Engineering Economy Flashcards
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
economic or a market
situation in which only a single
seller or producer supplies a
commodity or a service
monopoly
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
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
economic or market
situation in which a single
consumer or buyer buys a commodity
or a service from suppliers
monopsony
economic or market
situation in which there are many
sellers or producers that supplies
a commodity or a service to very
few consumers
oligopsony
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
demand
the quantity of a certain
commodity that is offered for sale
at a certain price at a given place
and time
supply
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
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
discount of one unit of
principal per unit time
rate of discount
basic annual rate of interest
nominal rate of interest
actual or exact rate of interest earned on the
principal during one-year period
effective rate of interest
a series of equal
payments occurring at equal
interval of time
annuity
type of annuity where the payments are made at the end of each period beginning from the 1st period
ordinary annuity
type of annuity where the
payments are made at the beginning of each period
annuity due
