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Engineering Economics

Engineering Economics
What is considered as the basic consuming or demanding unit of a commodity?

Seller
Manufacturer
Producer
Buyer or consumer

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Engineering Economics
What refers to the present worth of cost associated with an asset for an infinite period of time?

Increment cost
Annual cost
Operating cost
Capitalized cost

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Homogeneous product
Perfect information and absence of all economic friction
All of these
Free market entry and exit

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Engineering Economics
Cash money and credit necessary to establish and operate an enterprise are generally called ______.

Assets
Liabilities
Funds
Capital

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

8 years
7 eyars
10 years
9 years

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Engineering Economics
What is a government bond which has an indefinite life rather than a specific maturity?

Coupon
Consol
T-bill
Debenture

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