Civil engineer objective questions – Engineering Economics (Section-7)

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

a) Perfect Competition

b) Oligopoly

c) Oligopsony

d) Monopoly

27.Oligopoly exists when there is/are      ?

a) Few sellers and few buyers

b) Few sellers and many buyers

c) Many sellers and few buyers

d) One sellers and few buyers

28.Perfect monopoly exists only if        ?

a) the single vendor can prevent the entry of all other vendors in the market

b) the single vendor gets the absolute franchise of the product

c) the single vendor is the only one who has the permit to sell

d) the single vendor is the only one who has the knowledge of the product

29. If there are many sellers and few buyers, the market situation is          ?

a) Duopsony

b) Oligopoly

c) Oligopsony

d) Monopoly

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

a) Monopsony

b) Monopoly

c) Bilateral monopsony

d) Bilateral monopoly

31.If there is only one seller and many buyers, the market situation is       ?

a) Duopsony

b) Oligopoly

c) Oligopsony

d) Monopoly

32.    What market situation exists where there are few sellers and few buyers ?

a) Oligopoly

b) Oligopsony

c) Bilateral Oligopoly

d) Bilateral Oligopsony

33.What is defined as an entity which makes product, good or services avaialable to buyer or consumer in exchange of monetary consideration ?

a) Saeller

b) Manufacturer

c) Producer

d) Buyer or Consumer

34.What is a market situation whereby there is only one buyer of an item for which there is no goods substitute ?

a) Monopsony

b) Monopoly

c) Oligopoly

d) Oligopsony

35.What is considered as the basic consuming or demanding unit of a commodity ?

a) Seller

b) Manufacturer

c) Producer

d) Buyer or Consumer

36.What refers to the goods and services that are required to support human life, needs and activities ?

a) Producer Products

b) Consumer Products

c) Luxury

d) Necessity

37.What are the two classifications of goods and services ?

a) Local and imported

b) Raw and finished

c) Consumer and Producer

d) Ready-made and made-to-order

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

a) Registered bond

b) Collateral trust bond

c) Mortgage bond

d) Debenture bond

39.A bond without any security behind them except a promise to pay by the issuing corporation is called         ?

a) Joint bond

b) Debenture bond

c) Trust bond

d) Common bond

40.What type of bond which can be redeemed before maturity date ?

a) Preferred bond

b) Registered bond

c) Incorporators bond

d) Callable bond

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

a) Return clause

b) Callability

c) Recall clause

d) Call class

42.The price at which the callable bond will be redeemed from the bondholder is called      ?

a) Par value

b) Call Value

c) Face value

d) Redemption value

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

a) Depletion

b) Inflation

c) Depreciation

d) Deflation

44.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?

a) Straight line method

b) Sinking fund method

c) Sum-of-year digit method

d) Declining balance method

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

a) Straight line method

b) Sinking fund method

c) Sum-of-year digit method

d) Declining balance method

46.What is an index of short-term paying ability ?

a) Current ratio

b) Profit margin ratio

c) Gross margin

d) Price-earnings ratio

47.The common ratio is the ratio of         ?

a) Net credit sales to average net receivable

b) Current assets to current liabilities

c) Gross profit to net sales

d) Net income to owner’s equity

48.What is defined as the current assets minus inventories and prepaid expenses ?

a) A profit margin ratio

b) Price-Earning ratio

c) Return of ratio investment ratio

d) Quick ratio

49.What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

a) Unstable economy

b) Rate of interest cannot be exactly determined

c) The initial deprecation is high

d) The initial depreciation is low

50.Capitalized cost of a project is also known as         ?

a) Infinite cost

b) Life cycle cost

c) Life cost

d) Project cost

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