Engineering Economy Fundamentals

<p>Economics provides a framework for understanding and optimizing resources within engineering projects. (A)</p> Signup and view all the answers

<p>Application of economic concepts to solve problems involving cost in engineering projects. (D)</p> Signup and view all the answers

<p>Cost plays a central role in determining the feasibility and effectiveness of engineering solutions. (A)</p> Signup and view all the answers

<p>Engineering economy involves applying economic principles for maximizing benefit while minimizing cost in engineering projects. (A)</p> Signup and view all the answers

<p>Economy Analysis, Financial Analysis, Intangible Analysis (B)</p> Signup and view all the answers

<p>Marketing Strategies for the Project (B)</p> Signup and view all the answers

<p>To establish the methods and sources of financing the project (B)</p> Signup and view all the answers

<p>The financial analysis uses the cost figures and income projections established by the economy analysis. (C)</p> Signup and view all the answers

<p>The qualitative factors of the project that cannot be easily quantified (D)</p> Signup and view all the answers

<p>The cost of raw materials and labor (C)</p> Signup and view all the answers

<p>It incorporates subjective assessments and expert opinions into the analysis of intangible factors. (D)</p> Signup and view all the answers

<p>The economy analysis is a prerequisite for the financial analysis, supplying essential data. (C)</p> Signup and view all the answers

<p>To mitigate risks and uncertainties before committing resources to the project. (B)</p> Signup and view all the answers

<p>One vendor controlling the supply and price of the product (A)</p> Signup and view all the answers

<p>Tangible and Intangible Factors (D)</p> Signup and view all the answers

<p>The value of a company's reputation (A)</p> Signup and view all the answers

<p>The other suppliers would likely lower their prices to match the competitor. (D)</p> Signup and view all the answers

<p>Perfect competition provides a benchmark for comparing real-world market structures. (C)</p> Signup and view all the answers

<p>The amount of money exchanged for the good (A)</p> Signup and view all the answers

<p>A monopoly has complete control over price, while an oligopoly has less control. (A)</p> Signup and view all the answers

<p>The demand from consumers (C)</p> Signup and view all the answers

<p>Reduced consumer choice and potentially higher prices (D)</p> Signup and view all the answers

<p>It helps determine the best pricing strategy for a product based on customer sensitivity. (A)</p> Signup and view all the answers

<p>The supply of the good will increase, but not proportionally to the price increase. (A)</p> Signup and view all the answers

<p>Offer shoes in various styles, sizes, and functions. (B)</p> Signup and view all the answers

<p>As the quantity consumed increases, the marginal utility decreases due to diminishing utility. (C)</p> Signup and view all the answers

<p>Free competition allows for prices to adjust based on the interplay of forces of supply and demand, leading to an equilibrium price. (A)</p> Signup and view all the answers

<p>The price of the product will remain stable, as the market is in equilibrium. (D)</p> Signup and view all the answers

<p>The availability and scarcity of resources necessary for production, influencing both price and profit. (C)</p> Signup and view all the answers

<p>Price and production have a dynamic relationship, where price fluctuations influence production levels. (D)</p> Signup and view all the answers

<p>The geographic scope of the market, ranging from limited localities for local markets to national boundaries for national markets and global reach for world markets. (B)</p> Signup and view all the answers

<p>Goods that are directly utilized by individuals to satisfy their personal needs and wants. (A)</p> Signup and view all the answers

<p>The quantity of a certain commodity that is purchased at a specific price, time, and location, representing actual purchases rather than mere desire. (B)</p> Signup and view all the answers

<p>Demand decreases as price increases, but not necessarily proportionally, implying an inverse relationship. (A)</p> Signup and view all the answers

<p>A decrease in selling price causing a greater than proportionate increase in sales, reflecting high sensitivity to price changes. (A)</p> Signup and view all the answers

<p>A decrease in selling price resulting in a less than proportionate increase in sales, indicating limited sensitivity to price changes. (D)</p> Signup and view all the answers

<p>Luxury goods have a more elastic demand compared to necessity goods, as consumers are more sensitive to price changes for luxury items. (D)</p> Signup and view all the answers

<p>The actual act of purchasing the commodity, as desire without purchase does not constitute demand. (B)</p> Signup and view all the answers

The three basic steps are economy, financial, and intangible analysis.

Considers all monetary factors affecting a project's economic viability.

Determines financing methods for a project using equity or borrowed capital.

Assesses aspects of a project that cannot be quantified monetarily, including risks.

The upfront expense required to start a project.

Recurring expenses necessary for running a project after startup.

The expected profit from an investment relative to its cost.

The capital needed for day-to-day operations of a project.

An intangible aspect involving subjective assessment of a project's value.

The study of people and their assets/resources, focusing on goods and services to satisfy human wants.

A branch of economics applying economic principles to engineering problems involving costs and benefits.

The goal in Engineering Economy to achieve the highest advantage at the lowest cost.

Engineers who effectively apply scientific principles and move beyond technical tasks tend to achieve greater success.

Identifying fresh goals for engineering applications to improve economic outcomes.

The process of studying potential returns and risks in engineering ventures or capital enterprises.

Using comparisons of alternatives to inform engineering decisions in projects.

Factors that can be expressed in monetary values.

Factors difficult to express in monetary terms, also called irreducible.

Market condition where a unique product is sold by a single supplier, preventing others from entry.

Market situation where many vendors offer identical products with no entry restrictions.

Market structure with a few suppliers whose actions significantly influence each other.

The desire of consumers to purchase goods or services at given prices.

As price decreases, the quantity demanded generally increases, and vice versa.

A measure of how much the quantity demanded changes as the price changes.

As price increases, the quantity supplied generally increases, and vice versa.

The additional satisfaction gained from consuming one more unit of a good or service.

Occurs when the product of price and volume of sales remains constant despite price changes.

The capacity of a commodity to satisfy human wants; higher utility means higher demand.

The satisfaction from consuming additional units of a good decreases as quantity increases.

An economic system where industry focuses on profit based on price.

A place where sellers and buyers come together to transact goods.

A limited area where certain perishable goods are sold.

A market where goods are sold all over the country.

Goods consumed directly by people to satisfy needs.

Goods used to produce other goods or services.

When price decrease leads to a greater than proportionate increase in sales.

When price decrease leads to a less than proportionate increase in sales.