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Engineering Economy (Concepts) > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

One of the social sciences which consists of that body knowledge dealing with people and their assets or resources

A

Economics

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2
Q

Defined as the sum total of knowledge which treats of the creation and utilization of goods and services for the satisfaction of human wants

A

Economics

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3
Q

Defined as that branch of Economics which involves the application of definite laws of Economics, theories of investment and business practices to engineering problems involving cost

A

Engineering Economy

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4
Q

The study of economic problems with the concept of obtaining the maximum benefit at the least cost

A

Engineering Economy

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5
Q

Involves the study of cost features and other financial data and their applications in the field of engineering as bases for decision

A

Engineering Economy

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6
Q

Important application of Engineering Economy

A
  1. Seeking of New Objectives
  2. Discovery of Factors
  3. Investment of Capital
  4. Comparison of Alternatives
  5. Bases for Decision
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7
Q

Considers all factors affecting the economy of the project which can be reduced to specific monetary values

A

Economy Analysis

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8
Q

The determination of the methods and sources of financing the project, either through equity capital or borrowed capital, or a combination of both

A

Financial Analysis

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9
Q

Determines all aspect of the project which cannot be reduced to monetary values and considers the uncertainty and the risk inherent in the project

A

Intangible Analysis

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10
Q

Are those which can be expressed in terms of monetary values

A

Tangible Factors

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11
Q

Are those which are difficult or impossible to express definitely in terms of monetary values

A

Intangible Factos

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12
Q

It is also called irreducible factors

A

Intangible Factors

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13
Q

Occurs when a certain product is offered for sale by many vendors or suppliers, and there is no restriction against other vendors from entering the market

A

Perfect competition

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14
Q

The opposite of perfect competition

A

Monopoly

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15
Q

Occurs when a unique product or service is available only from a single supplier and entry of all other possible suppliers is prevented

A

Perfect monopoly

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16
Q

Occurs when there are few suppliers and any action taken by anyone of them will definitely affect the course of action of the others

A

Oligopoly

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17
Q

Defined to be the amount of money or its equivalent which is given in exchange for it.

A

Price

18
Q

It regulates the production and it is also directly proportional to it

A

Price

19
Q

Defined to be a place where sellers and buyers come together

A

Market

20
Q

A limited locality where certain goods such as those which are perishable are sold

A

Local market

21
Q

Certain goods sold all over the country are said to have a _____

A

National market

22
Q

Goods that are exported to other countries are said to have a _____

A

World market

23
Q

Are those that are consumed or used directly by people, or are things and services which serve to satisfy human needs

A

Consumer goods

24
Q

Are those which produce goods and services for human consumption

A

Producer goods

25
Q

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

A

Demand

26
Q

States that the demand for a commodity varies inversely as the price of the commodity, though not proportionately

A

Law of Demand

27
Q

Occurs when a decrease in selling price will cause a greater than proportionate increase in the volume of sales

A

Elastic Demand

28
Q

Goods which are considered luxuries are said to have _____

A

Elastic Demand

29
Q

Occurs when a decrease in selling price will cause a less than proportionate increase in sales

A

Inelastic Demand

30
Q

Occurs when the mathematical product of price and volume of sales remains constant regardless of any change in prince

A

Unitary elasticity of demand

31
Q

Defined to be the capacity of a commodity to satisfy human want

A

Utility

32
Q

An increase in the quantity of any good consumed or acquired by an individual will decrease the amount of satisfaction derived from that good

A

Law of Diminishing Utility

33
Q

It is the utility of the last unit of the same commodity which is consumed or acquired

A

Marginal utility

34
Q

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

A

Supply

35
Q

The supply of a commodity varies directly as the price of the commodity, though not proportionately

A

Law of Supply

36
Q

States that when free competition exists, the price of a product will be that value where supply is equal to the demand

A

Law of Supply and Demand

37
Q

States that when one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output

A

Law of Diminishing Returns

38
Q

The amount received from the sale of an additional unit of a product

A

Marginal revenue

39
Q

The additional cost of producing one more unit

A

Marginal cost

40
Q

It is a human ideal worth striving for

A

Perfection

Engineering Economy (Concepts) (5 decks)

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