Engineering Economics MCQs

Question 1

What is considered as the standard unit which forms the basis of a country’s domestic money supply?

Accepted Answer

Foreign exchange

Answer

Monetary unit

Answer

Currency

Answer

Cash or check

Question 2

Which one of the following definitions is correct?

Accepted Answer

All of these

Answer

The ratio of total debt to share holder's equity is called 'debt ratio'

Answer

The ratio debt-to-total assets is called Debt-to-total assets ratio

Answer

The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period is called interest coverage ratio

Question 3

Which one of the following is included in financial ratios of the firm?

Accepted Answer

All of these

Answer

Profitability ratio

Answer

Liquidity ratio

Answer

Turnover ratio

Question 4

Is an artificial being created by operation of law, having the right of succession and the process, attributes and properties expressly authorized by the law or incident to its existence.

Accepted Answer

Corporation

Answer

Property

Answer

Partnership

Answer

Organization

Question 5

Which one of the following questions is relevant to the construction estimates?

Accepted Answer

All of these

Answer

Did the estimators precisely evaluate site conditions

Answer

Did the estimators use short cut methods which may be unrealistic in their situation

Answer

How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

Question 6

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?

Accepted Answer

Straight line method

Answer

Sinking fund method

Answer

Sum-of-year digit method

Answer

Declining balance method

Question 7

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?

Accepted Answer

Time value of money

Answer

Present worth factor

Answer

Interest rate

Answer

Yield

Question 8

What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?

Accepted Answer

Commodity

Answer

Utility

Answer

Necessity

Answer

Stock

Question 9

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

Accepted Answer

Earning value

Answer

Total fair value

Answer

Total market value

Answer

Going concern value