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 2022 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. This subject aims to develop students’ knowledge in macroeconomics and microeconomics that underpin frameworks and methods for evaluating investment options from a broader economic perspective. Students also develop ability to apply economic reasoning to evaluate investment options and make recommendations. Students are not expected to have any prior knowledge of economics.

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.	apply macroeconomic and microeconomic principles and reasoning to make informed decisions for an engineering project;
3.	evaluate viability of investment in projects, from financial, economic, social and environmental perspectives;
4.	identify and incorporate “values” of multiple stakeholders when evaluating engineering projects; and
5.	communicate the outcome of their complex technical analyses in a succinct form for a non-technical audience.

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)
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)

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 development of the following Engineers Australia Stage 1 competencies:

1.5. Knowledge of engineering design practice and contextual factors impacting the engineering discipline.
3.2. Effective oral and written communication in professional and lay domains.

Teaching and learning strategies

Student learning in the subject is facilitated by a range of activities, as follows.

Pre-class work
Students are required to review subject materials available on Canvas. This will enable students to actively engage in meaningful discussion in the class and participate in other activities.

Weekly lecture and tutorial session
A 3-hour weekly session will begin with the formal lecture. The purpose is to develop students' understanding of concepts and methods. This will follow with a tutorial, which is designed to provide opportunity for students to apply their understanding of concepts and methods for problem-solving.

Project
An authentic group project is designed for students to identify a project that is significant to their community/society, and to work with their peers to apply concepts and methods for evaluating the project in specific contexts, to analyse trade-offs when making decisions about the project, and to develop constructive critique on the concepts and methods applied for evaluating projects.

Online quizzes
Quizzes are designed to provide a continuous assessment of students’ knowledge and their understanding of subject contents.

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: Project Evaluation

Intent:	To apply an understanding of economic concepts to evaluate an engineering project. Students will also develop their abilities to present complex technical analyses in a succinct form for a non-technical audience.
Objective(s):	This assessment task addresses the following subject learning objectives (SLOs): 1, 4 and 5 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1 and E.1
Type:	Report
Groupwork:	Group, group and individually assessed
Weight:	60%

Assessment task 2: Online Quizzes

Intent:	To demonstrate knowledge and understanding of subject content.
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 and D.1
Type:	Quiz/test
Groupwork:	Individual
Weight:	40%

Minimum requirements

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

Required texts

Boardman, AE, Greenberg, DH, Vining, AR and Weimer, DL (2018) Cost-Benefit Analysis: Concepts and Practice, Cambridge University Press.

Mankiw, NG (2021) Principles of Economics, MA Cengage.

Park, CS (2020) Fundamentals of Engineering Economics, Pearson.

Recommended texts

ALTERNATIVE TEXTS

Baumol, WJ and Blinder, AS (2019) Economics: Principles and Policy, Cengage Learning, USA.
Gans, J, King, S and Mankiw, G (2018), Principles of Microeconomics, Cengage Learning, Albany, Victoria.
Hubbard, G., Garnett, A., Lewis, P. and O'Brien, A. (2018), Macroeconomics, Pearson, Melbourne, Victoria.
Stiglitz, JE, Walsh, CE, Gow, J, Guest, R, Tani, M (2016) Principles of Economics, John Wiley & Sons, Milton, Qld.
Park, C. (2016) Contemporary Engineering Economics, Pearson, Boston.
Sullivan, WG, Wicks, EM and Koelling, CP, 2018, Engineering Economy, Pearson.

RECOMMENDED ADDITIONAL READINGS

Chang, H-J. (2014) Economics: The User's Guide, Penguin Press.
Dasgupta, P. (2021), The Economics of Biodiversity: The Dasgupta Review, London: HM Treasury. [https://www.gov.uk/government/publications/final-report-the-economics-of-biodiversity-the-dasgupta-review]
Quiggin, J. (2019) Economics in Two Lessons: Why Markets Work So Well, and Why They Can Fail So Badly, Princeton University Press.
Stilwell, F. (2012) Political Economy: The Contest of Economic Ideas, Oxford University Press.