q-7

thori mehnet khud bhi kar lo

q-8

Engineering economics, previously known as engineering economy, is a subset of economics for

application to engineering projects. Engineers seek solutions to problems, and the economic viability
of each potential solution is normally considered along with the technical aspects. Fundamentally,
engineering economics involves formulating, estimating, and evaluating the economic outcomes
when alternatives to accomplish a defined purpose are available.[1]
Costs as well as revenues are considered, for each alternative, for an analysis period that is either a
fixed number of years or the estimated life of the project. The salvage value is often forgotten, but is
important, and is either the net cost or revenue for decommissioning the project.

q-9

In microeconomics, supply and demand is an economic model of price determination in a market. It

concludes that in a competitive market, theunit price for a particular good will vary until it settles at a
point where the quantity demanded by consumers (at current price) will equal the quantity supplied
by producers (at current price), resulting in an economic equilibrium for price and quantity.

q-10
1.

In economics, moral hazard occurs when one person takes more risks because
someone else bears the burden of those risks. A moral hazardmay occur where the
actions of one party may change to the detriment of another after a financial transaction
has taken place.
In economic theory, imperfect competition is a type of market structure showing some but not
all features of competitive markets.

The law of demand states that, other things remaining same, the quantity demanded of a good
increases when its price falls and vice-versa
A monopoly (from Greek monos (alone or single) + polein (to sell)) exists when a
specific person or enterprise is the only supplier of a particular product.

q-11
Money is any item or verifiable record that is generally accepted as payment for goods and
services and repayment of debts in a particularcountry or socio-economic context.[1][2][3] The main
functions of money are distinguished as: a medium of exchange; a unit of account; a store of value;
and, perhaps, a standard of deferred payment.[4][5] Any item or verifiable record that fulfills these
functions can be considered money.
Money is historically an emergent market phenomenon establishing a commodity money, but nearly
all contemporary money systems are based on fiat money.[4] Fiat money, like any check or note of
debt, is without intrinsic use value as a physical commodity. It derives its value by being declared by
a government to be legal tender; that is, it must be accepted as a form of payment within the
boundaries of the country, for "all debts, public and private".[citation needed] Such laws in practice cause fiat
money to acquire the value of any of the goods and services that it may be traded for within the
nation that issues it.
The money supply of a country consists of currency (banknotes and coins) and usually
includes bank money (the balance held in checking accounts and savings accounts). Bank money,
which consists only of records (mostly computerized in modern banking), forms by far the largest
part of broad money in developed countries.[6][7][8]

q-12
Good's own price: The basic supply relationship is between the price of a good and the
quantity supplied. Although there is no "Law of Supply", generally, the relationship is positive,
meaning that an increase in price will induce an increase in the quantity supplied. [2]
Prices of related goods:[2] For purposes of supply analysis related goods refer to goods
from which inputs are derived to be used in the production of the primary good. For example,
Spam is made from pork shoulders and ham. Both are derived from pigs. Therefore pigs
would be considered a related good to Spam. In this case the relationship would be negative
or inverse. If the price of pigs goes up the supply of Spam would decrease (supply curve
shifts left) because the cost of production would have increased. A related good may also be
a good that can be produced with the firm's existing factors of production. For example,
suppose that a firm produces leather belts, and that the firm's managers learn that leather
pouches for smartphones are more profitable than belts. The firm might reduce its production

of belts and begin production of cell phone pouches based on this information. Finally, a
change in the price of a joint product will affect supply. For example beef products and anani
sikim leather are joint products. If a company runs both a beef processing operation and a
tannery an increase in the price of steaks would mean that more cattle are processed which
would increase the supply of leather.[3]
Conditions of production: The most significant factor here is the state of technology. If
there is a technological advancement in one good's production, the supply increases. Other
variables may also affect production conditions. For instance, for agricultural goods, weather
is crucial for it may affect the production outputs. [4]
Expectations: Sellers' are concerning future market conditions can directly affect supply.[5] If
the seller believes that the demand for his product will sharply increase in the foreseeable
future the firm owner may immediately increase production in anticipation of future price
increases. The supply curve would shift out. [6]
Price of inputs: Inputs include land, labor, energy and raw materials. [7] If the price of inputs
increases the supply curve will shift left as sellers are less willing or able to sell goods at any
given price. For example, if the price of electricity increased a seller may reduce his supply of
his product because of the increased costs of production. [6]
Number of suppliers: The market supply curve is the horizontal summation of the individual
supply curves. As more firms enter the industry the market supply curve will shift out driving
down prices.
Government policies and regulations: Government intervention can have a significant
effect on supply.[8] Government intervention can take many forms including environmental
and health regulations, hour and wage laws, taxes, electrical and natural gas rates and
zoning and land use regulations.[9]
q-13
The four basic laws of supply and demand are:[1]:37
1. If demand increases (demand curve shifts to the right) and supply remains unchanged, a
shortage occurs, leading to a higher equilibrium price.
2. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a
surplus occurs, leading to a lower equilibrium price.
3. If demand remains unchanged and supply increases (supply curve shifts to the right), a
surplus occurs, leading to a lower equilibrium price.
4. If demand remains unchanged and supply decreases (supply curve shifts to the left), a
shortage occurs, leading to a higher equilibrium price.