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Civil Engineering :: Engineering Economics

  1. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

  2. A.

     P 3,279.27

    B.

     P 3,927.27

    C.

     P 3,729.27

    D.

     P 3,792.72


  3. What is another term for “perfect competition”?

  4. A.

     Atomistic competition

    B.

     No-limit competition

    C.

     Free-for-all competition

    D.

     Heterogeneous market


  5. A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

  6. A.

     P 142,999.08

    B.

     P 143,104.89

    C.

     P 142,189.67

    D.

     P 143,999.08


  7. Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

  8. A.

     P18,000

    B.

     P18,900

    C.

     P19,000

    D.

     P19,100


  9. What is the feature of some bonds whereby the issuer can redeem it before it matures?

  10. A.

     Return clause

    B.

     Callability

    C.

     Recall clause

    D.

     Call class


  11. Present worth Annuity (PWA) is generally known as

  12. A.

     Premium annuities

    B.

     Income annuities

    C.

     Future annuities

    D.

     All of these


  13. A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

  14. A.

     2.590

    B.

     2,632

    C.

     2,712

    D.

     2,890


  15. Duopsony is a market situation where there is/are:

  16. A.

     Few sellers and few buyers

    B.

     Few sellers and many buyers

    C.

     Many sellers and few buyers

    D.

     One seller and few buyers


  17. Duopoly is a market situation where there is/are:

  18. A.

     Few sellers and few buyers

    B.

     Few sellers and many buyers

    C.

     Many sellers and few buyers

    D.

     One seller and few buyers


  19. What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%.

  20. A.

     P 150.56

    B.

     P 152.88

    C.

     P 153.89

    D.

     P 151.09