If we look at the discipline of software engineering, we see that the microeconomics branch of economics deals more with the types of decisions we ne… - Barry Boehm

The dictionary defines "economics" as "a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services." Here is another definition of economics which I think is more helpful in explaining how economics relates to software engineering.

Software Engineering Economics is an invaluable guide to determining software costs, applying the fundamental concepts of microeconomics to software engineering, and utilizing economic analysis in software engineering decision making.

Poor management can increase software costs more rapidly than any other factor. Particularly on large projects, each of the following mismanagement actions has often been responsible for doubling software development costs.