Engineering Economics Test Bank (5th Edition) – Financial Decision Making for Engineers – Multiple Choice & Short Answer Questions

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

, TEST Bank 5t




Engineering Economics
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6th Edition
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Niall5tM.5tFraser


Elizabeth5tM.5tJewkes


Mehrdad5tPirnia

,Engineering5tEconomics,5t6e5t(Fraser/Pirnia)5t
Chapter5t15 t Engineering5tDecision5tMaking

1.1 Multiple5tChoice5tQuestions

1) Evaluation5tof5tan5tengineering5tproject5tinvolves5tthe5tfollowing5tconstraints
A) financial,5tenvironmental,5tsocial5tand5tpolitical5tconstraints.
B) technical5tand5tfinancial5tconstraints.
C) technological5tand5tsocial5tconstraints.
D) time5tand5tmoney5tconstraints.
E) budget5tand5ttime5tconstraint
s.5tAnswer:5 t A
Diff:5t1 Type:5tMC
Page5tRef:5t35tTopic:5t1.1.5tEngi
neering5tdecision5tmaking5tSkill:5 t Recall
Type:5 t Qualitative

2) Engineering5teconomics5tis
A) a5tbody5tof5tknowledge5tto5tdetermine5twhich5tof5tseveral5talternative5tis5ttechnically5tbest.
B) a5tcollection5tof5ttechniques5tfor5tquantitative5tanalysis5tto5tselect5ta5tpreferable5talternative5
tfrom5tseveral5ttechnically5tviable5tones.

C) a5tset5tof5ttools5tto5tcalculate5tan5tengineering5tproject's5tcosts.
D) a5tset5tof5trules5tto5tevaluate5tan5tengineering5tproject.
E) a5tset5tof5tmethods5tto5tdetermine5tan5tengineering5tproject's5tcosts5tin5tterms5tof5ttime5tvalue5tof5t
money.5tAnswer:5 t B
Diff:5t1 Type:5tMC Page5tRef:5t3
Topic:5t1.2.5tWhat5tis5tengineering5teconomics5tS
kill:5 t Recall
Type:5 t Qualitative

3) From5tan5teconomic5tstandpoint,5tany5tengineering5tproject5tcan5tbe5tthought5tof5tin5tterms5tof
A) its5tcosts5tand5tbenefits5tover5ttime.
B) its5tconstraints.
C) its5treceipts5tand5tdisbursements.
D) its5trevenues5tand5tprofits5tover5ttime.
E) its5tinvestment5tand5tcosts5tover5tti
me.5tAnswer:5 t A
Diff:5t1 Type:5tMC Page5tRef:5t3
Topic:5t1.2.5tWhat5tis5tengineering5teconomics5tS
kill:5 t Recall
Type:5 t Qualitative




1
©5t20175tPearson5tCanada5tI
nc.

, 4) In5tthe5tcontext5tof5tyour5ttextbook,5tabstraction5tmeans
A) a5tstudy.
B) a5tmethod.
C) a5tmethodology.
D) a5tmodel.
E) an5tapproach
.
Answer:5 t D
Diff:5t1 Type:5tMC
Page5tRef:5t65tTopic:5t1.4.5t
Dealing5twith5tabstractions5tSkill:5 t R
ecall
Type:5 t Qualitative

5) When5tan5tengineer5tprepares5ta5tfeasibility5tstudy,5twhat5teconomic5tinformation5tmust5tshe5tposs
ess5tin5torder5tto5tdo5tit5tcorrectly?
A) engineering5tspecification
B) expert5topinion5tabout5tthis5tproject
C) macroeconomic5tsituation5tin5tthe5tworld
D) potential5tfuture5tcosts5tand5tbenefits5tof5tthe5tproject
E) the5tlevel5tof5tuncertaint
y5tAnswer:5 t D
Diff:5t2 Type:5tMC
Page5tRef:5t65tTopic:5t1.4.5t
Dealing5twith5tabstractions5tSkill:5 t A
pplied
Type:5 t Qualitative

6) In5twhich5tof5tthe5tfollowing5tproblems5tdo5tyou5tneed5tengineering5teconomics?
A) to5tchoose5ta5tcourse5tin5tyour5tprogram
B) to5tchose5tthe5tright5ttextbook
C) to5tdecide5twhether5tto5tborrow5tmoney5tfrom5tparents5tor5tfrom5ta5tbank
D) to5tdecide5twhether5tor5tnot5tto5tbuy5ta5tcar
E) to5tdecide5twhere5tto5tspend5tsummer5tvacati
on5tAnswer:5 t C
Diff:5t25tType:5tMC5tPage5tRef:5t6-
85tTopic:5t1.4.5tDealing5twith5tabstract
ions5tSkill:5 t Applied
Type:5 t Qualitative




2
©5t20175tPearson5tCanada5tI
nc.