EECON Flashcards
profession in which the mathematical and natural sciences are used with
judgment to create methods for economically using the resources and forces of nature for the benefit
of mankind.
Engineering
focuses on how finite resources are used to satisfy unsatisfied human desires. Additionally, it examines how people and society decide to use the limited resources
that nature and earlier generations have supplied.
economics
education and training applied to labor in the production
process.
Human Capital
3 resources of Economics
Land, Labor, Capital
assets and money which are used in the production
process.
Financial Capital
the efforts, skills, and knowledge of people which are applied to the
production process.
Labor
all gifts of nature, such as water, air, minerals, sunshine, plant, and tree growth,
as well as the land itself which is applied to the production process
Land
tools, buildings, machinery - things
which have been produced and are used in further production.Real Capital (Physical Capital)
Real Capital
a way to make decisions about money for engineering
systems.
Engineering Economy
In the business world, most decisions are based on making money, known as
Profit
the ones who make these decisions and a lot of engineers end up becoming
managers in manufacturing settings.
Managers
Principles of Engineering Economics
Develop the Alternatives
Focus on the Differences
Use a Consistent Viewpoint
Use a Common Unit of Measure
Consider All Relevant Criteria
Make Uncertainty Explicit
Revisit your Decisions
those which can be expressed in terms of monetary values
Tangible Factors
those which are difficult or impossible to express definitely in
terms of monetary values.
Intangible Factors
occurs a certain product is offered for sale by many vendors or
suppliers, and there is no restriction against other vendors from entering the market
Perfect Competition
the opposite of perfect competition. Occurs when a unique product or service
is available only from a single supplier and entry of all other possible suppliers is
prevented
Monopoly
occurs when there are few suppliers and any action taken by anyone of them
will definitely affect the course of action of the others.
Oligopoly
if prices go up, production will increase. If the price decrease,
production will also decrease or cease.
Price and Production
defined to be a place where sellers and buyers come together either. Goods exported to other countries are said to have a world market.
Local and National Market
are those that are consumed or used directly by people or are things and services which serve to satisfy human needs. Producer goods are those which produce goods and services for human consumption such as tools and ships.
Consumer Goods
are those which produce goods and services for human consumption such as tools and ships.
Producer goods
the quantity of a certain commodity that is bought at a certain price at a given
place and time.
Demand
states that the demand for a commodity varies inversely as the price
of the commodity, though not proportionately
Law of Demand
occurs when a decrease in selling price will cause a greater than proportionate increase in the volume of sales. Goods which are considered luxuries are said to have elastic demand, because as small decrease in cost will usually result in a big
increase in sales.
Elastic Demand
