MODULE 1 Flashcards
What are the two aspects of engineering?
- materials and forces of nature
- needs of people
Because we live in a _____________ world, engineering must be closely associated with economic.
resource - constrained world
It is essential that engineering proposals be evaluated in terms of _________ and ______ before they are undertaken.
- worth
- cost
An essential prerequisite of successful engineering is ______________.
economic feasibility
Engineering is not a science, but an __________________.
application of science
It is an art composed of skill and ingenuity in adapting knowledge to the uses of humanity.
Engineering
They accredited the definition, “Engineering is the profession in which knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize economically, the materials and forces of nature for the benefit of mankind.
Accreditation Board for Engineering and Technology
It is the profession in which knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize economically, the materials and forces of nature for the benefit of mankind.
Engineering
What is the role of a scientist?
- add to mankind’s accumulated body of systematic knowledge
- dicover universal laws of behavior
What is the role of engineering?
to apply economic knowledge to a particular situations to produce products and services
To the engineer, ________ is not an end in itself but is the raw material from which he or she fashions structures, systems, products, and services.
knowledge
It is the foundation upon which the engineer builds toward the advancement of mankind.
Science
Science is the foundation upon which the engineer builds toward the __________.
advancement of mankind
Human wants may be expected increasingly to engage the attention of engineers is, in part, the basis for the incorporation of ________ and ________ in engineering curricula.
- humanistic
- social considerations
Why engineers need to understand humanistic or social considerations fields?
engineers seek solutions to the complex socio-technological problems of today
Engineers are confined with two important interconnected environments, the ______ and _______.
- physical
- economic
_________________ in the economic environment and engineering proposals in physical environment are linked by the production or construction process.
Want Satisfaction
Want Satisfaction in the economic environment and engineering proposals in physical environment are linked by the _____________________________.
production or construction process
True or False. Engineers do not have the tendency to disregard economic feasibility and are often appalled in practice by the necessity for meeting situations in which action must be based on estimates and judgement.
False (remove do not)
Draw the Total Environment of Engineering Process
draw
It is primarily a producer activity that comes into being to satisfy human wants. Its objective is to get the greatest end result per unit of resource expenditure.
Engineering
Engineering is essentially a physical process in which objective is __________________.
maximation of physical efficiency
What is the objective of engineering application?
get the greatest end result per unit of resource input
True or False. Physical efficiency is sometimes be less than unity or less than 100%.
False (sometimes - always)
The objective of engineering application is to get the greatest end result per unit of resource input. This statement is an expression of __________.
physical efficiency
Formula of Physical Efficiency:
efficiency (physical) = output / input
These are expressed in terms of economic units of output divided by economic units of input, each expressed in terms of a medium of exchange such as money.
Economic Efficiency
Formula for Economic Efficiency:
efficiency (economic) = worth / cost
It is the analysis and evaluation of the factors that will affect the economic success of engineering projects to the end that a recommendation can be made which will insure the best use of capital.
Engineering Economy
It deals with the concepts and techniques of analysis in evaluating the worth of systems, products, and services in relation to their cost.
Engineering Economy
In 19th century, ___________, a civil engineer address the role of economic analysis in engineering projects and his particular area of interest was railroad building in the United States in which the emphasis was on techniques that depended primarily in financial and actual mathematics.
Arthur M. Wellington
In what century did Arthur M. Wellington address the role of economic analysis in engineering projects?
19th century
In 1930, _______ published the first edition of his textbook and his emphasis on developing an economic view in engineering.
Eugene Grant
Economic view involves a realization that quite as definite a body of principles govern the economic aspects of an engineering decision as governs its physical aspects according to _________.
Eugene Grant
When did Eugene Grant published the first edition of his textbook?
1930
In 1942, ________________ wrote the first edition of Engineering Economy.
Woods and De Garmo
It designated the worth that a person attaches to an object or service.
Value
True or False. The value of an object is inherent not in the object but in regard that a person has for it.
True
It should not be confused with the cost or the price of an engineering economy studies.
Value
It is the power to satisfy human wants.
Utility
True or False. The utility of an object has for an individual is not determined by him or her.
False (remove not)
True or False. The utility of an object inheres not in the object but in the regard that a person has for it.
True
These are products and services that are directly used by people to satisfy their wants.
Consumer goods and services
Example of these are houses, cars, clothes, appliances, food, books, movies, medical and dental services, etc.
Consumer goods and services
They also satisfy human wants but indirectly in as much as they are used to produce the consumer goods and services.
Producer goods and services
Example of these are factory buildings, machine tools, airplane, ships, busses, etc.
Producer goods and services
It is the initial cost of a capitalized property, including transportation, installation of service, taxes, and other related initial expenditure in order to make the property or asset equipment functional.
First Cost
First Cost is sometimes called ___________.
investment cost
These are incurred by the operation of physical plant or equipment needed to provide service.
Operating Costs
Examples of these are labor and raw materials.
Operating costs
These occur over time until the structure, system, or equipment item is retired from service.
Maintaining costs
It is a cost that remains constant over a wide range of activity as long as the business does not permanently discontinue operations.
Fixed Cost
This include property taxes, overhead, interest of borrowed capital, etc.
Fixed Cost
It also refers to the cost that is not a function of the independent variable.
Fixed cost
It is a cost the varies more or less directly with the volume of output.
Variable cost
This includes labor, material, power, etc.
Variable cost
The additional cost that will result from increasing the output of a system by one or more units.
Incremental cost
It is the cost of an additional unit of a product.
Marginal Cost
It refers to the cost in the past.
Sunk Cost
This may include any past expenditure, the uncovered balance of an investment, and capital already invested that cannot be retrieved.
Sunk Cost
These are products or services that required to support human life and activities, that will purchased in somewhat the same quantity even though the price varies considerably.
Necessities
It is defined as any product that has an income-elasticity of demand less than one.
Necessity product or staple product
What does it mean when a product has an income-elasticity of demand less than one?
This means that as income arises proportionately less income is spent on such products.
These are products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained.
Luxuries
It is defined as any product that has an income-elasticity of demand greater than one.
Luxury product
What does it mean when a product has an income-elasticity greater than one?
This means that as income rises, proportionately more income is spend on such products.
It is the quantity of a certain commodity that is bought at a certain price at a given place and time.
Demand
It occurs when a decrease in selling price result in a greater that proportionate increase in sales.
Elastic demand
It occurs when a decrease in selling price produces a less than proportionate increase in sales.
Inelastic Demand
It occurs when the mathematical product of volume and price is constant
Unitary elesticity of demand
It refers to the exchange mechanism that brings together the sellers and buyers of a product, factor of production or financial security.
Market
It refers to the place or are in which buyers and sellers exchange a well-define commodity
market
It is defined as the basic consuming or demanding unit of a commodity.
Buyer or consumer
It may be an individual purchaser of a good service, a household ( a group of individuals who make joint purchasing decisions), or a government.
Buyer or consumer
It is defined as an entity which makes product, good or service available to buyer or consumer in exchange of monetary decision.
Seller
Many sellers and many buyers. What is the market situation?
Perfect Competition
One seller and many buyers. What is the market situation?
Monopoly
Many sellers and one buyer. V
Monopsony
One seller and one buyer. What is the market situation?
Bilateral monopoly
Two sellers and many buyers. What is the market situation?
duopoly
Many seller and two buyers. What is the market situation?
duopsony
Few sellers and many buyers. What is the market situation?
oligopoly
Few sellers and few buyers. What is the market situation?
Oligopsony or bilateral oligopoly
