Test Bank for Engineering Economics: Financial Decision Making for Engineers (Canadian 6th Edition) – Complete Collection

Test Bank for Engineering Economics Financial
Decision Making for Engineers Canadian 6th
edition

,Engineering Economics, 6e (Fraser/Pirnia)
Chapter 1 Engineering Decision Making

1.1 Multiple Choice Questions

1) Evaluation of an engineering project involves the following constraints
A) financial, environmental, social and political constraints.
B) technical and financial constraints.
C) technological and social constraints.
D) time and money constraints.
E) budget and time constraints.
Answer: A
Diff: 1 Type: MC Page Ref: 3
Topic: 1.1. Engineering decision making
Skill: Recall
Type: Qualitative

2) Engineering economics is
A) a body of knowledge to determine which of several alternative is technically best.
B) a collection of techniques for quantitative analysis to select a preferable alternative from
several technically viable ones.
C) a set of tools to calculate an engineering project's costs.
D) a set of rules to evaluate an engineering project.
E) a set of methods to determine an engineering project's costs in terms of time value of money.
Answer: B
Diff: 1 Type: MC Page Ref: 3
Topic: 1.2. What is engineering economics
Skill: Recall
Type: Qualitative

3) From an economic standpoint, any engineering project can be thought of in terms of
A) its costs and benefits over time.
B) its constraints.
C) its receipts and disbursements.
D) its revenues and profits over time.
E) its investment and costs over time.
Answer: A
Diff: 1 Type: MC Page Ref: 3
Topic: 1.2. What is engineering economics
Skill: Recall
Type: Qualitative




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,4) In the context of your textbook, abstraction means
A) a study.
B) a method.
C) a methodology.
D) a model.
E) an approach.
Answer: D
Diff: 1 Type: MC Page Ref: 6
Topic: 1.4. Dealing with abstractions
Skill: Recall
Type: Qualitative

5) When an engineer prepares a feasibility study, what economic information must she possess in
order to do it correctly?
A) engineering specification
B) expert opinion about this project
C) macroeconomic situation in the world
D) potential future costs and benefits of the project
E) the level of uncertainty
Answer: D
Diff: 2 Type: MC Page Ref: 6
Topic: 1.4. Dealing with abstractions
Skill: Applied
Type: Qualitative

6) In which of the following problems do you need engineering economics?
A) to choose a course in your program
B) to chose the right textbook
C) to decide whether to borrow money from parents or from a bank
D) to decide whether or not to buy a car
E) to decide where to spend summer vacation
Answer: C
Diff: 2 Type: MC Page Ref: 6-8
Topic: 1.4. Dealing with abstractions
Skill: Applied
Type: Qualitative




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© 2017 Pearson Canada Inc.

, 7) Which of the following statements best describes the moral issues faced by engineers while
evaluating projects?
A) moral issues are clearly defined in engineering design
B) moral issues do not matter as long as technical goals are achieved
C) your employer is the only person who can define what is ethical or unethical
D) there are no general answers to moral questions
E) since moral issues are value judgements they must not be taken into consideration
Answer: D
Diff: 3 Type: MC Page Ref: 9-10
Topic: 1.5. The moral question: Three true stories
Skill: Applied
Type: Qualitative

8) The best way to find some answers to difficult moral questions in engineering design and
project evaluation is
A) to ask your friends.
B) to consult professional engineering associations.
C) to search the web.
D) to read newspapers.
E) to read professional textbooks.
Answer: B
Diff: 2 Type: MC Page Ref: 9-10
Topic: 1.5. The moral question: Three true stories
Skill: Recall
Type: Qualitative

9) Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is
A) $5 100.
B) 102%.
C) $100.
D) 2%.
E) $5 000.
Answer: C
Diff: 2 Type: MC Page Ref: 6-8
Topic: 1.4. Dealing with abstractions
Skill: Applied
Type: Quantitative