ENGINEERING ECONOMICS TERMS AND SYMBOLS

Question 1

the application of economic principles to engineering problems, for example is comparing the comparative costs of two alternative capital projects or in determining the optimum engineering course from the cost aspect

Answer 1

Engineering Economy

Question 2

is the science that deals with the production, allocation and use of goods and services

Answer 2

Economics

Question 3

the two major subdivisions of economics

Answer 3

Macroeconomics and Microeconomics

Question 4

is the study of the entire system of economics

Answer 4

Macroeconomics

Question 5

is the study of how the systems affects one business or parts of the economic system

Answer 5

Microeconomics

Question 6

are products or services that are required to support humans and activities that will be purchased in somewhat the same quantity even though the prices vary considerably

Answer 6

Necessities

Question 7

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

Answer 7

Luxuries

Question 8

is defines as anything that anyone wants or needs

Answer 8

Goods

Question 9

would be the performance of any duties or work for another, helpful or professional activity

Answer 9

Services

Question 10

refers to the distribution of goods and services

Answer 10

Marketing

Question 11

refers to the advertising , and other efforts to promote a products sale

Answer 11

Marketing a Product

Question 12

different types of goods

Answer 12

Consumer Goods, Producer Goods, Capital Goods

Question 13

are those such as food and clothing that satisfy human wants and needs

Answer 13

Consumer Goods

Question 14

are those such as raw materials and tools, used to make consumer goods

Answer 14

Producer Goods

Question 15

are the machinery, used in the production of commodities in producer goods

Answer 15

Capital Goods

Question 16

refers to how many of a certain good or services are available for people to purchase

Answer 16

Supply

Question 17

means how many people wish to buy that good or service

Answer 17

Demand

Question 18

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 demand being equal

Answer 18

Law of Supply and Demand

Question 19

it refers to the people’s willingness to buy a product or service

Answer 19

Demand

Question 20

is the plot or graph of the quantity demand versus the price

Answer 20

Demand Curve

Question 21

is the schedule or table listing of the quantity demanded with the corresponding price

Answer 21

Demand Schedule

Question 22

types of demand

Answer 22

Elastic Demand, Inelastic Demand, Unitary Demand

Question 23

exists when there is a greater change in quantity demanded as a response to a change in price

Answer 23

Elastic Demand

Question 24

exists when there is a lesser change in quantity demanded as a response to a change in price

Answer 24

Inelastic Demand

Question 25

exists when there is an equal change in price and quantity demanded (increase or decrease)

Answer 25

Unitary Demand

Question 26

factors that influence demand

Answer 26

income, population, taste and preference, price expectation, price of related goods

Question 27

it is the willingness of a producer to manufacture goods

Answer 27

Supply

Question 28

is the plot or graph of the quantity supplied versus the price

Answer 28

Supply Curve

Question 29

is the schedule or table listing of the quantity supplied with the corresponding price

Answer 29

Supply Schedule

Question 30

factors that influence supply

Answer 30

price of goods, cost of production, availability of resources, number of producers and sellers, technological advancement, taxes, subsidies

Question 31

relationship of supply and demand

Answer 31

shortage, surplus, equilibrium point

Question 32

the supply is less than the demand

Answer 32

shortage

Question 33

the supply exceeds the demand

Answer 33

surplus

Question 34

the supply is equal to the demand

Answer 34

equilibrium point

Question 35

is the place where the vendors and buyers meet to transact

Answer 35

Market

Question 36

market structures

Answer 36

perfect competition, perfect monopoly, oligopoly

Question 37

occurs in a situation where a commodity or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market

Answer 37

perfect competition

Question 38

exist when a unique product or services is available from a single vendor can prevent the entry of all others into the market

Answer 38

perfect monopoly

Question 39

exist when there are so few suppliers of a product or service that action by one will almost inevitably result in similar action by the others

Answer 39

oligopoly

Question 40

Vallue or amount of money at a time designated as the present or time 0. Referred to as present worth (PW), prevent value (PV)z net present value (NPV), discounted cash flow (DCF), and capitalized cost (CC), monetary units, such as pesos

Answer 40

P

Question 41

Value or amount of money at some future time. Also, it is called future worth (FW) and future value (FV); pesos

Answer 41

F

Question 42

Series of consecutive, equal, end-of-period amounts of money. Also, it is called the annual worth (AW) and equivalent uniform annual worth (EUAW); pesos per year, pesos per month

Answer 42

A

Question 43

amount of money earned or paid over time based on an initial amount and interest rate; monetary units, such as pesos

Answer 43

I

Question 44

number of interest periods; years, months, days

Answer 44

n

Question 45

interest rate per time period; percent per year, percent per month

Answer 45

i

Question 46

time, stated in periods; years, months, days

Answer 46

t