Civil Engineering

Engineering Economics MCQs

Practice Engineering Economics MCQs for competitive exams.

Engineering Economics MCQs

Practice questions from this topic.

Using factor method, the depletion at any given year is equal to:

  1. A. Initial cost of property times number of unit sold during the year divided by the total units in property
  2. B. Initial cost of property divided by the number of units sold during the year
  3. C. Initial cost of property times number of units sold during the year
  4. D. Initial cost of property divided by the total units in property
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What refers to the need, want or desire for a product backed by the money to purchase it?

  1. A. Supply
  2. B. Demand
  3. C. Product
  4. D. Good
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Perfect monopoly exists only if:

  1. A. the single vendor can prevent the entry of all other vendors in the market
  2. B. the single vendor gets the absolute franchise of the product
  3. C. the single vendor is the only one who has the permit to sell
  4. D. the single vendor is the only one who has the knowledge of the product
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What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?

  1. A. Capitalized cost method
  2. B. Present worth method
  3. C. Annual cost method
  4. D. MARR
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A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

  1. A. 9.01 %
  2. B. 9.14 %
  3. C. 9.31 %
  4. D. 9.41 %
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It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

  1. A. 16.02 %
  2. B. 16.28 %
  3. C. 16.32 %
  4. D. 16.47 %
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The financial health of the company is measured in terms of:

  1. A. Liquidity
  2. B. Solvency
  3. C. Relative risk
  4. D. All of the above
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What refers to the present worth of the probable future net earnings?

  1. A. Total fair value
  2. B. Total market value
  3. C. Going concern value
  4. D. Earning value
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What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?

  1. A. Utility
  2. B. Necessity
  3. C. Commodity
  4. D. Stock
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What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

  1. A. Present worth factor
  2. B. Interest rate
  3. C. Time value of money
  4. D. Yield
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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?

  1. A. Straight line method
  2. B. Sinking fund method
  3. C. Sum-of-year digit method
  4. D. Declining balance method
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Which one of the following questions is relevant to the construction estimates?

  1. A. Did the estimators precisely evaluate site conditions
  2. B. Did the estimators use short cut methods which may be unrealistic in their situation
  3. C. How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost
  4. D. All of these
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