Engineering Economy Flashcards
(30 cards)
Is the analysis and evaluation of the factors that will affect the success of engineering projects to the end that a recommendation is made which will ensure the best use of capital.
Engineering Economy
It is an economic or a market situation in which only a single seller or producer supplies a commodity or service
Monopoly
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
Oligopoly
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
Perfect competition
It is an economic or market situation in which a single consumer or buyer buys a commodity or a service from suppliers
Monopsony
It is an economic or market situation in which there are many sellers or producers that supplies a commodity or service to very few consumers
Oligopsony
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
Capitalism
These are tangible things 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 somewhat the same quantity even though the price varies considerably
Necessities
Products or servuices 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
Quantity demanded (Demand)
The quantity of a certain commodity that is offered for sale at a certain price at a given place and time
Quantity Supplied (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 than 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 capita alone and not on any interest earned
Simple Interest
A type of simple interest in which interest is calculated as through each month had 30 days
Ordinary simple interest
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
Exact simple interest
It is the discount of one unit of principal per unit time
Rate of discount
Is defined as the basic annual rate of interest
Nominal rate of interest
Is defined as the actual or exact rate of interest earned on the principal during one-year period
Effective rate of interest
Is defined as a series of equal payments occurring at equal interval of time
Annuity
Is a type of annuity where the payments are made at the end of each period beginning from the 1st period
Ordinary annuity
A series of disbursements or receipts that increases or decreases in each succeeding period by a constant amount
Uniform Arithmetic Gradient
