CONTEMPORARY ENGINEERING ECONOMICS
PRACTICE EXAM 2026 PREMIUM QUESTIONS
AND ACCURATE ANSWERS ONE HUNDRED
PERCENT CORRECT
◉ What economic criterion goes with fixed input.
Answer: max benefits or other outputs
◉ What economic criterion goes with fixed output.
Answer: min costs or other inputs
◉ What economic criterion goes with neither input nor output
fixed?.
Answer: max profits (value of outputs - cost of inputs)
◉ 6. construct models.
Answer: -there are various elements that go into decision making
such as objective, relevant data, feasible alternatives, and selection
criterion
-constructing the interrelationships between the decision-making
elements is called model building or constructing the model
,◉ 7. predict the outcomes of each alternative.
Answer: -alternatives are comparable
-the consequences of alternatives are stated in the form of cost and
benefits
◉ 8. choosing best alternative.
Answer: -best alternative is chosen based on selected criterion
-intangible consequence (valued by judgement) must be considered
in this process
◉ 9. audit the results.
Answer: -did actual outcome match prediction?
-results of analysis agree with projections?
-if audit will occur -> projections likely to be more accurate
◉ In which of the following problems do you need engineering
economics?
A. to compare a 4-year and 5-year car loan
B. to decide whether a new or used car is cheaper
C. to decide whether to pay your car insurance quarterly or annually
D. all of the above
, E. none of the above.
Answer: D. all of the above
◉ Ethics.
Answer: distinguishing between right & wrong in decision making
Includes:
-establishing systems of beliefs, moral obligations
-defining values and fairness
-determining duty and guidelines for conduct
◉ What does the National Society of Professional Engineers (NSPE)
Code of Ethics say?.
Answer: Engineers, in the fulfillment of their professional duties,
shall:
-hold paramount the safety, health, welfare of the public
-perform services only in areas of competence
-issue public statements in an objective and truthful manner
-act for each employer as faithful agents or trustees
-avoid deceptive acts
-conduct themselves honorably, responsibly, ethically, lawfully so as
to enhance the honor, reputation, and usefulness of the profession
PRACTICE EXAM 2026 PREMIUM QUESTIONS
AND ACCURATE ANSWERS ONE HUNDRED
PERCENT CORRECT
◉ What economic criterion goes with fixed input.
Answer: max benefits or other outputs
◉ What economic criterion goes with fixed output.
Answer: min costs or other inputs
◉ What economic criterion goes with neither input nor output
fixed?.
Answer: max profits (value of outputs - cost of inputs)
◉ 6. construct models.
Answer: -there are various elements that go into decision making
such as objective, relevant data, feasible alternatives, and selection
criterion
-constructing the interrelationships between the decision-making
elements is called model building or constructing the model
,◉ 7. predict the outcomes of each alternative.
Answer: -alternatives are comparable
-the consequences of alternatives are stated in the form of cost and
benefits
◉ 8. choosing best alternative.
Answer: -best alternative is chosen based on selected criterion
-intangible consequence (valued by judgement) must be considered
in this process
◉ 9. audit the results.
Answer: -did actual outcome match prediction?
-results of analysis agree with projections?
-if audit will occur -> projections likely to be more accurate
◉ In which of the following problems do you need engineering
economics?
A. to compare a 4-year and 5-year car loan
B. to decide whether a new or used car is cheaper
C. to decide whether to pay your car insurance quarterly or annually
D. all of the above
, E. none of the above.
Answer: D. all of the above
◉ Ethics.
Answer: distinguishing between right & wrong in decision making
Includes:
-establishing systems of beliefs, moral obligations
-defining values and fairness
-determining duty and guidelines for conduct
◉ What does the National Society of Professional Engineers (NSPE)
Code of Ethics say?.
Answer: Engineers, in the fulfillment of their professional duties,
shall:
-hold paramount the safety, health, welfare of the public
-perform services only in areas of competence
-issue public statements in an objective and truthful manner
-act for each employer as faithful agents or trustees
-avoid deceptive acts
-conduct themselves honorably, responsibly, ethically, lawfully so as
to enhance the honor, reputation, and usefulness of the profession
