Engineering Economy

Question 1

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

economic or a market
situation in which only a single
seller or producer supplies a
commodity or a service

Answer 2

monopoly

Question 3

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

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

economic or market
situation in which a single
consumer or buyer buys a commodity
or a service from suppliers

Answer 5

monopsony

Question 6

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

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

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

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 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

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

discount of one unit of
principal per unit time

Answer 19

rate of discount

Question 20

basic annual rate of interest

Answer 20

nominal rate of interest

Question 21

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

Answer 21

effective rate of interest

Question 22

a series of equal
payments occurring at equal
interval of time

Answer 22

annuity

Question 23

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

type of annuity where the
payments are made at the beginning of each period

Answer 24

annuity due

Question 25

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

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

Answer 26

uniform arithmetic gradient

Question 27

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

Answer 28

capitalized cost

Question 29

sum of the first cost and the present costs of perpetual replacement, operation and maintenance

Answer 29

capitalized cost

Question 30

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

Answer 30

deprecitaion

Question 31

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 31

bond