Engineering Economics MCQs

Question 1

Pick up the correct statement from the following:

Accepted Answer

All of these

Answer

The ratio of current assets, loans and advances, and the current liquidity is called current ratio

Answer

Larger the current ratio, larger is the margin of safety

Answer

The operating profit is the difference between gross profit and operating expenses

Question 2

Pick up the correct statement from the following:

Accepted Answer

All of these

Answer

The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios

Answer

The ratio of gross profit and net sales is called profitability in relation to sales ratio

Answer

The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio

Question 3

Pick up the correct statement from the following:

Accepted Answer

All of the above

Answer

The receipts and disbursements in a given time interval are referred to as cash flow

Answer

The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention

Answer

The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found

Question 4

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

Accepted Answer

All of these

Answer

To have a check on a definitive cost estimate

Answer

To check quotations from contractors and/or sub-contractors

Answer

To compute target estimate for the owner while drawing and specifications are in initial stage

Question 5

Pick up the main purpose of project cost control from the following:

Accepted Answer

All of these

Answer

To signal immediate warning of uneconomic operations

Answer

To provide a feed back to the estimator

Answer

To promote cost consciousness

Question 6

Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following?

Accepted Answer

Cost per linear metre method

Answer

Base unit method

Answer

Cost per function method

Answer

Cost per square metre method

Question 7

If there are many sellers and few buyers, the market situation is _________ .

Accepted Answer

Oligopsony

Answer

Duopsony

Answer

Oligopoly

Answer

Monopoly

Question 8

What is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human want?

Accepted Answer

Goods or commodities

Answer

Services

Answer

Goods

Answer

Commodities

Question 9

What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?

Accepted Answer

Services

Answer

Goods

Answer

Commodities

Answer

Goods or commodities