Introduction to Engineering Economy

Engineering is a branch of science.

• True

• False

Answer explanation

Engineering economy is the application of economic techniques to the evaluation of engineering _______.

Mention 2 situations in a chemical industry for engineering economy applications

Physical efficiency is always

• >1

• <1

• =0

• <0

Economic efficiency should be

• >1

• <1

• =0

• <0

Which is not a principle of Engineering Economy?

• Focus on differences

• Maximize profit

• Develop alternatives

• Use a common unit of measure

Rate of return is interest earned by_

• Investor

• Businesses

• Corporation

• Lender

Compound interest always earn ______ than simple interest.