day 3

Question 1

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

Answer 1

engineering economy

Question 2

it is an economic or a market situation in which only a single seller or producer supplies a commodity or a service

Answer 2

monopoly

Question 3

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

Answer 3

oligopoly

Question 4

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

Answer 4

perfect competition

Question 5

it is an economic or market situation in which a single consumer or buyer buys a commodity or a service from suppliers

Answer 5

monopsony

Question 6

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

Answer 6

oligopsony

Question 7

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

Answer 7

capitalism

Question 8

these are tangible things - things that you can touch - that satisfy human wants

Answer 8

goods

Question 9

these are activities that people do for themselves of for other people to satisfy their wants

Answer 9

services

Question 10

products or service that are required to support human life and activities, which will be purchased in somewhat the same quantity even though the price varies considerably

Answer 10

needs or necessities

Question 11

products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained

Answer 11

luxuries

Question 12

the quantity of a certain commodity that is bought at a certain price at a given place and time

Answer 12

quantity demanded

Question 13

the quantity of a certain commodity that is offered for sale at a certain price at a given place and time

Answer 13

quantity supplied

Question 14

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

Answer 14

law of supply and demand

Question 15

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

Answer 15

law of diminishing returns

Question 16

1 banker’s year

Answer 16

360 days

Question 17

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

Answer 17

simple interest

Question 18

a type of simple interest in which interest is calculated as through each month had 30 days

Answer 18

ordinary simple interest

Question 19

if not divisible by 400

Answer 19

ordinary year

Question 20

if divisible by 400

Answer 20

leap year

Question 21

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

Answer 21

exact simple interest

Question 22

is the discount of one unit of principal per unit time

Answer 22

rate of discount

Question 23

is defined as the basic annual rate of interest

Answer 23

nominal rate of interest

Question 24

is defined as the actual or exact rate of interest earned on the principal during one-year period

Answer 24

effective rate of interest

Question 25

is defined as a series of equal payments occurring at equal interval of time

Answer 25

annuity

Question 26

is a type of annuity where the payments are made at the end of each period beginning from the 1st period

Answer 26

ordinary annuity

Question 27

uniform series compound amount factor

Answer 27

F/A

Question 28

uniform series sinking fund factor

Answer 28

A/F

Question 29

uniform series capital recovery factor

Answer 29

A/P

Question 30

uniform series present worth factor

Answer 30

P/A

Question 31

is a type of annuity where the payments are made at the beginning of each period starting from the 1st period

Answer 31

annuity due

Question 32

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

Answer 32

deterred annuity

Question 33

is a series of disbursements or receipts that increases or decreases in each succeeding period by constant amount

Answer 33

uniform arithmetic gradient

Question 34

is a series consisting of end of period payments, where each payment increases or decreases by a fixed percentage

Answer 34

uniform geometric gradient

Question 35

refers to the present worth of a property that is assumed to last forever. the capitalized cost of any property is the “sum of the first cost and the present costs of perpetual replacement, operation and maintenance”.

Answer 35

capitalized cost

Question 36

is the decrease in the value of physical property due to passage of time

Answer 36

depreciation

Question 37

symbol for annual depreciation

Answer 37

d

Question 38

symbol for first cost

Answer 38

C0

Question 39

symbol for book value before life expectancy (L)

Answer 39

BV

Question 40

symbol for years before life expectancy
(L)

Answer 40

n

Question 41

symbol for salvage value

Answer 41

SV

Question 42

symbol for total depreciation after year n

Answer 42

Dn

Question 43

symbol for deprecation charge on year n

Answer 43

dn

Question 44

is a certificate of indebtedness of a corporation usually for a period not less than ten years and guaranteed by a mortgage on certain assets of the corporation or its subsidiaries

Answer 44

bond