Engineering Economy

Front 1

social sciences w/c consists of that body of knowledge dealing with people and their assets or resources

Back 1

economics

Front 2

defined as that branch of economics w/c involves the application of definite laws of Economics, theories of investment and business practices to engineering problems involving cost

Back 2

engineering economy

Front 3

considers all factors affecting the economy of the project w/c can be reduced to specific monetary values

Back 3

economy analysis

Front 4

5 functions of engineering economy

Back 4

*seeking of new objectives

*discovery of factors

*investment of capital

*comparison of alternatives

*bases for decision

Hint 4

BCDIS

Front 5

determination of the methods and sources of financing the project

Back 5

financial analysis

Front 6

determines all aspects of the project w/c cannot be reduced to monetary values

Back 6

intangible analysis

Front 7

those w/c can be expressed in terms of monetary values

Back 7

tangible factors

Front 8

those w/c are difficult or impossible to express definitely in terms of monetary values

Back 8

intangible factors

Front 9

occurs when a certain product is offered for sale by many vendors or suppliers

Back 9

perfect competition

Front 10

opposite of perfect competition

Back 10

monopoly

Front 11

occurs when a unique product or service is available only from a single supplier and entry of all other possible suppliers are prevented

Back 11

perfect monopoly

Front 12

occurs when there are few suppliers and any action taken by anyone of them will definitely affect the course of action of the others

Back 12

oligopoly

Front 13

defined to be the amount of money or its equivalent w/c is given in exchange for it

Back 13

price of good or commodity

Front 14

defined to be a place where sellers and buyers come together

Back 14

market

Front 15

limited locality where certain goods such as those w/c are perishable are sold

Back 15

local market

Front 16

certain goods sold all over the country

Back 16

national market

Front 17

goods that are exported to other countries

Back 17

world market

Front 18

those that are consumed or used directly by people

Back 18

consumer goods

Front 19

those w/c produce goods and services for human consumption

Back 19

producer goods

Front 20

quantity of a certain commodity that is bought at a certain price at a given place and time

Back 20

demand

Front 21

the demand for a commodity varies inversely as the price of the commodity, though not proportionately

Back 21

law of demand

Front 22

occurs when a decrease in selling price will cause a greater than proportionate increase in the volume of sales

Back 22

elastic demand

Front 23

occurs when a decrease in selling price will cause a less than proportionate increase in size

Back 23

inelastic demand

Front 24

occurs when the mathematical product of price and volume of sales remains constant regardless of any change in price

Back 24

unitary elasticity of demand

Front 25

defined to be the capacity of a commodity to satisfy human want

Back 25

utility

Front 26

an increase in the quantity of any good consumed or acquired by an individual will decrease the amount of satisfaction derived from that good

Back 26

law of diminishing utility

Front 27

utility of the last unit of the same commodity w/c is consumed or acquired

Back 27

marginal utility

Front 28

last unit of similar commodities consumed or acquired

Back 28

marginal unit

Front 29

quantity of a certain commodity that is offered for sale at a certain price at a given time

Back 29

supply

Front 30

the supply of a commodity varies directly as the price of the commodity, though not proportionately

Back 30

law of supply

Front 31

when free competition exists, the price of a product will be that value where supply is equal to the demand

Back 31

law of supply and demand

Front 32

when one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output

Back 32

law of diminishing returns

Front 33

amount that received from the sale of an additional unit of a product

Back 33

marginal revenue

Front 34

additional cost of producing one more unit

Back 34

marginal cost

Front 35

output/input

Back 35

efficiency

Front 36

output in physical units/ input in physical units

Back 36

physical efficiency

Front 37

income in pesos / cost in pesos

Back 37

economic efficiency

Front 38

annual net profit / capital invested

Back 38

rate of return

Front 39

capital invested / net annual cash flow

Back 39

payout period