supporting documents published in the course’s MS Teams channel (see the section of the syllabus on Reference Texts/Teaching Materials), since these materials contain relevant information for the proper conduct of teaching activities, for access to the materials, for the procedures to request assistance, for the organisation of assessment tests and, more generally, for the smooth running of the course.

For successful participation in the course, the following are required:

• basic logical–mathematical skills (indispensable), necessary to understand the quantitative methods used in the analysis of costs, markets and projects;

• knowledge of the concept of the derivative of a real‑valued function of a real variable (indispensable), of the geometric meaning of the derivative (indispensable), and of the derivatives of elementary functions and the main operations involving derivatives (important), for the application of economic optimization principles.

The examination consists of a 50‑minute written test, including theory questions and applied exercises on the topics covered in the syllabus, to be taken on the exam.net platform (the detailed specifications of the test are published in the course’s Teams channel). Following the marking of the test carried out on exam.net, the Examination Committee may integrate the assessment with an oral examination, which is accessible only after passing the written test with a minimum score of 18 points.

More specifically, the written test includes:

• 8 open‑ended and/or multiple‑choice theory questions in Microeconomics and Macroeconomics (Parts 1 and 2) (16 points)

• 1 applied exercise in Microeconomics (Part 1) (8 points)

• 1 applied exercise in the economic‑financial evaluation of projects (Part 3) (8 points)

Each question can be awarded a maximum of 2 points and each exercise 8 points, for a total maximum score of 32 points. If the score exceeds 30, the final grade of 30 cum laude is awarded.

Moreover, if the timetable allows, participants may take an end‑of‑course test (before the Christmas break), which will be held using the same assessment methods as the examination. Finally, before the end of the course, a mock examination will be organised in order to enable self‑assessment of individual preparation.

Further details regarding the structure of the examination, the maximum score obtainable for each question, the corresponding set of rules for calculating points, the tools allowed during the examination, the procedures for booking exam sessions and the end‑of‑course test, and the acceptance and recording of grades are provided in the documents published in the course’s MS Teams channel, which should be read carefully.

The examination timetable is published on the degree programme website.

The following list is purely exemplary.

Microeconomics:

1. What is the difference between elastic demand and inelastic demand?

2. When does oversupply occur?

3. What criterion does a perfectly competitive firm follow to determine the level of production?

Macroeconomics:

1. What is the difference between real GDP and nominal GDP?

2. What are the economic institutions that create money and how?

3. What is meant by structural unemployment?

Project Analysis:

1. Calculation of the Net Present Value (NPV) of a project.

2. Calculation of the Internal Rate of Return (IRR) of the project.

3. What are the advantages of the payback method?