Correct option is B
All the statements provided in the options are correct descriptions of engineering economy. Engineering economy is a field of study that applies economic principles to the decision-making process in engineering projects, helping to evaluate the most cost-effective solutions.
1. Engineering economy is a collection of mathematical techniques which simplify economic comparisons:
Engineering economy uses mathematical techniques to make it easier to compare different economic alternatives.
2. Engineering economy is a decision assistance tool by which one method will be chosen as the most economical one:
It helps engineers make informed decisions by comparing costs, benefits, and other factors to choose the most economical method.
3. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy:
A basic understanding of economic terminology and concepts is essential to grasp engineering economy principles.
