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Civil Engineering :: Engineering Economics

  1. The owner of the construction company makes use of the estimate:

  2. A.

     To determine the capital investment costs

    B.

     To assist in financial arrangements

    C.

     To determine economic feasibility of the project

    D.

     All of these


  3. What market situation exists where there is only one buyer and only one seller?

  4. A.

     Monopsony

    B.

     Monopoly

    C.

     Bilateral monopsony

    D.

     Bilateral monopoly


  5. What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

  6. A.

     Depletion

    B.

     Inflation

    C.

     Depreciation

    D.

     Deflation


  7. What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

  8. A.

     Functional depreciation

    B.

     Design depreciation

    C.

     Physical depreciation

    D.

     Demand depreciation


  9. Liquidity ratios are used:

  10. A.

     To measure a firm’s ability to meet short-cut obligations

    B.

     To compare short term obligations to short-term resources available to meet these obligations

    C.

     To obtain much insight into the present cash solvency of the firm and the firm

    D.

     All of these


  11. A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.

  12. A.

     11.50 %

    B.

     11.75 %

    C.

     11.95 %

    D.

     12.32 %


  13. Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.

  14. A.

     12.19 %

    B.

     12.03 %

    C.

     11.54 %

    D.

     10.29 %


  15. What bond whose security is a mortgage on certain specified assets of the corporation?

  16. A.

     Registered bond

    B.

     Collateral trust bond

    C.

     Mortgage bond

    D.

     Debenture bond


  17. In the cash-flow diagram shown in the given figure

  18. A.

     Equal deposits of Rs 3000 per year

    B.

     The rate of interest is 10% per year account

    C.

     The amount accumulated after the seventh deposit is to be computed

    D.

     All of these


  19. In the cash flow diagram shown in the given figure

  20. A.

     The first disbursement occurs at the end of year 2

    B.

     The second disbursement occurs at the end of year 4

    C.

     The first receipt occurs at the end of year 1

    D.

     All of these