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. Choose the mutually exclusive investment alternative that maximizes economic worth






3. Consider only differences in cash flows among investment alternatives






4. Define the planning horizon






5. 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






6. Specify the discount rate






7. Make investments that are economically justified






8. Money has a time value






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






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






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






12. Perform supplementary analyses






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






14. Estimate the cash flows






15. Compare the alternatives






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






17. Identify the investment alternatives






18. Marginal revenue must exceed marginal cost






19. Select the preferred investment






20. Risks and returns tend to be positively correlated






21. Money has a time value