Study guide by a reputated professor

Lecture 1:Introduction to
Engineering Economy


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What is Economics ?


The study y of how limited resources is used to
satisfy unlimited human wants.




Slide 2 of 43 Industrial &Production Engineering




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, What is Economics ?

The study of how individuals and societies
choose
h t use scarce resources that
to th t nature
t and
d
previous generations have provided.




Slide 3 of 43 Industrial &Production Engineering




Resources


• Land
• Labor
• Capital




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, Land

All gifts of nature, such as: water, air, minerals,
sunshine,
hi plant
l t andd tree
t growth,
th as wellll as the
th land
l d
itself which is applied to the production process.




Slide 5 of 43 Industrial &Production Engineering




Labor

The efforts, skills, and knowledge of people which are
applied to the production process.
process




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