Question Bank

Module-1: Economics for Engineers (HSMC-02).

Section B: Short Answer Questions (3–5 Marks)

1. Differentiate between Microeconomics and Macroeconomics with examples.

Basis	Microeconomics	Macroeconomics
Definition	Study of individual economic units like households and firms	Study of economy as a whole
Focus Area	Demand, supply, price of individual goods	National income, inflation, unemployment
Example	Price determination of smartphones	Calculation of GDP of India

 2. Explain the importance of the relationship between science and economic development.

Science provides new knowledge, which leads to innovation and the creation of new products and processes. These innovations can improve productivity, reduce costs, and create new markets, ultimately contributing to economic development. For example, medical advancements increase life expectancy and workforce efficiency, supporting sustained economic growth.

3. Describe the concept and significance of the Production Possibility Curve (PPC).

The PPC is a graphical representation showing all possible combinations of two goods that can be produced with available resources and technology. It illustrates concepts like opportunity cost, scarcity, and economic efficiency. The curve helps in decision-making and resource allocation.

4. How does engineering contribute to technological and economic progress?

Engineering applies scientific principles to solve real-world problems. It leads to the development of new infrastructure, machines, and technologies that enhance productivity. For example, civil engineering supports road and bridge construction, improving trade and mobility, thus contributing to economic growth.

5. Discuss the nature and applicability of economic laws in real life.

Economic laws are generalizations based on human behavior and economic activities. They are not universal or absolute like physical laws but tend to hold under normal conditions. For instance, the Law of Demand states that demand decreases as price increases, assuming other factors remain constant.

 6. Write a short note on the interdependence of engineering and technology.

Engineering and technology are interlinked. Engineering utilizes existing technologies to create practical applications, while technological progress often stems from engineering innovations. This synergy drives industrial growth and improves standards of living, forming a base for economic advancement.

 

Section C: Long Answer / Essay Questions (8–10 Marks)

1. Elaborate on the scope and significance of Micro and Macro Economics in engineering.

Microeconomics helps engineers understand cost minimization, production decisions, and resource allocation at a firm level. Macroeconomics offers insights into national economic trends such as inflation, interest rates, and GDP, influencing large-scale engineering projects. Together, they enable engineers to plan effectively, assess economic feasibility, and contribute to sustainable development.

2. Explain the relationship between Science, Engineering, Technology, and Economic Development using relevant examples.

Science generates knowledge; engineering applies it; technology is the result. Together, they fuel economic development. For example, scientific research on semiconductors led to electronic engineering innovations, resulting in technology like smartphones, which revolutionized communication and created economic opportunities globally.

3. Draw and explain the Production Possibility Curve. Highlight the concept of opportunity cost and economic growth using PPC.

[Diagram should show a concave PPC curve]

• Opportunity Cost: Moving from one point to another on the curve shows the trade-off—producing more of one good requires sacrificing some of the other.
• Economic Growth: When resources or technology improve, the PPC shifts outward, indicating higher production capacity and development.

4. Discuss the nature of economic laws. How are they different from physical or natural laws?

Economic laws are conditional and based on human behavior, which is variable and influenced by multiple factors. They are generalizations rather than certainties. In contrast, physical laws (like gravity) are consistent and universal. For example, the Law of Diminishing Marginal Utility applies in most situations but may vary based on preferences and context.

 5. Evaluate the role of scientific and technological advancements in transforming the economic status of a nation.

Advancements in science and technology drive innovation, increase productivity, create new industries, and improve public services. For example, India's progress in information technology and space research (like ISRO) has enhanced its global image, created employment, and contributed significantly to GDP growth and national development.