engineering economy MCQs – Page 2

Practise focused engineering economy questions with marked answers for exam preparation and subject revision.

engineering economy Mcqs

21. What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents ?
0

A. Inflation

B. Deflation

C. Depreciation

D. Depletion

22. A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent ?
0

A. 6.65 %

B. 6.89%

C. 6.58%

D. 6.12%

23. What refers to the amount of a product made available for sale ?
0

A. Supply

B. Demand

C. Product

D. Good

24. A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?
0

A. P 2,000.00

B. P 2,200.00

C. P 2,100.00

D. P 2,300.00

25. What is the type of annuity where the payments are made at the end of each period starting from the first period ?
0

A. Deferred annuity

B. Ordinary annuity

C. Annuity due

D. Perpetuity

26. What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?
0

A. Depreciation recovery

B. After-tax recovery

C. Asset recovery

D. Period recovery

27. If there is only one seller and many buyers, the market situation is ______________________?
0

A. Oligopsony

B. Duopsony

C. Oligopoly

D. Monopoly

28. Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note?
0

A. P18,000

B. P18,900

C. P19,000

D. P19,100

29. Duopoly is a market situation where there is/are____________?
0

A. Many sellers and few buyers

B. Few sellers and few buyers

C. One seller and few buyers

D. Few sellers and many buyers

30. A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year ?
0

A. P700.12

B. P705.42

C. P693.12

D. P702.15

31. Using factor method, the depletion at any given year is equal to ?
0

A. Initial cost of property times number of units sold during the year

B. Initial cost of property times number of unit sold during the year divided by the total units in property

C. Initial cost of property divided by the number of units sold during the year

D. Initial cost of property divided by the total units in property

32. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?
0

A. 30.78%

B. 29.17 %

C. 30.12%

D. 28.33%

33. In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?
0

A. Sinking fund method

B. Declining balance method

C. Straight line method

D. Sum-of-year digit method

34. What refers to the present worth of the probable future net earnings ?
0

A. Earning value

B. Going concern value

C. Total market value

D. Total fair value

35. What refers to the amount of money paid for the use of borrowed capital ?
0

A. Simple interest

B. Rate of interest

C. Principal

D. Interest

36. What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?
0

A. Functional depreciation

B. Demand depreciation

C. Physical depreciation

D. Design depreciation

37. If there are many sellers and few buyers, the market situation is ______________________?
0

A. Oligopoly

B. Monopoly

C. Oligopsony

D. Duopsony

38. What refers to the market situation in which any given product is supplied by a very large number of vendors and there is no restriction against additional vendors from entering the market ?
0

A. Monopoly

B. Oligopoly

C. Perfect competition

D. Oligopsony

39. When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output. This statement is known as the______________?
0

A. Law of supply and demand

B. Law of supply

C. Law of demand

D. Law of diminishing return

40. What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?
0

A. Ordinary annuity

B. Annuity due

C. Perpetuity

D. Deferred annuity

Previous Next

Showing 21 to 40 of 198 mcqs