Ce40 E01 CPR1 Chua
Ce40 E01 CPR1 Chua
ACTIVITY
CPR # 1
Terminologies to be defined:
1. Economics to process, or to resale them.
- It is not just about money making or 6. Necessities
the distribution of money, economics - These are goods that the consumer
is a broad discipline that allows will buy regardless of the changes in
people to understand historical their income. Samples are food,
trends, headlines and to create clothing, etc.
predictions in the coming years. 7. Luxuries
2. Engineering Economy (and who is the - These products are not necessarily
Father?) needed but are wanted by
- It Is the application of economic consumers either for its quality or to
techniques in operational level to sustain their wealth status. Examples
evaluate designs and engineering are designer bags, luxurious cars,
alternatives. etc.,
- The father of Engineering Economy is 8. Demand
Eugene L. Grant who published the - It is an economic principle referring
first Engineering Economy textbook. to a consumer's desire to purchase
3. Engineering Economic Analysis (and goods and services and willingness
who is the Founder?) to pay a price for a specific good or
4. Consumer Goods / Services service.
- These are products or services 9. Supply
bought and used by the consumers. - It is a fundamental economic
5. Producer Goods / Services concept that describes the total
- These products or services are amount of a specific good or service
bought by manufacturing that is available to consumers.
companies to create other products,
10. Elastic Demand product in the market.
- It refers to how sensitive the demand 15. Oligopoly
for a good is to changes in other - It is a market structure with a small
economic variables, such as prices number of firms, none of which can
and consumer income. keep the others from having
11. Inelastic Demand significant influence.
- It is when people buy about the 16. Law of Supply and Demand
same amount whether the price - It is a theory that explains the
drops or rises. interaction between the sellers of a
12. Unitary Elasticity resource and the buyers for that
- A situation that occurs when the resource.
price elasticity of demand is equal to 17. Law of Diminishing Returns
negative one. - It states that as one input variable is
13. Perfect Competition increased, there is a point at which
- It is a theoretical market structure in the marginal increase in output
which the following criteria are met: begins to decrease, holding all other
All firms sell an identical product (the inputs constant.
product is a "commodity" or 18. Valuation
"homogeneous"). - It is the analytical process of
14. Monopoly determining the current (or
- A market structure characterized by projected) worth of an asset or a
a single seller, selling a unique company.