9. Eng Econ (F) Flashcards
it is the analysis and evaluation of the factors that will
affect the success of engineering projects to the end that
a recommendation be made which will ensure the best use of capital
Engineering Economy
____________________________
- it is a market situation in which there are so few
suppliers of a particular product that one supplier’s
actions significantly impact prices and supply.
oligopoly
____________________________
- it is an economic or a market situation in which only a
single seller or producer supplies a commodity or a
service
monopoly
it is a market condition in which a product is traded
freely by buyers and sellers in large numbers without
any individual transaction affecting the price.
Perfect competition or atomic competition (if not limited sellers/buyers ex. palengke)
it is an economic or market situation in which a single
consumer or buyer buys a commodity or a service from
suppliers.
Monopsony (ex. Government - limited buyer)
It means buyers
psony
It means seller
poly
these are tangible things – things that you can touch –
that satisfy human wants.
___________________________
Goods
It is an economic or market situation in which there are
many sellers or producers that supplies a commodity or
a service to very few consumers.
____________________________
Oligopsony
it is an economic system based on the private
ownership of the means of production and distribution of
goods, characterized by a free competitive market and
motivation by profit.
capitalism
these are activities that people do for themselves or for
other people to satisfy their wants.
____________________________
services
products or services that are required to support human life and activities, which will be purchased in
somewhat the same quantity even though the price varies considerably
Needs or necessities
products or services that are desired by humans and will be purchased if money is available after the required
necessities have been obtained.
luxuries
the quantity of a certain commodity that is bought at a certain price at a given place and time.
Quantity demand
the quantity of a certain commodity that is offered for sale at a certain price at a given place and time.
Quantity supplied
under conditions of perfect competition the price at which a given product will be supplied and purchased is the price that will result in the supply and the demand being equal. ____________
Law of supply and demand
when the use of one of the factors of production is limited, either in increasing cost or by absolute quantity,
a point will be reached beyond which an increase in the variable factors will result in a less that proportionate
increase in output.
Law of diminishing returns
interest on an investment that is calculated once per period, usually annually, on the amount of the capital
alone and not on any interest already earned.
Simple interest
it is a type of simple interest in which interest is calculated on the basis of a year with 365 days rather than the conventional 360 days.
Exact simple interest
is the discount of one unit of principal per unit time
rate of discount
is defined as the basic annual rate of interest
Nominal Rate of Interest (r)
is defined as the actual or exact rate of interest earned on the principal during one-year period.
Effective Rate of Interest (ERI)
is defined as a series of equal payments occurring at equal interval of time.
annuity
is a type of annuity where the payments are made at the end of each period beginning from the 1st period.
Ordinary annuity
is a type of annuity where the payments are made at
the beginning of each period starting from the 1st period.
Annuity due
is the type of annuity where the first payment is made later than the first or is made several periods after the beginning of the annuity.
Deferred annuity
is a series of disbursements or receipts that increases or decreases in each succeeding period by constant amount
Uniform arithmetic gradient
is a series consisting of end-of-period payments, where each payment increases or decreases by a fixed
percentage
Uniform geometric gradient
refers to the present worth of a property that is
assumed to last forever
Perpetuity
sum of the first cost and the present
costs of perpetual replacement, operation and
maintenance
Capitalized cost
is the decrease in the value of physical property due to passage of time.
Depreciation
The asset depreciates evenly over its useful life
Straight line method
Assumes that depreciation is invested in a fund that earns compound interest over time
Sinking fund method
Applies a fixed depreciation rate to the asset’s book value (rather than orig cost) each year
Decline value at particular %
Declining balance method or constant percentage method
