,EngineeringlEconomics,l5el(Fraser)lChapter
l1l EngineeringlDecisionlMaking
1.1 MultiplelChoicelQuestions
1) Evaluationloflanlengineeringlprojectlinvolveslthelfollowinglconstraints:
A) financial,lenvironmental,lsociallandlpoliticallconstraints.
B) technicallandlfinanciallconstraints.
C) technologicallandlsociallconstraints.
D) timelandlmoneylconstraints.
E) budgetlandltimelconstraints.l
Answer:l A
Diff:l1 Type:lMC
PagelRef:l3l Topic:l 1.1.lEngineer
ingldecisionlmakinglSkill:l Recall
User1:l Qualitative
2) Engineeringleconomicslis
A) albodyloflknowledgeltoldeterminelwhichloflseverallalternativelisltechnicallylbest.
B) alcollectionlofltechniqueslforlquantitativelanalysisltolselectlalpreferablelalternativelfromlseveralltech
nicallylviablelones.
C) alsetlofltoolsltolcalculatelanlengineeringlproject'slcosts.
D) alsetloflrulesltolevaluatelanlengineeringlproject.
E) alsetloflmethodsltoldeterminelanlengineeringlproject'slcostslinltermslofltimelvalueloflmoney.lAns
wer:l B
Diff:l1 Type:lMC PagelRef:l3
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Recall
User1:l Qualitative
3) Fromlanleconomiclstandpoint,lanylengineeringlprojectlcanlbelthoughtloflinltermslof
A) itslcostslandlbenefitsloverltime.
B) itslconstraints.
C) itslreceiptslandldisbursements.
D) itslrevenueslandlprofitsloverltime.
E) itslinvestmentlandlcostsloverltime.lA
nswer:l A
Diff:l1 Type:lMC PagelRef:l3
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Recall
User1:l Qualitative
,4) Inlthelcontextloflyourltextbook,labstractionlmeans
A) alstudy.
B) almethod
C) almethodology
D) almodel.
E) anlapproachl
Answer:l D
Diff:l1 Type:lMC
PagelRef:l6lTopic:l 1.4.lDeali
nglwithlabstractionslSkill:l Recall
User1:l Qualitative
5) Whenlanlengineerlprepareslalfeasibilitylstudy,lwhatleconomiclinformationlmustlshelpossesslinlorderltoldo
litlcorrectly?
A) engineeringlspecification
B) expertlopinionlaboutlthislproject
C) macroeconomiclsituationlinlthelworld
D) potentiallfuturelcostslandlbenefitsloflthelproject
E) thellevellofluncertaintyl
Answer:l D
Diff:l2 Type:lMC
PagelRef:l6lTopic:l 1.4.lDeali
nglwithlabstractionslSkill:l Applied
User1:l Qualitative
6) Inlwhichloflthelfollowinglproblemsldolyoulneedlengineeringleconomics?
A) tolchooselalcourselinlyourlprogram
B) tolchoselthelrightltextbook
C) toldecidelwhetherltolborrowlmoneylfromlparentslorlfromlalbank
D) toldecidelwhetherlorlnotltolbuylalcar
E) toldecidelwhereltolspendlsummerlvacationlA
nswer:l C
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Qualitative
7) Whichloflthelfollowinglstatementslbestldescribeslthelmorallissueslfacedlbylengineerslwhileleval
uatinglprojects?
A) morallissueslarelclearlyldefinedlinlengineeringldesign
B) morallissuesldolnotlmatterlasllonglasltechnicallgoalslarelachieved
C) yourlemployerlislthelonlylpersonlwholcanldefinelwhatlislethicallorlunethical
D) therelarelnolgenerallanswersltolmorallquestions
E) sincelmorallissueslarelvalueljudgementsltheylmustlnotlbeltakenlintolconsiderationlAns
wer:l D
Diff:l3 Type:lMC PagelRef:l9-10
Topic:l 1.5.lThelmorallquestion:lThreeltruelstorieslSkil
l:l Applied
User1:l Qualitative
8) Thelbestlwayltolfindlsomelanswersltoldifficultlmorallquestionslinlengineeringldesignlandlproject
, evaluationlis
A) tolasklyourlfriends.
B) tolconsultlprofessionallengineeringlassociations.
C) tolsearchlthelweb.
D) tolreadlnewspapers.
E) tolreadlprofessionalltextbooks.l
Answer:l B
Diff:l2 Type:lMC PagelRef:l9-10
Topic:l 1.5.lThelmorallquestion:lThreeltruelstorieslSkil
l:l Recall
User1:l Qualitative
9) Stanlborrowedl$5l000lonelyearlago.lNowlhelhasltolrepayl$5l100.lThelinterestlStanlpayslis
A) $5l100
B) 102%
C) $100
D) 2%
E) $5l000
Answer:l C
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Quantitative
10) Joanlborrowedl$1l000lonelyearlago.lNowlshelhasltolrepayl$1l100.lTherefore,lthelinterestlratelshelpaysli
s
A) $1l000
B) $1l100
C) $100
D) 110%
E) 10%
Answer:l E
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Quantitative
11) Alllbutloneloflthelfollowinglareleconomiclcriterialtolevaluatelanlengineeringlproject.lWhichlonelisltheln
on-economiclcriterion?
A) maximumlprofit
B) minimumlcost
C) minimumlpollution
D) maximumlrateloflreturn
E) minimumlpaybacklperiodl
Answer:l C
Diff:l2 Type:lMC PagelRef:l2-6
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Applied
User1:l Qualitative
12) Analyzelthelfollowinglstatement:l"Therelisl50%lprobabilityloflraining".lThislstatementlconcerns
l1l EngineeringlDecisionlMaking
1.1 MultiplelChoicelQuestions
1) Evaluationloflanlengineeringlprojectlinvolveslthelfollowinglconstraints:
A) financial,lenvironmental,lsociallandlpoliticallconstraints.
B) technicallandlfinanciallconstraints.
C) technologicallandlsociallconstraints.
D) timelandlmoneylconstraints.
E) budgetlandltimelconstraints.l
Answer:l A
Diff:l1 Type:lMC
PagelRef:l3l Topic:l 1.1.lEngineer
ingldecisionlmakinglSkill:l Recall
User1:l Qualitative
2) Engineeringleconomicslis
A) albodyloflknowledgeltoldeterminelwhichloflseverallalternativelisltechnicallylbest.
B) alcollectionlofltechniqueslforlquantitativelanalysisltolselectlalpreferablelalternativelfromlseveralltech
nicallylviablelones.
C) alsetlofltoolsltolcalculatelanlengineeringlproject'slcosts.
D) alsetloflrulesltolevaluatelanlengineeringlproject.
E) alsetloflmethodsltoldeterminelanlengineeringlproject'slcostslinltermslofltimelvalueloflmoney.lAns
wer:l B
Diff:l1 Type:lMC PagelRef:l3
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Recall
User1:l Qualitative
3) Fromlanleconomiclstandpoint,lanylengineeringlprojectlcanlbelthoughtloflinltermslof
A) itslcostslandlbenefitsloverltime.
B) itslconstraints.
C) itslreceiptslandldisbursements.
D) itslrevenueslandlprofitsloverltime.
E) itslinvestmentlandlcostsloverltime.lA
nswer:l A
Diff:l1 Type:lMC PagelRef:l3
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Recall
User1:l Qualitative
,4) Inlthelcontextloflyourltextbook,labstractionlmeans
A) alstudy.
B) almethod
C) almethodology
D) almodel.
E) anlapproachl
Answer:l D
Diff:l1 Type:lMC
PagelRef:l6lTopic:l 1.4.lDeali
nglwithlabstractionslSkill:l Recall
User1:l Qualitative
5) Whenlanlengineerlprepareslalfeasibilitylstudy,lwhatleconomiclinformationlmustlshelpossesslinlorderltoldo
litlcorrectly?
A) engineeringlspecification
B) expertlopinionlaboutlthislproject
C) macroeconomiclsituationlinlthelworld
D) potentiallfuturelcostslandlbenefitsloflthelproject
E) thellevellofluncertaintyl
Answer:l D
Diff:l2 Type:lMC
PagelRef:l6lTopic:l 1.4.lDeali
nglwithlabstractionslSkill:l Applied
User1:l Qualitative
6) Inlwhichloflthelfollowinglproblemsldolyoulneedlengineeringleconomics?
A) tolchooselalcourselinlyourlprogram
B) tolchoselthelrightltextbook
C) toldecidelwhetherltolborrowlmoneylfromlparentslorlfromlalbank
D) toldecidelwhetherlorlnotltolbuylalcar
E) toldecidelwhereltolspendlsummerlvacationlA
nswer:l C
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Qualitative
7) Whichloflthelfollowinglstatementslbestldescribeslthelmorallissueslfacedlbylengineerslwhileleval
uatinglprojects?
A) morallissueslarelclearlyldefinedlinlengineeringldesign
B) morallissuesldolnotlmatterlasllonglasltechnicallgoalslarelachieved
C) yourlemployerlislthelonlylpersonlwholcanldefinelwhatlislethicallorlunethical
D) therelarelnolgenerallanswersltolmorallquestions
E) sincelmorallissueslarelvalueljudgementsltheylmustlnotlbeltakenlintolconsiderationlAns
wer:l D
Diff:l3 Type:lMC PagelRef:l9-10
Topic:l 1.5.lThelmorallquestion:lThreeltruelstorieslSkil
l:l Applied
User1:l Qualitative
8) Thelbestlwayltolfindlsomelanswersltoldifficultlmorallquestionslinlengineeringldesignlandlproject
, evaluationlis
A) tolasklyourlfriends.
B) tolconsultlprofessionallengineeringlassociations.
C) tolsearchlthelweb.
D) tolreadlnewspapers.
E) tolreadlprofessionalltextbooks.l
Answer:l B
Diff:l2 Type:lMC PagelRef:l9-10
Topic:l 1.5.lThelmorallquestion:lThreeltruelstorieslSkil
l:l Recall
User1:l Qualitative
9) Stanlborrowedl$5l000lonelyearlago.lNowlhelhasltolrepayl$5l100.lThelinterestlStanlpayslis
A) $5l100
B) 102%
C) $100
D) 2%
E) $5l000
Answer:l C
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Quantitative
10) Joanlborrowedl$1l000lonelyearlago.lNowlshelhasltolrepayl$1l100.lTherefore,lthelinterestlratelshelpaysli
s
A) $1l000
B) $1l100
C) $100
D) 110%
E) 10%
Answer:l E
Diff:l2 Type:lMC PagelRef:l6-
8lTopic:l 1.4.lDealinglwithlabstractionsl
Skill:l Applied
User1:l Quantitative
11) Alllbutloneloflthelfollowinglareleconomiclcriterialtolevaluatelanlengineeringlproject.lWhichlonelisltheln
on-economiclcriterion?
A) maximumlprofit
B) minimumlcost
C) minimumlpollution
D) maximumlrateloflreturn
E) minimumlpaybacklperiodl
Answer:l C
Diff:l2 Type:lMC PagelRef:l2-6
Topic:l 1.2.lWhatlislengineeringleconomicslSkil
l:l Applied
User1:l Qualitative
12) Analyzelthelfollowinglstatement:l"Therelisl50%lprobabilityloflraining".lThislstatementlconcerns
