Engineering Economy Flashcards
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.
Engineering Economy
it is an economic or a market situation in which only a single seller or producer supplies a commodity or a service.
Monopoly
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.
Oligopoly
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.
Perfect competition
it is an economic or market situation in which a single consumer or buyer buys a commodity or a service from suppliers.
Monopsony
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.
Oligopsony
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.
Capitalism
these are tangible things – things that you can touch – that satisfy human wants.
Goods
these are activities that people do for themselves or for other people to satisfy their wants.
Services
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.
Necessities
products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained.
Luxuries
the quantity of a certain commodity that is bought at a certain price at a given place and time.
Quantity demanded
the quantity of a certain commodity that is offered for sale at a certain price at a given place and time.
Quantity supplied
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.
Law of supply and demand
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.
Law of diminishing returns
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.
Simple Interest
a type of simple interest in which interest is calculated as through each month had 30 days.
Ordinary simple interest
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.
Exact simple interest
is the discount of one unit of principal per unit time
Rate of Discount
is defined as the basic annual rate of interest.
Nominal rate of interest
is defined as the actual or exact rate of interest earned on the principal during one-year period.
Effective rate of interest
is defined as a series of equal payments occurring at equal interval of time
Annuity
is a type of annuity where the payments are made at the end of each period beginning from the 1st period.
Ordinary annuity
is a type of annuity where the payments are made at the beginning of each period starting from the 1st period.
Annuity due
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.
Deferred annuity
is a series of disbursements or receipts that increases or decreases in each succeeding period by constant amount.
Uniform arithmetic gradient
is a series consisting of end-of-period payments, where each payment increases or decreases by a fixed percentage
Uniform Geometric gradient
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”.
Capitalized cost
is the decrease in the value of physical property due to passage of time.
Depreciation
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
Bond
