Question 1

To resolve uncertainty, engineers apply

Accepted Answer

A) marginal analysis. 
B) cash-flow analysis. 
C) sensitivity analysis. 
D) risk analysis. 
E) economic impact analysis. 
A) marginal analysis. 
B) cash-flow analysis. 
C) sensitivity analysis. 
D) risk analysis. 
E) economic impact analysis.

Question 2

Briefly describe the structure of a decision-making process as discussed in your textbook.

Accepted Answer

The textbook presents this structure in

Question 3

Engineering economics is important because

Accepted Answer

A) it is a natural science. 
B) it provides answers to all financial questions. 
C) it facilitates the establishment of verifiable facts about decisions. 
D) it uses mathematical models to address engineering issues. 
E) it is based on objective laws. 
A) it is a natural science. 
B) it provides answers to all financial questions. 
C) it facilitates the establishment of verifiable facts about decisions. 
D) it uses mathematical models to address engineering issues. 
E) it is based on objective laws.

Question 4

In the context of your textbook, abstraction means

Accepted Answer

A) a study. 
B) a method. 
C) a methodology. 
D) a model. 
E) an approach. 
A) a study. 
B) a method. 
C) a methodology. 
D) a model. 
E) an approach.

Question 5

The best way to find some answers to difficult moral questions in engineering design and project evaluation is

Accepted Answer

A) to ask your friends. 
B) to consult professional engineering associations. 
C) to search the web. 
D) to read newspapers. 
E) to read professional textbooks. 
A) to ask your friends. 
B) to consult professional engineering associations. 
C) to search the web. 
D) to read newspapers. 
E) to read professional textbooks.

Question 6

Maintenance costs are an important component of the total costs of many engineering projects. Normally in engineering projects these costs are added to the purchase price of a piece of engineering equipment. For the following items, describe how important the maintenance costs are compared to the item's price:
(i)A tractor
(ii)A desk
(iii)A computer
(iv)An oil pump

Accepted Answer

The maintenance costs of a tractor, comp

Question 7

Joan borrowed $1 000 one year ago. Now she has to repay $1 100. Therefore, the interest rate she pays is

Accepted Answer

A) $1 000. 
B) $1 100. 
C) $100. 
D) 110%. 
E) 10%. 
A) $1 000. 
B) $1 100. 
C) $100. 
D) 110%. 
E) 10%.

Question 8

When an engineer prepares a feasibility study, what economic information must she possess in order to do it correctly?

Accepted Answer

A) engineering specification 
B) expert opinion about this project 
C) macroeconomic situation in the world 
D) potential future costs and benefits of the project 
E) the level of uncertainty 
A) engineering specification 
B) expert opinion about this project 
C) macroeconomic situation in the world 
D) potential future costs and benefits of the project 
E) the level of uncertainty

Question 9

What is the best way to describe a mathematical model?

Accepted Answer

A) It is an exact copy of the real world. 
B) It is a simplification to describe the real world in a reasonable way. 
C) It is a set of mathematical relationships with assumptions based on natural laws. 
D) It is a relationship that includes all aspects of a modelling situation. 
E) It describes all complex processes that occur in the real world. 
A) It is an exact copy of the real world. 
B) It is a simplification to describe the real world in a reasonable way. 
C) It is a set of mathematical relationships with assumptions based on natural laws. 
D) It is a relationship that includes all aspects of a modelling situation. 
E) It describes all complex processes that occur in the real world.

Question 10

Suppose that a local government decides to build a bridge. In order to justify this project, economists want to ask people directly about their willingness to pay for the bridge. Using the discussion in your textbook, list at least three problems with this economic measure.

Accepted Answer

The following three problems can be ment

Question 11

You were notified by an economics expert that the total costs of a project you are about to start are approximately $50 000. In order to justify this project, what additional economic information do you need?

Accepted Answer

First of all, it is necessary to underst

Question 12

You decide to buy a car. The following are some questions you have to answer with respect to your purchase. Which question is directly associated with engineering economics?

Accepted Answer

A) what colour? 
B) what size? 
C) CD player or tape player? 
D) to lease or to own? 
E) Ford or Toyota? 
A) what colour? 
B) what size? 
C) CD player or tape player? 
D) to lease or to own? 
E) Ford or Toyota?

Question 13

List at least three non-economic factors (attributes)that may be used as evaluation criteria in the decision-making process.

Accepted Answer

Non-economic factors are mainly associat

Question 14

Every year Stan takes a Canada student loan of $5 000 to pay his tuition fees at the University. The loan is interest-free for as long as Stan is a full-time student. After graduation, he will have to start re-paying the loan within 6 months including interest. Is this a good decision? Why?

Accepted Answer

Yes, this is a good decision. Stan can b

Question 15

Evaluation of an engineering project involves the following constraints

Accepted Answer

A) financial, environmental, social and political constraints. 
B) technical and financial constraints. 
C) technological and social constraints. 
D) time and money constraints. 
E) budget and time constraints. 
A) financial, environmental, social and political constraints. 
B) technical and financial constraints. 
C) technological and social constraints. 
D) time and money constraints. 
E) budget and time constraints.

Question 16

Which of the following statements best describes the moral issues faced by engineers while evaluating projects?

Accepted Answer

A) moral issues are clearly defined in engineering design 
B) moral issues do not matter as long as technical goals are achieved 
C) your employer is the only person who can define what is ethical or unethical 
D) there are no general answers to moral questions 
E) since moral issues are value judgements they must not be taken into consideration 
A) moral issues are clearly defined in engineering design 
B) moral issues do not matter as long as technical goals are achieved 
C) your employer is the only person who can define what is ethical or unethical 
D) there are no general answers to moral questions 
E) since moral issues are value judgements they must not be taken into consideration

Question 17

With sensitivity analysis, usually only one parameter is varied at a time

Accepted Answer

A) because the appropriate tools are not available to vary parameters simultaneously. 
B) because this best emulates "real world" scenarios. 
C) so as to simplify the procedure. 
D) so that the effect of each can be observed independently of all other parameters. 
E) so that the effect can be effectively monitored. 
A) because the appropriate tools are not available to vary parameters simultaneously. 
B) because this best emulates "real world" scenarios. 
C) so as to simplify the procedure. 
D) so that the effect of each can be observed independently of all other parameters. 
E) so that the effect can be effectively monitored.

Question 18

Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is

Accepted Answer

A) $5 100. 
B) 102%. 
C) $100. 
D) 2%. 
E) $5 000. 
A) $5 100. 
B) 102%. 
C) $100. 
D) 2%. 
E) $5 000.

Question 19

How should engineers address moral questions associated with economic evaluation of engineering projects?

Accepted Answer

Engineers have a responsibility to socie

Question 20

If you decide to buy a home, list basic economic and non-economic factors you have to take into account and rank them

Accepted Answer

You need to know the price of a home, cu

To resolve uncertainty, engineers apply

Briefly describe the structure of a decision-making process as discussed in your textbook.

Engineering economics is important because

In the context of your textbook, abstraction means

The best way to find some answers to difficult moral questions in engineering design and project evaluation is

Joan borrowed $1 000 one year ago. Now she has to repay $1 100. Therefore, the interest rate she pays is

When an engineer prepares a feasibility study, what economic information must she possess in order to do it correctly?

What is the best way to describe a mathematical model?

Suppose that a local government decides to build a bridge. In order to justify this project, economists want to ask people directly about their willingness to pay for the bridge. Using the discussion in your textbook, list at least three problems with this economic measure.

You were notified by an economics expert that the total costs of a project you are about to start are approximately $50 000. In order to justify this project, what additional economic information do you need?

You decide to buy a car. The following are some questions you have to answer with respect to your purchase. Which question is directly associated with engineering economics?

List at least three non-economic factors (attributes)that may be used as evaluation criteria in the decision-making process.

Every year Stan takes a Canada student loan of $5 000 to pay his tuition fees at the University. The loan is interest-free for as long as Stan is a full-time student. After graduation, he will have to start re-paying the loan within 6 months including interest. Is this a good decision? Why?

Evaluation of an engineering project involves the following constraints

Which of the following statements best describes the moral issues faced by engineers while evaluating projects?

With sensitivity analysis, usually only one parameter is varied at a time

Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is

How should engineers address moral questions associated with economic evaluation of engineering projects?

If you decide to buy a home, list basic economic and non-economic factors you have to take into account and rank them

Time Value of Money

Cash Flow Analysis

Comparison Methods: Part I

Comparison Methods: Part Ii

Financial Accounting and Business Plans

Replacement Decisions

Taxes

Inflation

Public Sector Decision Making

Project Management

Dealing With Uncertainty and Risk

Filters

Exam 1: Engineering Decision Making

To resolve uncertainty, engineers apply

Briefly describe the structure of a decision-making process as discussed in your textbook.

Engineering economics is important because

In the context of your textbook, abstraction means

The best way to find some answers to difficult moral questions in engineering design and project evaluation is

Joan borrowed $1 000 one year ago. Now she has to repay $1 100. Therefore, the interest rate she pays is

When an engineer prepares a feasibility study, what economic information must she possess in order to do it correctly?

What is the best way to describe a mathematical model?

Suppose that a local government decides to build a bridge. In order to justify this project, economists want to ask people directly about their willingness to pay for the bridge. Using the discussion in your textbook, list at least three problems with this economic measure.

You were notified by an economics expert that the total costs of a project you are about to start are approximately $50 000. In order to justify this project, what additional economic information do you need?

You decide to buy a car. The following are some questions you have to answer with respect to your purchase. Which question is directly associated with engineering economics?

List at least three non-economic factors (attributes)that may be used as evaluation criteria in the decision-making process.

Every year Stan takes a Canada student loan of $5 000 to pay his tuition fees at the University. The loan is interest-free for as long as Stan is a full-time student. After graduation, he will have to start re-paying the loan within 6 months including interest. Is this a good decision? Why?

Evaluation of an engineering project involves the following constraints

Which of the following statements best describes the moral issues faced by engineers while evaluating projects?

With sensitivity analysis, usually only one parameter is varied at a time

Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is

How should engineers address moral questions associated with economic evaluation of engineering projects?

If you decide to buy a home, list basic economic and non-economic factors you have to take into account and rank them

Time Value of Money

Cash Flow Analysis

Comparison Methods: Part I

Comparison Methods: Part Ii

Financial Accounting and Business Plans

Replacement Decisions

Taxes

Inflation

Public Sector Decision Making

Project Management

Dealing With Uncertainty and Risk

Filters