Civil engineer objective questions – Engineering Economics (Section-2)

26. The ratio of discounted benefit and discounted cost is called

a) discount ratio

b) B/C ratio

c) C/B ratio

d) none of the above

27. In a project selection, minimum B/C ratio should be

a) >1

b) <1

c) 0

d) equal to 1

28. In case of construction/production industry the cost of materialis normally

a) more than cost of labour

b) equal to cost of labour

c) less than cost of labour

d) none of the above

29. What is the element of total cost?

a) material &labour cost

b) labour& fuel cost

c) fuel & machine cost

d) all of the above

30. The average cost incurred in supplying a particular benefit over the entire life time of the project is called

a) project cost

b) average life cycle cost

c) maintenance cost

d) all of the above

31. The types of indirect cost which can’t measured and allocated to a specific output or work activity is called

a) project cost

b) prime cost

c) overhead cost

d) all of the above

32. Material cost is concerned with

a) direct cost

b) indirect cost

c) both (a) and (b) above

d) none of the above

33. The types of costing used to find the cost of non-standard jobs generally made according to customer’s specifications, is called

a) job costing

b) process costing

c) satisfaction costing

d) manufacture costing

34. The types of costing used to find out involved whileconverting a raw material to finished output, is called

a) job costing

b) process costing

c) satisfaction costing

d) manufacture costing

35. The change in any parameters of project due to change in any factor is called

a) sensitivity

b) resistivity

c) variation

d) costivity

36. The difference between actual cost of the project with the targeted cost is called

a) loss

c) variance

b) profit

d) all of the above

37. Find the direct wage rate variance if the actual working hours are 8, If the actual and standard working rate is 15 & 12 per hour respectively.

a) 24

b) 96

c) 120

d) 35

38. For the selection of any project the NPV should be

a) zero

b) less than 0

c) both (a) and (b) above

d) none of the above

39. MARR (Marginal Annual Rate of Return) is

a) benefit coming before investment

b) benefit coming after investment

c) neither benefit nor loss

d) all of the above

40.The numerical value of MARR is

a) equal to IRR

b) less than IRR

c) greater than IRR

d) all of the above

41. The difference of discounted benefit and cost is called

a) NPV

b) PV

c) benefit

d) all of the above

42. For Rs 500/-, what is the amount for 2014 AD if discounted rate 10% is

a) Rs. 275

b) Rs. 375

c) Rs. 425

d) Rs. 500

43. Find the future value of an amount deposited in banks for five years having Rs. 500. It has an annual compound interest rate of 10%.

a) Rs. 755.28

b) Rs.805.25

c) Rs.855.25

d) Rs.905.25

44. Find the present value of an amount Rs. 600, if annual interest rate is 10% and number of year is 5.

a) Rs.272.55

b) Rs.322.55

c) Rs.372.55

d) Rs.422.55

45. Assume a deposit of Rs. 200 is placed on a saving account atthe end of each year for 10 years. Annual interest is 8%. Findthe future value of an annuity.

a) Rs.2597

b) Rs.2697

c) Rs.2797

d) Rs.2897

46. Assume a deposit of Rs. 200 is placed on a saving account atthe end of each year for 10 years. Annual interest rate is 8%.Find the present value of annuity.

a) Rs.1342

b) Rs.1242

c) Rs.1142

d) Rs.1042

47. Find the annuity for getting 10,000 after the end of 10 years. If the annual interest rate is 12%.

a) Rs.569

b) Rs.579

c) Rs.589

d) Rs.599

48. Find the annuity for getting 10,000 at the beginning of year at a interest rate of 12% for 12 years.

a) Rs.1600

b) Rs.1614

c) Rs.1628

d) Rs.1656

49. Find the NPV if initial investment 5,000, Benefit for three years = 3000 per year and discount rate = 9%.

a) Rs.2180

b) Rs.2380

c) Rs.2580

d) Rs.2780

50. According to law of demand, if the price of goods increases then the demand of articles

a) increases

b) decreases

c) constant d) all of the above

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