Engineering 110: Introduction to Technology Management &

Economics for Engineers

Fall 2013
M/W 6-7:50pm, WGYOUNG CS24
Instructor: Meliha Bulu-Taciroglu melike@seas.ucla.edu
TAs: Ben Tzou, bentzou@ucla.edu
Dario Leekam, dariolekle1@ucla.edu

Office Hours: Tuesday, 11am -1pm, Boelter Hall 6532L
Text:
D. G. Newnan, J. P. Lavelle, T. Eschenbach, Engineering Economic Analysis,
11th Edition, 2012 & accompanying Study Guide.
Lecture Notes posted on the CourseWeb.
Class Website: https://courseweb.seas.ucla.edu/classView.php?term=13F&srs=186361200
Grading:
Class Participation :
Economics is a dynamic topic. We will follow current events and discuss them in class to see the links between theory and
practice. You will be provided with news articles (via posted links on the CourseWeb). You are expected to participate in the
current-event discussions. You are encouraged to continue the discussions on the online forum. Only in-class current events
discussion knowledge will be tested.
Homework 30%:
Homeworks are going to be posted on the CourseWeb. You will submit electronic files (PDF files only!). No hard copies will
be accepted. No late submissions will be accepted. The names of the files that you submit should have the following format:
assignmentname_lastname_firstname. If your name is Adam Smith and you are submitting Homework 1, the name of your
file should be: homework1_smith_adam. The complete solution should be included in homeworks including the methodology
that is used. (For example, only one number as the answer of a question is not acceptable even though it may be correct.)
Last Homework will be a Case Study :
You are going to be working on your last Homework with a group. The details will be posted as the Quarter progresses.
*Graduate Students must write an additional 10-15 page paper, for details, contact the instructor or one of the TAs by
November 8, 2013.
Midterm 30%:
October 28, Monday at regular class time. Closed notes and book. A formula sheet will be provided. You will need a
calculator (calculators that can hold text in memory are not allowed.)
Final 40%:
December 9, Monday, 8-11am. Cumulative with an emphasis on the material covered after the midterm. Closed notes and
book. A formula sheet will be provided. You will need a calculator (calculators that can hold text in memory are not
allowed.)
IMPORTANT NOTE: It is your responsibility to make sure that all Homework and Midterm scores appear on Gradebook
correctly. If you see any missing scores let us know before the Final Exam!!!

Course Objectives:
The objective of this course is to introduce engineers and scientists to the fundamental principles of economics as they apply
to Technology Management.
Course Contents:
This course will cover the most critical components of micro (individual, firm, and industry) and macro
(government, national, international) level economics as they relate to technology management. Students will be equipped
with economics terminology so that they can follow the current economic events and discuss their innovations impact with
business decision makers. A primary objective is to prepare students for the work environment where articulating ideas
spontaneously and clearly is critical. Hence, students are expected to read and be prepared to discuss the current economics
and technology management topics.
The course is intended for junior and senior-level engineering undergraduate students as well as engineering
graduate students. No prior course work in accounting, business, economics, finance, marketing or technology management
is necessary.
Course Schedule & Topics

Week 1. Introduction to Microeconomics of Product Markets

I. Introduction

II. Course Objectives

III. The Microeconomics of Product Markets
Understanding the language of economics: fixed, variable, marginal, average, sunk, opportunity, recurring, and non-recurring,
incremental, cash and life cycle costs. Understanding the methods of forecasting: per unit, segmenting, indices, power-sizing,
triangulation, learning curves.

IV. Making Economic Decisions: Problem complexity, role of engineering economic analysis, decision making process,
ethics.

Week 2. Profit Maximization, Supply Curve, Demand Curve, Price

I. Economies of Scale

II. Economic Profit and Profit Maximization

III. Supply Dynamics

IV. Supply and Demand Interaction and Price

Week 3. Further Analysis of Production and Markets

I. Externalities and Market Failure

II. Consumer and Producer Surplus

III. What Can Companies Do to Further Increase Their Profits

IV. Efficiency Impact of Market Intervention

V. Net Present Worth

Week 4. Understanding the Financing of Technology

I. Time Value of Money: computing cash flows, time value of money, discount rates, interest equivalence

II. Computing Cash Flows: types and receipts and disbursements

III. Present Worth Analysis

Week 5. Midterm and Annual Cash Flow Analysis

Midterm Exam (Monday October 28, 2013 in class)

I. Annual Cash Flow Analysis

Week 6. Rate of Return Analysis and Introduction to Macroeconomics

I. Internal Rate of Return

II. Introduction to Macroeconomic Principles: GDP, National Income, Inflation, Unemployment

I. Week 7. World Economy with Numbers

I. Choosing the Best Alternative

II. Nominal vs. Real GDP

III. Macroeconomic Policies and Their Effects

Week 8. The Future and Uncertain Events

I. Estimates and their Use in Economic Analysis

II. Ranges of Highest Likelihood

III. Simple Probability in Forecasting

IV. Joint Probability Distributions

V. Decision Trees

Week 9. International Economics

I. Currency Valuation

II. Trade and its effects

Week 10.

I. Interaction of Technology Management and Global Economics


Final Exam: Monday, December 9, 2013 (8-11am)