Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
31 Cards in this Set
- Front
- Back
One of the social sciences, which consists of that body of knowledge dealing with people and their assets or resources. |
Economics |
|
Defined as that branch of Economics, which involves the applications of definite laws of economics, theories of investment and business practices to engineering problems involving cost. |
Engineering Economy |
|
Engineering Economy may also be considered to mean the study of __ to engineering problems with the concept of obtaining maximum benefit at the least cost. |
economic theories and their applications |
|
5 Important uses of Engineering Economy |
- Seeking new objectives for the applications of engineering. - Discovery of factors limiting the success of a venture or enterprise. - Comparison of alternatives as a basis for decision. - Analysis of possible investments of capital. - Determination of bases for decision. |
|
2 Kinds of Goods |
- Consumer Goods - Producer Goods |
|
Consumed or are used directly by people, or things and services which serve to satisfy human needs. |
Consumer Goods |
|
Examples of consumer goods |
Clothes Shoes Soap Food Tape Recorders Houses Medical and dental services Barber and beauty services |
|
Produce goods and services for human consumption. |
Producer goods |
|
Examples of producer goods |
Electric motors Generators Tools Concrete mixers Busses Airplanes Ships |
|
Products or services that are required to support human life and activities, that will be purchased in somewhat the same quantity even though the price varies considerably. |
Necessities |
|
Products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained. |
Luxuries |
|
Quantity of a certain commodity that is bought at a certain price at a given place and time. |
Demand |
|
Quantity of a certain commodity that is offered for sale at a certain price at a given place and time. |
Supply |
|
Occurs when a decrease in selling price will cause a greater than proportionate increase in the volume of sales. |
Elastic Demand |
|
Elasticity demand of luxuries - __ __ in cost -> __ in sales |
Elastic Demand Small decrease in cost -> Big increase in sales |
|
Occurs when a decrease in the selling price will cause a less than proportionate increase in sales. |
Inelastic Demand |
|
Elasticity demand of necessities - __ __ in selling price __ __ in sales |
Inelastic Demand Big decrease in selling price WILL NOT CAUSE big increase in sales |
|
Occurs when the mathematical product of volume and price is constant |
Unitary Elasticity of Demand |
|
Formula in Unitary Elasticity of Demand |
PV = C P - price of the product V - volume of sales C - constant |
|
State the Law of Demand |
The demand for a commodity varies inversely as the price of the commodity, though not proportionally. |
|
State the Law of Supply |
The supply of a commodity varies directly as the price of the commodity, though not proportionally. |
|
State the Law of Supply and Demand |
When free competition exists, the price of a product will be that value where supply is equal to the demand. |
|
Price-Demand Relationship Curve |
|
|
Price-Demand Relationshipfor Necessities & Luxuries |
|
|
Price-Supply Relationship |
|
|
Price-Supply-Demand Relationship |
|
|
Occurs in a situationwhere a commodity or service is supplied bya number of vendors and there is nothing toprevent additional vendors entering in themarket. |
Perfect Competition |
|
Opposite of perfect competition. |
Monopoly |
|
A perfect monopoly exists when __. |
A unique product or service is available from a single vendor and that vendor can prevent the entry of all others into the market |
|
Exists when there are so fewsuppliers of a product or service that actionby one will almost inevitably result in similaraction by the others. |
Oligopoly |
|
State the Law of Diminishing Returns |
“When the use of one of the factors ofproduction is limited, either in increasingcost or by absolute quantity, a point willbe reached beyond which an increase inthe variable factors will result in a lessthan proportionate increase in output.” |