SPSPM’s NBN Sinhgad College of Engineering, Solapur

Class: BE(Mech)-II ECONOMICS FOR ENGINEERS (Free Ele-II) (Prof. K S Mangrulkar)

THEORY QUESTION BANK FOR MAIN PAPER (SUBJECTIVE)

SECTION-I
Chapter 1 Fundamentals of Engineering Economics

1. Explain scope of Engg. Economics. (6-8)

2. Explain Law of demand & determinants of demand. (6-8)
3. Explain law of supply & relationship between demand & supply. (6-8)
4. Define PED & explain its types. (6-8)
5. Explain IED with examples. (5-7)
6. Explain CPED with suitable examples. (4-6)
7. Explain Indifference Curves & state their properties. (5-8)
8. What do you mean by C.S. & P.S.? Discuss with the help of graphs. (5-8)
9. Explain the following terms in brief.
(i) Economic efficiency (ii) Static efficiency (iii) Allocative efficiency (iv) Productive efficiency (2 each)
10. What do you mean by equilibrium price & equilibrium quantity? Explain with demand-supply curve. (4-6)
11. What do you mean by Giffen goods? Discuss with suitable examples. (4-6)
12. What do you mean by inferior & superior goods? Discuss how they are related to price & income of consumers
with suitable examples. (5-8)
13. What is elasticity? Explain various concepts of elasticity and discuss the practical significance of the concepts in
decision making. (14)
14. What is Engg. economics? Discuss scope of Engg. economics. (14)

Chapter 2 Cost Estimation & Break Even Analysis

1. Explain implicit & explicit costs. (4-6)
2. Explain current & historical costs with examples. (4-6)
3. Explain with graph short run and long run costs. (5-8)
4. Explain in brief (i) fixed cost (ii) variable cost (iii) total cost (iii) marginal cost (iv) sunk cost (2 each)
5. Explain direct & indirect costs with suitable examples. (5-7)
6. Explain Break Even Analysis with the help of a graph. (8-10)
7. What do you mean by total revenue & marginal revenue? (4-5)
8. What do you mean by expenses or overheads? (4-6)
9. Explain (i) Prime cost (ii) Factory cost (iii) Production cost (iv) Total cost. (2 each)
10. Explain with a graph short run and long run costs. OR Explain ATC Curve. (4-8)
11. What is break-even point? Discuss its importance. (6-8)
12. Explain the terms Total Cost (TC), Average Cost (AC) & Marginal Cost (MC) with suitable examples.
Why is long run average cost curve U shaped? (13)

Chapter 3 Time Value of Money

1. Explain Time Value of money. (4)
2. Explain Present worth method. (4-6)
3. Explain Future worth method. (4-6)
4. Explain Annual equivalent method. (4-6)
5. Explain Rate of Return method. (4-6)
6. What do you mean by sinking fund? Explain uniform series compound interest formula. (4-6)
 SECTION-II
Chapter 4 Make or Buy Decision & Process Engineering
1. Write a note on make or buy decision. (6-8)
2. Discuss design selection for a product. (6-8)
3. Discuss economic make or buy decision. (5-6)
4. Explain material selection process. (5-7)
5. Write a note on elementary economic analysis. (4-6)
6. What do you mean by make or buy decision? Explain its importance in an Engg. firm. (6-8)
7. Explain the various factors affecting make or buy decision. (6-8)
8. Explain graphically the BEP in case of make or buy decision. (6-8)
7. What do you mean by Process Engineering? Explain various steps in it. (8-13)
8. Explain factors affecting raw material selection and why is substitution for raw material required? (6-8)
9. Write a note on process and equipment selection. (5-7)
10. What do you mean by process modification and why is it needed? (6-8)
11. What do you mean by design modification and why is it needed? (6-8)
12. Explain the functional aspects of make or buy decision. (6-8)

Chapter 5 Maintenance management & Replacement Analysis

1. State significance of maintenance management and explain its objectives. (6-8)
2. Explain graphically, cost of maintenance. (4-6)
3. Describe classification of maintenance activities or practices. (5-7)
4. Write a note on C.B.M. (6-8)
5. What are the advantages and limitations of failure statistics. (4-6)
6. What are the types of failure and strategies to avoid them? (4-5)
7. What do you mean by a challenger and a defender? State the reasons for replacement of an asset? (6-8)
8. Explain various lives of an asset? (4-6)
9. Write a short note on replacement of existing assets. (4-5)
10. Discuss determination of economic life of an asset. (4-5)
11. Explain types of replacement problems. (5-6)
12. Discuss the effects of inflation. (6-8)
13. Write a note on capital recovery with return. (4-6)
14. State effects of inflation on capital. (3-4)

Chapter 6 Project Life Cycle Management, CBA, CEA, Resource & Risk management
1. Explain various phases of project life cycle. (5-6)
2. Explain the factors considered for project selection. (5-7)
3. What do you mean by a project? What are the essential features of a project? (4-6)
4. Explain various types of projects. (4-6)
5. Explain with a block diagram, Project life cycle management. (6-10)
6. Write a note on CBA. (5-8)
7. Write a note on CEA. (5-8)
8. Write a note on resource management. (5-8)
9. Write a note on risk management. (5-8)
10. What do you mean by a risk in an industry? What are various types of risks? (4-6)
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