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Engineering Economics Financial Decision Making for Engineers
by Niall M. Fraser, Elizabeth M. Jewkes
7th Canadian Edition
,Engineering Economics, 7e (Fraser)
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
User1: 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
User1: 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
User1: Qualitative
,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
User1: 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
User1: 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
User1: Qualitative
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
User1: 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
User1: 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
User1: Quantitative
10) Joan Borrowed $1 000 One Year Ago. Now She Has To Repay $1 100. Therefore, The
Interest Rate She Pays Is
A) $1 000
B) $1 100
C) $100
D) 110%
E) 10%
Answer: E
Diff: 2 Type: MC Page Ref: 6-8
Topic: 1.4. Dealing With
Abstractions Skill: Applied
User1: Quantitative
11) All But One Of The Following Are Economic Criteria To Evaluate An Engineering Project.
Which One Is The Non-Economic Criterion?
A) Maximum Profit
B) Minimum Cost
C) Minimum Pollution
D) Maximum Rate Of Return
E) Minimum Payback
Period Answer: C
Diff: 2 Type: MC Page Ref: 2-6
Topic: 1.2. What Is Engineering
Economics Skill: Applied
User1: Qualitative
12) Analyze The Following Statement: "There Is 50% Probability Of Raining". This Statement
Concerns
Engineering Economics Financial Decision Making for Engineers
by Niall M. Fraser, Elizabeth M. Jewkes
7th Canadian Edition
,Engineering Economics, 7e (Fraser)
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
User1: 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
User1: 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
User1: Qualitative
,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
User1: 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
User1: 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
User1: Qualitative
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
User1: 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
User1: 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
User1: Quantitative
10) Joan Borrowed $1 000 One Year Ago. Now She Has To Repay $1 100. Therefore, The
Interest Rate She Pays Is
A) $1 000
B) $1 100
C) $100
D) 110%
E) 10%
Answer: E
Diff: 2 Type: MC Page Ref: 6-8
Topic: 1.4. Dealing With
Abstractions Skill: Applied
User1: Quantitative
11) All But One Of The Following Are Economic Criteria To Evaluate An Engineering Project.
Which One Is The Non-Economic Criterion?
A) Maximum Profit
B) Minimum Cost
C) Minimum Pollution
D) Maximum Rate Of Return
E) Minimum Payback
Period Answer: C
Diff: 2 Type: MC Page Ref: 2-6
Topic: 1.2. What Is Engineering
Economics Skill: Applied
User1: Qualitative
12) Analyze The Following Statement: "There Is 50% Probability Of Raining". This Statement
Concerns
