Engineering Economics MCQs

Question 1

What is another term for “current assets”?

Accepted Answer

Liquid assets

Answer

Fixed assets

Answer

Non-liquid assets

Answer

Ccash

Question 2

What is the ordinary interest on P1,500.50 for 182 days at 5.2%?

Accepted Answer

P39.45

Answer

P39.01

Answer

P39.82

Answer

P39.99

Question 3

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

Accepted Answer

Sinking fund method

Answer

Straight line method

Answer

Sum-of-year digit method

Answer

Declining balance method

Question 4

What is another term for “acid-test ratio”?

Accepted Answer

Quick ratio

Answer

Current ratio

Answer

Profit margin ratio

Answer

Price-earnings ratio

Question 5

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

Accepted Answer

Supply

Answer

Demand

Answer

Product

Answer

Good

Question 6

What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?

Accepted Answer

Rate of interest

Answer

Yield rate

Answer

Rate of return

Answer

Economic return

Question 7

What is the market situation exist when there are many buyers and many sellers?

Accepted Answer

Perfect competition

Answer

Oligopoly

Answer

Oligopsony

Answer

Monopoly

Question 8

The product of CAF (SP) and PWF (SP) is:

Accepted Answer

$$1$$

Answer

$$\frac{1}{2}$$

Answer

$$\frac{1}{3}$$

Answer

$$\frac{1}{4}$$

Question 9

In a cash-flow diagram:

Accepted Answer

All of these

Answer

Time 0 is considered to be the present

Answer

Time 1 is considered to be the end of time period 1

Answer

A vertical arrow pointing up indicates a positive cash flow