Podcast
Questions and Answers
What does the law of supply and demand state?
What does the law of supply and demand state?
- Prices are fixed regardless of supply and demand
- Demand does not influence prices
- Prices are determined by the relationship between supply and demand (correct)
- Supply has no impact on prices
Which term describes a scenario where the quantity demanded changes significantly due to a small change in price?
Which term describes a scenario where the quantity demanded changes significantly due to a small change in price?
- Monopoly
- Perfect competition
- Inelastic demand (correct)
- Oligopoly
In a situation where supply is less than demand, what term is used to describe this condition?
In a situation where supply is less than demand, what term is used to describe this condition?
- Surplus
- Shortage (correct)
- Perfect competition
- Equilibrium point
What does the profession of engineering involve, according to the Accreditation Board for Engineering Technology?
What does the profession of engineering involve, according to the Accreditation Board for Engineering Technology?
According to the Principles of Engineering Economy, what is essential when evaluating alternatives?
According to the Principles of Engineering Economy, what is essential when evaluating alternatives?
What should be explicit in the evaluation of proposed engineering solutions?
What should be explicit in the evaluation of proposed engineering solutions?
What is the primary focus of Engineering Economy when evaluating proposed solutions?
What is the primary focus of Engineering Economy when evaluating proposed solutions?
Which of the following is NOT considered a type of Marketing?
Which of the following is NOT considered a type of Marketing?
Which of the following does NOT fall under the category of Consumer Goods?
Which of the following does NOT fall under the category of Consumer Goods?
What type of demand exists when there is an equal change in price and quantity demanded?
What type of demand exists when there is an equal change in price and quantity demanded?
Which factor does NOT influence demand?
Which factor does NOT influence demand?
What does Perfect Competition refer to in the market situation?
What does Perfect Competition refer to in the market situation?
What is the main characteristic of Inelastic Demand?
What is the main characteristic of Inelastic Demand?
What is the role of a seller in the market?
What is the role of a seller in the market?
How do buyers benefit in a perfect competition market?
How do buyers benefit in a perfect competition market?
What is the result when the supply and demand are equal according to the law of supply and demand?
What is the result when the supply and demand are equal according to the law of supply and demand?
What is the effective rate of interest?
What is the effective rate of interest?
What does the nominal rate of interest specify?
What does the nominal rate of interest specify?
What is the result of compound interest?
What is the result of compound interest?
What is Perpetuity?
What is Perpetuity?
What is the rate of interest that specifies the rate of interest and a number of interest periods in one year?
What is the rate of interest that specifies the rate of interest and a number of interest periods in one year?
What is simple interest calculated on?
What is simple interest calculated on?
What is the assumption made in Ordinary Simple Interest?
What is the assumption made in Ordinary Simple Interest?
What type of interest is calculated on the principal plus total amount of interest accumulated in the previous period?
What type of interest is calculated on the principal plus total amount of interest accumulated in the previous period?
What is the purpose of depreciation in terms of capital investment?
What is the purpose of depreciation in terms of capital investment?
What is the value of a property that is determined by a disinterested third party?
What is the value of a property that is determined by a disinterested third party?
What is the price that can be obtained from a property after it has been used?
What is the price that can be obtained from a property after it has been used?
What is the term for the decrease in value of a fixed asset due to wear and tear?
What is the term for the decrease in value of a fixed asset due to wear and tear?
What is the year when the scrap value is equal to the book value?
What is the year when the scrap value is equal to the book value?
What is the purpose of the Sinking Fund Method?
What is the purpose of the Sinking Fund Method?
What is the primary purpose of depreciation in terms of capital recovery?
What is the primary purpose of depreciation in terms of capital recovery?
What is the main cause of depreciation?
What is the main cause of depreciation?
What is the main reason for Functional Depreciation?
What is the main reason for Functional Depreciation?
What is the term for the length of time during which a property is capable of performing the function for which it was designed and manufactured?
What is the term for the length of time during which a property is capable of performing the function for which it was designed and manufactured?
What is the term for the length of time during which a property may be operated at a profit?
What is the term for the length of time during which a property may be operated at a profit?
Which method of determining depreciation uses the year’s digit (in reverse order) to compute for depreciation?
Which method of determining depreciation uses the year’s digit (in reverse order) to compute for depreciation?
Study Notes
Law of Supply and Demand
- Prices are determined by the relationship between supply and demand.
- A shortage occurs when demand exceeds supply.
Engineering Profession
- Involves utilizing materials and natural forces economically.
- It requires systematic evaluation of economic merits when assessing alternatives.
- Risk and uncertainty must be included in evaluations of proposed solutions.
Marketing Concepts
- Types of marketing do not include consumer goods marketing; rather, marketing strategies are emphasized.
- Consumer goods encompass clothing, household items, and food; technology gadgets are not considered consumer goods.
Demand Elasticity
- Unitary demand exists when there is an equal change in price and quantity demanded.
- Inelastic demand is characterized by lesser changes in quantity demanded despite price change.
- Demand is influenced by factors such as price expectation, income, and population, but production cost does not influence demand.
Market Structures
- Perfect competition allows many suppliers with no barriers to entry.
- The seller's role is to sell products, goods, or services in exchange for money.
- Buyers benefit in perfect competition through reduced prices due to competition.
Interest and Economics
- Effective interest rate reflects the actual rate on principal over one year.
- Nominal interest rate specifies interest rate compounded for a year.
- Compound interest includes interest calculated on both principal and accrued interest.
Depreciation Concepts
- Depreciation provides for the recovery of capital invested in physical property.
- Fair value is determined by a disinterested third party.
- The decrease in value due to wear and tear is termed physical depreciation.
Recovery and Value Assessment
- Salvage value is the price obtained from a property post usage.
- The Sinking Fund Method is utilized to compute depreciation, illustrating annuity concepts.
- Functional depreciation often results from asset obsolescence.
Life and Capacity of Assets
- Physical life refers to the duration a property can perform its designed function.
- Economic or useful life is the time during which a property can operate profitably.
Depreciation Methods
- The Sum-of-Years’ Digit Method calculates depreciation using declining digits.
- The Straight-Line Method and others offer different strategies for assessing depreciation based on usage and life expectancy of assets.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the fundamental principles of supply and demand, and how they influence pricing. Additionally, delve into the engineering profession and its emphasis on economic evaluation and risk management. This quiz will test your understanding of these crucial concepts in economics and engineering.
