Q.5. Explain why the subject of engineering economic is important to the practicing engineers? (2006 - 07)
Ans. Economics is useful not only to individual but also to engineers, managers and society as a whole. Economics provides certain tools which can be used for solving various business problems. Knowledge of economics is useful in almost all sphere of life. It helps a businessman in his various decisions with regard to price, quantity, cost, size etc. it helps a policy make in formulating appropriate policies for the economy. It widens and depends the understanding of functioning of various forces.
Economics helps in forecasting demand. It is based on a number of factors concerning the product and same external forces. It depends on the size of market, the degree of completion, elasticity of demand. These estimates also help in finding out the likely return as investmentr. Economics helps a business manager to analyze the external environment of business. Engineering is the profession in which knowledge of the mathematical and natural science gained by study, experience, and practice is applied with judgment to develop way to ultize economically, the materials and forces of nature for the benefits of mankind e.g. the government influences business through its fiscal, monetary and industrial policies.
Q. 6. Write short note on “ Economic Development”. (2006-07)
Ans. Economic Development: -
Economic development of a country is virtually dependent upon the quality of management of its resources. It is only efficient management which enable the developing nations to make better use of material and human resources for economic development. In fact management is the single most critical social activity in connection with economics progress, physical, financial and man power resources are by themselves but passive agents:
They must be effectively combined and co-ordinate through sound and effective management, if a country is to experience a substantial level of economic growth and development.
Technology have played a vital role in the transformation of human society. They have allowed us to use the resources of the earth, the oceans and the air, and to harness the energy which makes the wheel of production on of a transport to move and communication to take place.
Technology have totally transformed life from what it was the beginning of the last century, when there was no cars, buses or airplanes and when medicine and surgery had not advanced to raise human life expectancy to over 50 or 6-0 years.
This has been possible through the growth of technology and related skill as also by the production of numerous goods.
Q.7. Discuss the concept of economics and state as to how the study of economics is helpful in business decision-making. (2004-05)
Or. Discuss the importance of Economics to managerial decisions making.
(2005-06)
Or. Examine critically the role of economics in managerial decision making. (2007-08)
Ans. Economics implies that economics is that domain of knowledge which is concerned with the management of wants by households. Economics may be defined.
(i) As a Science of Wealth: -
Economics is defined as the study of nature and causes of the generation of wealth of a nation.
(ii) Economics as a Science of Material Welfare: -
Economics is a study of mans actions in the ordinary business of life. It requires how he gets his income and how he spends it.
(iii) Economics as a Science of Allocation of scare Resource: -
Economics is the science which studies human behaviour as a relationship between ends and scare means which have alternatives uses.
(iv) Decision Making: -
Decision making is an act of choice where in an individual or a group selects a particular cource of action from the available alternatives in a given situation. Decision-making is at the core of managerial planning. It involves establishing goals, defining tasks, searching for alternatives and choice of the bst alternative. In group decision-making, the group members interact with each other, deliberate on the problem and arrive at some collective decision.