Economics is the social science that describes the factors that determine the production, distribution and

consumption of goods and services.

Engineering economics is a subset of economics for application to engineering projects. Engineers seek
solutions to problems, and the economic viability of each potential solution is normally considered along
with the technical aspects. Engineering economics involves formulating, estimating, and evaluating the
economic outcomes when alternatives to accomplish a defined purpose are available.

Fixed costs are costs that do not vary with the level of production. They are the same if a firm produces one
unit of their product or one million units. Fixed costs typically include such things as the rent on the building
in which the firm produces its product.

Variable costs are the costs that do vary with the level of production. For example, a restaurant's fixed costs
will include the cost of the food they prepare and serve to customers as well as the cost of the labor of wait
staff and cooks.

The GDP(Domestic) of a country is defined as the market value of all final goods and services
produced within a country in a given period of time whereas

GNP(National) is the total value of all final goods and services produced by a country's factors of
production and sold on the market in a given time period.