9. Eng Econ (F)

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 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 2

oligopoly

Question 3

____________________________
- it is an economic or a market situation in which only a
single seller or producer supplies a commodity or a
service

Answer 3

monopoly

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 or atomic competition (if not limited sellers/buyers ex. palengke)

Question 4

it is an economic or market situation in which a single
consumer or buyer buys a commodity or a service from
suppliers.

Answer 4

Monopsony (ex. Government - limited buyer)

Question 5

It means buyers

Answer 5

psony

Question 6

It means seller

Answer 6

poly

Question 7

these are tangible things – things that you can touch –
that satisfy human wants.
___________________________

Answer 7

Goods

Question 8

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 8

Oligopsony

Question 9

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 9

capitalism

Question 10

these are activities that people do for themselves or for
other people to satisfy their wants.
____________________________

Answer 10

services

Question 11

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 11

Needs or necessities

Question 12

products or services that are desired by humans and will be purchased if money is available after the required
necessities have been obtained.

Answer 12

luxuries

Question 13

the quantity of a certain commodity that is bought at a certain price at a given place and time.

Answer 13

Quantity demand

Question 14

the quantity of a certain commodity that is offered for sale at a certain price at a given place and time.

Answer 14

Quantity supplied

Question 15

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 15

Law of supply and demand

Question 16

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 16

Law of diminishing returns

Question 17

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 17

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 (r)

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 (ERI)

Question 23

is defined as a series of equal payments occurring at equal interval of time.

Answer 23

annuity

Question 24

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

Answer 24

Ordinary annuity

Question 25

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

Answer 25

Annuity due

Question 26

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 26

Deferred annuity

Question 27

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

Answer 27

Uniform arithmetic gradient

Question 28

is a series consisting of end-of-period payments, where each payment increases or decreases by a **fixed percentage**

Answer 28

Uniform geometric gradient

Question 29

refers to the present worth of a property that is assumed to last forever

Answer 29

Perpetuity

Question 30

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

Answer 30

Capitalized cost

Question 31

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

Answer 31

Depreciation

Question 32

The asset depreciates evenly over its useful life

Answer 32

Straight line method

Question 34

Assumes that depreciation is invested in a fund that earns compound interest over time

Answer 34

Sinking fund method

Question 35

Applies a fixed depreciation rate to the asset's book value (rather than orig cost) each year Decline value at particular %

Answer 35

Declining balance method or constant percentage method