1. Conclusions reached through economic valuation are subject to change over time.
True
False
2. The rational decision making process consists of six steps which must always be followed in every decision making problem.
True
False
3. Which of the following statements is not one of the fundamental principles of engineering economics?
A. Receiving a dollar today is worth more than a dollar received in the future.
B. To expect a higher return on investment, you need to take a higher risk.
C. Marginal revenue must exceed marginal cost to justify any production.
D. When you are comparing different alternatives. you must not focus on only differences in alternatives.
4. Which of the following statements is incorrect?
A. Economic decisions are time invarient.
B. Time and risk are the most important factors in any investment evaluation.
C. For a large scale engineering project. engineers must consider the impact of the project on the company's financial statements.
D. One of the primary roles of engineers is to make capital expenditure decisions.
5. The only goal of an engineering project is to generate profits.
True
False
6. The focus of the book is to evaluate engineering projects based on the merits of economic desirability and the respective firm's investment climate.
True
False
7. Which or the following statements defines the discipline of engineering economics most closely?
A. Economic decisions made by engineers.
B. Economic decisions related to financial assets.
C. Economic decisions primarily for real assets and services from engineering projects.
D. Any economic decision related to the time value of money.
8. Capital expenditures are often for the purchase of equipment.
True
False
9. A "risk-oit trade" typically involves buying bonds and selling stocks.
True
False