Engineering Economy

Question 1

Is the analysis and evaluation of the factors that will affect the success of engineering projects to the end that a recommendation is 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 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 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 that satisfy human wants

Answer 8

Goods

Question 9

These are activities that people do for themselves or for other people to satisfy their wants

Answer 9

Services

Question 10

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

Answer 10

Necessities

Question 11

Products or servuices 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 (Demand)

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 (Supply)

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 than proportionate increase in output

Answer 15

Law of Diminishing Returns

Question 16

Interest on an investment that is calculated once per period, usually annually, on the amount of the capita alone and not on any interest earned

Answer 16

Simple Interest

Question 17

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

Answer 17

Ordinary simple interest

Question 18

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 18

Exact simple interest

Question 19

It is the discount of one unit of principal per unit time

Answer 19

Rate of discount

Question 20

Is defined as the basic annual rate of interest

Answer 20

Nominal rate of interest

Question 21

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

Answer 21

Effective rate of interest

Question 22

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

Answer 22

Annuity

Question 23

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

Answer 23

Ordinary annuity

Question 24

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

Answer 24

Uniform Arithmetic Gradient

Question 25

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

Answer 25

Annuity Due

Question 26

Is a type of annuity where the first payment is made later than the first or is made from several periods at the beginning of the annuity

Answer 26

Deferred annuity

Question 27

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

Answer 27

Uniform Geometric Gradient

Question 28

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 cost of perpetual replacement, operation, and maintenance.”

Answer 28

Capitalized cost

Question 29

The decrease in value of physical property due to passage of time

Answer 29

Depreciation

Question 30

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

Answer 30

Bond