Test your basic knowledge |

Principles Of Engineering: Economics

Subject : engineering
Instructions:
  • Answer 21 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Compare investment alternatives over a common period of time






2. Money cannot be added or subtracted unless it occurs at the same point(s) in time






3. Define the planning horizon






4. Risks and returns tend to be positively correlated






5. Make investments that are economically justified






6. Specify the discount rate






7. Perform supplementary analyses






8. Compare the alternatives






9. Money has a time value






10. Identify the investment alternatives






11. Choose the mutually exclusive investment alternative that maximizes economic worth






12. Estimate the cash flows






13. Select the preferred investment






14. To move money backward one time unit - DIVIDE by one plus the discount or interest rate






15. Past costs are irrelevant in engineering economic analyses - unless they impact future costs






16. To move money forward one time unit - MULTIPLY by one plus the discount or interest rate






17. Money has a time value






18. Two investment alternatives are equivalent if they have the same economic worth






19. Marginal revenue must exceed marginal cost






20. Money should continue to be invested as long as each additional increment of investment yields a return that is greater than the investor's time value of money






21. Consider only differences in cash flows among investment alternatives