Engineering Economy

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 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 in somewhat the same quantity even though the price varies considerably.

Answer 10

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

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 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

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 18

Exact simple interest

Question 19

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

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

Answer 24

Annuity due

Question 25

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 25

Deferred annuity

Question 26

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

Answer 26

Uniform arithmetic gradient

Question 27

is 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 costs of perpetual replacement, operation and maintenance”.

Answer 28

Capitalized cost

Question 29

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

Answer 29

Depreciation

Question 30

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 30

Bond