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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 of the following is NOT a principle of Engineering Economics?
Which of the following is NOT a principle of Engineering Economics?
Risk and uncertainty are inherent in projecting the future outcomes of alternatives in Engineering Economics.
Risk and uncertainty are inherent in projecting the future outcomes of alternatives in Engineering Economics.
True
The principle that involves brainstorming to develop options for a decision is called ______.
The principle that involves brainstorming to develop options for a decision is called ______.
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What does Economics study?
What does Economics study?
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Which economic concept is crucial for project evaluation?
Which economic concept is crucial for project evaluation?
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Why is it important to revisit decisions in Engineering Economics?
Why is it important to revisit decisions in Engineering Economics?
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Match the principles of Engineering Economics with their descriptions:
Match the principles of Engineering Economics with their descriptions:
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Study Notes
Introduction to Engineering Economics
- What is Engineering Economics? It's a discipline where engineering principles are combined with economic analysis to make good decisions for technical projects. It involves comparing costs, benefits, and alternatives to ensure projects are efficient and use resources wisely.
Principles of Engineering Economics
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Develop the Alternatives: Generate as many different options as possible by brainstorming. Having more choices leads to better decision-making.
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Focus on the Difference: The future outcomes of different alternatives are prioritized. The best choice is based on the key differences between the options. This involves analysis, projections, and comparison.
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Use a Consistent Viewpoint: Look at the future outcomes of each alternative from a fixed perspective, usually the owner's point of view. This helps create a clear and unified assessment.
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Use a Common Unit of Measure: Express the possible outcomes of the options using a consistent unit. This makes it easier to compare and analyze different choices. For example, using pesos or units to calculate total costs or profits.
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Consider All Relevant Criteria: The decision should weigh both monetary and non-monetary criteria. This means looking at measurable outcomes like cost and also factors that are harder to quantify, like environmental impact.
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Make Uncertainty Explicit: Acknowledge that future outcomes are uncertain and involve risks. This requires using probability and analysis to understand the potential range of results and how they might affect different options.
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Revisit Your Decisions: Continuously review your choices and learn from experience. Compare actual outcomes with initial projections to adjust strategies for ongoing improvement.
Economic Concepts
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Studying economics provides valuable knowledge about resource allocation decisions, opportunity costs, and project evaluation, which are essential for good engineering decisions.
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Economics is about how goods and services are produced, distributed, and consumed. It helps understand the environment in which engineering projects operate.
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Description
This quiz explores the fundamentals of Engineering Economics, focusing on the combination of engineering principles and economic analysis for effective decision-making in technical projects. You'll learn about key principles such as developing alternatives, focusing on differences, and maintaining a consistent viewpoint for optimal outcomes.
