Engineering Economics(Civil Engineering ) Questions and Answers

Question 1. A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.
  1.    Mortgage bond
  2.    Joint bond
  3.    Security bond
  4.    Collateral trust bond
Explanation:-
Answer: Option D. -> Collateral trust bond
Question 2. What is the change in cost per unit variable change called?
  1.    Variable cost
  2.    Incremental cost
  3.    Fixed cost
  4.    Supplemental cost
Explanation:-
Answer: Option B. -> Incremental cost
Question 3. What is a measure of the average speed with which accounts receivable are collected?
  1.    Current ratio
  2.    Quick ratio
  3.    Acid test ratio
  4.    Receivable turnover
Explanation:-
Answer: Option D. -> Receivable turnover
Question 4. Cash money and credit necessary to establish and operate an enterprise are generally called ______.
  1.    Capital
  2.    Funds
  3.    Assets
  4.    Liabilities
Explanation:-
Answer: Option A. -> Capital
Question 5. What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?
  1.    Compulsory saving
  2.    Consumer saving
  3.    Forced saving
  4.    All of the above
Explanation:-
Answer: Option C. -> Forced saving
Question 6. The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where
  1.    8% is the rate of interest per year
  2.    Money is borrowed for n = 7 years
  3.    Both (A) and (B)
  4.    Neither (A) nor (B)
Explanation:-
Answer: Option C. -> Both (A) and (B)
Question 7. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by:
  1.    Architect/engineer
  2.    Construction manager
  3.    Owner himself/herself
  4.    Construction manager
Explanation:-
Answer: Option C. -> Owner himself/herself
Question 8. A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.
  1.    P 43,600.10
  2.    P 43,489.47
  3.    P 43,263.91
  4.    P 43,763.20
Explanation:-
Answer: Option D. -> P 43,763.20
Question 9. A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.
  1.    Sole proprietorship
  2.    Entrepreneurship
  3.    Partnership
  4.    Corporation
Explanation:-
Answer: Option A. -> Sole proprietorship
Question 10. What is the reduction in the money value of capital asset is called?
  1.    Capital expenditure
  2.    Capital loss
  3.    Loss
  4.    Deficit
Explanation:-
Answer: Option B. -> Capital loss
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