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Questions and Answers
What is Engineering Economics?
What is Engineering Economics?
Engineering Economics is the discipline concerned with the economic aspects of engineering, involving the systematic evaluation of the cost and benefits of proposed technical projects.
Which principle emphasizes the importance of developing alternatives in decision-making?
Which principle emphasizes the importance of developing alternatives in decision-making?
Which principle refers to using a common unit of measure for alternatives?
Which principle refers to using a common unit of measure for alternatives?
Risk and uncertainty should be ignored when projecting future outcomes.
Risk and uncertainty should be ignored when projecting future outcomes.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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What is the basic economic activity?
What is the basic economic activity?
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The study of human behavior with relation to ends and _____ means is a key economic concept.
The study of human behavior with relation to ends and _____ means is a key economic concept.
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Study Notes
Introduction to Engineering Economics
- Engineering applies knowledge from physics, chemistry, life sciences, and mathematics to develop large-scale products beneficial to society.
- Economics focuses on the production, distribution, and consumption of goods and services.
- Engineering Economics evaluates costs and benefits of proposed technical projects systematically.
Principles of Engineering Economics
- Develop the Alternatives: Creative brainstorming leads to a diverse selection of possible decisions.
- Focus on the Difference: Prioritize future outcomes; analyze and compare alternatives for a sound decision.
- Use a Consistent Viewpoint: Maintain a unified perspective during outcome development, often reflecting the stakeholders’ interests.
- Use a Common Unit of Measure: Facilitates easier analysis and comparison of alternatives using standard metrics, e.g., currency or quantities.
- Consider All Relevant Criteria: Decisions should incorporate monetary and non-monetary factors to choose preferred alternatives effectively.
- Make Uncertainty Explicit: Acknowledge inherent risks in projections and outcomes; incorporate them into analyses.
- Revisit Your Decisions: Continual learning from past decisions helps organizations adapt and improve over time.
Economic Concepts
- Economics provides insight into resource allocation decisions, opportunity costs, and project evaluation.
- Economic activities dominate human time; studying wants, efforts, wealth, and satisfaction highlights their importance in economics.
- Wants are unlimited while resources are limited, leading to the necessity of choice and prioritization.
- Problems of choice arise from the scarcity of resources, emphasizing the economic dilemma of fulfilling increasing wants.
Basic Economic Activities
- Economic activities systematically address material needs through the provision of goods and services.
- Production is the creation of utility or value in goods/services, essential for satisfying economic demands.
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Description
This quiz provides an overview of Engineering Economics, exploring its definitions and significance in the engineering profession. Discover how engineering principles intersect with economic concepts such as production, distribution, and consumption. Test your understanding of the foundational principles of this essential discipline.
