Civil engineer objective questions – Engineering Economics (Section-9)

76. The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use or Factor method in computing depletion?

a) $ 5,000,000.00

b) $ 5,010,000.00

c) $ 5,025,000.00

d) $ 5,050,000.00

78. A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

a) 1.0 hour per unit

b) 1.2 hours per unit

c) 1.4 hours per unit

d) 1.6 hour per unit

79. The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as          ?

a) Currency appreciation

b) Currency depreciation

c) Currency devaluation

d) Currency float

80. Capitalization cost of any structure or property is computed by which formula?

a) First cost + interest of first cost

b) Annual cost – interest of first cost

c) First cost + cost of perpetual maintenance

d) First cost + salvage value

81. What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product?

a) Stock pile

b) Hoard stock

c) Buffer Stock

d) Withheld Stock

82. The ability to convert assets to cash quickly is known as   ?

a) Solvency

b) Leverage

c) Insolvency

d) Liquidity

83. What is the basic accounting equation

a) Assets= liability + owner’s equity

b) Liability= assets + owner’s equity

c) Owner’s equity=assets + liability

d) Owner’s equity=liability – assets

84. The financial health of the company is measured in terms of ?

a) Liquidity

b) Solvency

c) Relative risk

d) All of the above

85.”When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the

a) Law of diminishing return

b) Law of supply

c) Law of demand

d) Law of supply and demand

86.”Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the

a) Law of diminishing return

b) Law of supply

c) Law of demand

d) Law of supply and demand

87. A                 is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition?

a) Perfect monopoly

b) Bilateral monopoly

c) Natural monopoly

d) Ordinary monopoly

88. What is defines as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs and projects?

a) Economic Analysis

b) Engineering cost analysis

c) Engineering economy

d) Design cost analysis

89. First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

a) 21%

b) 20%

c) 19%

d) 18%

90. A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent?

a) 6.89%

b) 6.65%

c) 6.58%

d) 6.12%

91. A feasibility study shows that a fixed capital investment of P 10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P 3,500,000?

a) 28.33%

b) 29.17%

c) 30.12%

d) 30.78%

92. The monthly demand for ice can being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P 25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P 275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

a) 10 months

b) 11 months

c) 12 months

d) 13 months

93. Engr. Trinidad loans from a loan firm an amount of P 100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P 100,000, what is the actual rate of interest?

a) 23.5%

b) 24.7%

c) 25.0%

d) 25.8%

94. Mr. Bacani borrowed money from the bank. He received from the bank P 1,842 and promised to repay P 2,000 at the end of 10 months. Determine the rate of simply interest?

a) 12.19%

b) 12.03%

c) 11.54%

d) 10.29%

95. A collage freshman borrowed P 2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P 1,920 after the bank collected the advance interest of P 80.00. What was the rate of discount?

a) 3.67%

b) 4.00%

c) 4.15%

d) 4.25%

96. Which of these gives the lowest effective rate of interest?

a) 12.35% compounded annually

b) 11.90% compounded annually

c) 12.20% compounded annually

d) 11.60% compounded annually

97. How long will it take money to double itself if invested at 5% compounded annually?

a) 13.7 years

b) 14.7 years

c) 14.2 years

d) 15.3 years

98. By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her guardian until it amount to P 50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?

a) 11.23 years

b) 11.46 years

c) 11.57 years

d) 11.87 years

99. Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called

a) Partnership

b) Investors

c) Corporation

d) Stockholders

100. What is the effective rate corresponding to 18% compounded daily? Taken 1 year is equal to 360 days ?

a) 19.41 %

b) 19.44 %

c) 19.31 %

d) 19.72 %

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