University of Technology Sydney

49003 Economic Evaluation

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2020 is available in the Archives.

UTS: Engineering: Professional Practice and Leadership
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

Economic evaluation of investment options is an integral part of the professional role of an engineer–manager. Such evaluation requires:

  1. appreciation of the economic and other forces which may influence investment decision-making
  2. knowledge of the concepts and principles of macroeconomics and microeconomics
  3. familiarity with the frameworks and methods for evaluating investment options, and
  4. the ability to apply economic reasoning to evaluate investment options and make recommendations.

This subject aims to develop students' knowledge and skills in these areas.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1. demonstrate the relevance of economics to their profession;
2. explain macro-economic concepts such as gross domestic product, value added, international trade, investment multiplier, GDP deflator, and macroeconomic policy instruments;
3. describe micro-economic concepts relating to consumers, producers and markets;
4. evaluate viability of investment in projects, from financial and economic perspectives; and
5. apply economic concepts and reasoning to engineering decision making.

Course intended learning outcomes (CILOs)

This subject also contributes specifically to the development of the following Course Intended Learning Outcomes (CILOs):

  • Socially Responsible: FEIT graduates identify, engage, and influence stakeholders, and apply expert judgment establishing and managing constraints, conflicts and uncertainties within a hazards and risk framework to define system requirements and interactivity. (B.1)
  • Design Oriented: FEIT graduates apply problem solving, design thinking and decision-making methodologies in new contexts or to novel problems, to explore, test, analyse and synthesise complex ideas, theories or concepts. (C.1)
  • Technically Proficient: FEIT graduates apply theoretical, conceptual, software and physical tools and advanced discipline knowledge to research, evaluate and predict future performance of systems characterised by complexity. (D.1)
  • Collaborative and Communicative: FEIT graduates work as an effective member or leader of diverse teams, communicating effectively and operating autonomously within cross-disciplinary and cross-cultural contexts in the workplace. (E.1)
  • Reflective: FEIT graduates critically self-review their own and others' performance with a high level of responsibility to improve and practice competently for the benefit of professional practice and society. (F.1)

Contribution to the development of graduate attributes

Engineers Australia Stage 1 competencies
Students enrolled in the Master of Professional Engineering should note that this subject contributes to the assurance of Engineers Australia Stage 1 competencies: 1.5, 1.6, 2.4.

Teaching and learning strategies

Student learning in the subject is facilitated by:

1. pre-class review of subject materials available on UTSOnline – this will enable students to engage in meaningful discussion in the class;

2. formal lectures – to re-assess students' understanding of concepts and methods, and their applications in real-life situations (case studies);

3. active participation in class discussions and activities understanding of, and confidence in, the application of concepts and methods;

4. assignments – designed to test studnets' ability to apply concepts and methods in specific contexts, analyse policy trade-offs, and develop constructive critique;

5. quizzes – designed to assess knowledge and understanding of subject content; and

6. feedback on assignments and quizzes.

Content (topics)

Introduction to Economics

  • Evolution of economic thought
  • Definition and classification of economics

Macroeconomics

  • National Income
  • Multiplier Effect
  • International trade
  • Macroeconomic policy

Microeconomics

  • The theory of the consumer
  • The theory of the producer
  • The theory of the market

Project Evaluation

  • The context of project evaluation
  • Financial evaluation
  • Economic Evaluation (Cost-benefit analysis)
  • Sensitivity and Risk Analysis

Assessment

Assessment task 1: Assignment 1

Objective(s):

This assessment task addresses the following subject learning objectives (SLOs):

1 and 2

This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs):

B.1, C.1, E.1 and F.1

Type: Report
Groupwork: Individual
Weight: 25%

Assessment task 2: Assignment 2

Objective(s):

This assessment task addresses the following subject learning objectives (SLOs):

1, 2, 3 and 4

This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs):

B.1, C.1, D.1, E.1 and F.1

Type: Report
Groupwork: Individual
Weight: 25%

Assessment task 3: Final Exam

Objective(s):

This assessment task addresses the following subject learning objectives (SLOs):

1, 2, 3 and 4

This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs):

B.1, C.1, D.1 and E.1

Type: Examination
Groupwork: Individual
Weight: 50%

Minimum requirements

In order to pass the subject, a student must achieve an overall mark of 50% or more.

Recommended texts

Economics

  • Baumol, W.J. and Blinder, A.S. (2015) Economics: Principles and Policy, South-Western, USA.
  • Gans, J., King, S. and Mankiw, G. (2018), Principles of Microeconomics, Cengage Learning, Albany, Victoria. [UTS library online resource]
  • Hubbard, G., Garnett, A., Lewis, P. and O'Brien, A. (2018), Macroeconomics, Pearson, Melbourne, Victoria. [UTS library online resource]
  • Mankiew, N.G. (2014) Principles of Economics, Cengage Learning, Inc.
  • Samuelson, P., Nordhaus, W.D., Richardson, S., Scott, G., and Wallace, R. (2010) Economics, Volume 1 (Microeconomics), Volume 2 (Macroeconomics), McGraw-Hill, Sydney.
  • Stiglitz, J. (2016) Principles of Economics, John Wiley & Sons, Milton, Qld.

Project Economics

  • Boardman, A.E., Greenberg, D.H., Vining, A.R. and Weimer, D.L. (2018) Cost-Benefit Analysis: Concepts and Practice, Cambridge University Press, Cambridge.
  • Cassimatis, P. (1988) A Concise Introduction to Engineering Economics, Unwin Hyman, Boston.
  • Commonwealth of Australia (2006) Handbook of Cost-Benefit Analysis, Financial Management Reference Material No. 6, Department of Finance and Administration, Canberra.
  • Park, C. (2016) Contemporary Engineering Economics, Pearson, Boston. [UTS library online resource]

Additional Reading on Economics

  • Chang, H-J. (2014) Economics: The User's Guide, Penguin Press, UK.
  • Quiggin, J. (2019) Economics in Two Lessons: Why Markets Work So Well, and Why They Can Fail So Badly, Princeton University Press, New Jersey.
  • Schneider, G. (2019) The Evolution of Economic Ideas and Systems: A Pluralist Introduction, Routledge.