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






2. Select the preferred investment






3. Compare investment alternatives over a common period of time






4. Specify the discount rate






5. Estimate the cash flows






6. Identify the investment alternatives






7. Risks and returns tend to be positively correlated






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






9. Perform supplementary analyses






10. Compare the alternatives






11. Make investments that are economically justified






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






13. 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






14. Consider only differences in cash flows among investment alternatives






15. Define the planning horizon






16. Marginal revenue must exceed marginal cost






17. Money has a time value






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






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






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






21. Money has a time value