Aeronautical Engineering BEng/MEng

Microeconomics E1 ECON1003

  • Academic Session: 2023-24
  • School: Adam Smith Business School
  • Credits: 10
  • Level: Level 1 (SCQF level 7)
  • Typically Offered: Semester 2
  • Available to Visiting Students: Yes

Short Description

This course aims to teach the basic analytical frameworks and techniques used to evaluate the economic profitability of engineering and other related projects. Furthermore, students will learn the different cost types, tax forms, inflation and interest rates needed to calculate any cash in-and outflows of engineering projects.


Lectures: 2 x 1 hrs x 10 weeks

Tutorials: 1 x 1 hr x 5 weeks (Fortnightly)

Please refer to MyCampus for timetable

Excluded Courses

ECON1001 Economics 1A

ECON1002 Economics 1B

ECON1010 Introductory Economics




ILO (covered)

Main Assessment In: April/May

Course Aims

The aim of this course is to provide participants with the opportunity to develop confidence and skills to apply basic principles of discounting methods while taking into account any kind of opportunity cost, taxes and inflation.

This course aims to encourage the acquisition of general scientific skills relating to the systematic analysis and ranking of mutually exclusive projects and independent projects for both, public and privately funded projects.

Intended Learning Outcomes of Course

By the end of this course students will be able to:

1) reproduce a detailed knowledge of cost types and cost optimisation techniques taking into account different types of interest rates for a single project and the production of goods

2) explain various evaluation and discounting methods of privately funded projects

3) illustrate an understanding of the background economic theory required for selecting publicly funded projects efficiently in terms of benefit maximisation and resource allocation, respectively, using the Benefit-Cost ratio analysis method;

4) recognise factors that contribute to exchange rate fluctuations and inflation/deflation changes

Minimum Requirement for Award of Credits

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.

The final mark must be a D3 or better to be awarded any credit.