Name; Hasnain Nawaz Surname : Shaikh ROLL NO: 16 CH 42 B.E: Chemical Engineering (In Progress). Mehran University of Engineering and Technology Jamshore, ISO 9001 Certified.

1. PRESENTATION OF
ENGINEERING ECONOMICS
PRESENTED BY# 16 CH 42.
PRESENTED TO# SIR ASHFAQ PIRZADA.

2. INTRODUCTION TO
ECONOMICS

3. AGENDA
1) What is Economics?
2) Needs – Wants
3) Factors of Production

4. WHAT IS ECONOMICS

5. A social science that studies and
influences human behavior.
Economics is the study of what
constitutes rational human behavior for
the fulfillment of their needs and wants.
What is Economics?

6. ECONOMICS
Economics is derived from two Greek words
Oikos- a House
Nemein- to Manage
Means “Managing an Household”
Emphasis Significant contribution
Wealth Adam Smith
Welfare Alfred Marshall
Scarcity Lionel Robbins
growth Paul Samuelson

7. FATHER OF ECONOMICS
Adam smith (1723 - 1790),
Book “An Inquiry into Nature and Causes of
Wealth of Nations” (1776)
defined economics as, “the practical science
of production , consumption distribution of
wealth”

8. NEEDS AND WANTS

10. NEEDS VS WANTS
Needs are defined as,
“the goods or services that are necessarily required for
survival.”
Or
Needs refers to an individual's basic requirement that must be
fulfilled, in order to survive.
Can be Objective/Physical or Subjective
Objective needs - food, shelter, sleep
Subjective needs – affection, acceptance, self-esteem

11. TEN FUNDAMENTAL HUMAN NEEDS
Protection
Creation
Understan
ding
Participati
on
Identity
freedom
affection

12. OBJECTIVE NEEDS

13. NEEDS VS WANTS
Wants are described as,
“the goods and services, which an individual like to have
or would like desire.
OR
Wants are goods or services that are not necessary but
that we desire or wish for.
People have UNLIMITED WANTS with LIMITED
RESOURCES.

15. ABRAHAM MASLOW
Professor of Psychology
Columbia University
Focuses on describing the stages of
growth in humans
(April 1, 1908 – June 8, 1970)

16. THE HIERARCHAL MODEL
Being Need
Deficit
Needs

17. PHYSIOLOGICAL
NEEDS
Mostly, literal requirements for human survival
If not met, the human body cannot function
Metabolic needs – air, water, food, rest
Food
Water
Rest
Breathing

18. PHYSIOLOGICAL
NEEDS

19. SAFETY NEEDS
Once physical needs are met, safety needs take over.
It includes,
Safety of Haealth.
Financial, job security, security of employement etc.
Safety of property against natural disasters, calamities, wars,
etc

20. SAFETY NEEDS

21. SOCIAL NEEDS
Need to love and be loved
Need to feel a sense of belonging and acceptance
Small groups – clubs, office teams, school/college houses
Large groups – political parties, Sports teams, facebook

22. SOCIAL NEEDS

23. ESTEEM NEEDS
Need to be respected by others and in turn respect them
Sense of contribution, to feel self-valued, in profession or
hobby
Lower - respect of others, the need for status, recognition,
fame, prestige, and attention
Higher - self-respect, the need for strength, competence,
mastery, self-confidence, independence and freedom

24. ESTEEM NEEDS

25. SELF ACTUALIZATION
NEEDS
What a man can be, he must be
Intrinsic growth of what is already in a person
Growth-motivated rather than deficiency-motivated
Cannot normally be reached until other lower order needs are
met
Rarely happens - < 1%
Acceptance of facts, spontaneous, focused on problems
outside self, without prejudice

26. SELF ACTUALIZATION
NEEDS

27. 27
The Factors of Production
Product
Land
Labour Capital
Entrepreneur

28. 28
The Factors of
Production
Land includes the “gifts of nature,” or
natural resources not created by
human effort.
Capital includes the
tool,equipment,and factories used in
production.
Labour includes people with all their
efforts and abilities.
Entrepreneurs are individuals who
start a new business or bring a
product to market.