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Civil Engineering :: Engineering Economics

  1. What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?

  2. A.

     Yield rate

    B.

     Rate of return

    C.

     Rate of interest

    D.

     Economic return

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

  4. A.

     Perfect competition

    B.

     Oligopoly

    C.

     Oligopsony

    D.

     Monopoly

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  5. The product of CAF (S P) and PWF (S P) is:

  6. A.

     1/2

    B.

     1

    C.

     1/3

    D.

     1/4

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  7. In a cash-flow diagram:

  8. A.

     Time 0 is considered to be the present

    B.

     Time 1 is considered to be the end of time period 1

    C.

     A vertical arrow pointing up indicates a positive cash flow

    D.

     All of these

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  9. Lands, buildings, plants and machineries are example of what type of asset?

  10. A.

     Current asset

    B.

     Trade investment asset

    C.

     Fixed asset

    D.

     Intangible asset

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  11. What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled?

  12. A.

     Authorized capital stock

    B.

     Preferred stock

    C.

     Incorporator stock

    D.

     Common stock

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  13. The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:
    A. The construction of the building now to cost P 400,000
    B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.
    By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

  14. A.

     P 19,122.15

    B.

     P 19,423.69

    C.

     P 19,518.03

    D.

     P 19,624.49

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  15. What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

  16. A.

     Dividend

    B.

     Equity

    C.

     Return

    D.

     Par value

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  17. What refers to the amount of money paid for the use of borrowed capital?

  18. A.

     Interest

    B.

     Rate of interest

    C.

     Simple interest

    D.

     Principal

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  19. Which is true about corporation?

  20. A.

     It is worse type of business organization.

    B.

     The minimum number of incorporators to start a corporation is three.

    C.

     Its life is dependent on the lives of the incorporators.

    D.

     The stock holders of the corporation are only liable to the extent of their investments.

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