1. A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment ?
A. 3.0%
B. 3.4%
C. 3.7%
D. 4.0%
✅ The correct answer is option A.
Engineering Economy MCQs
2. What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want ?
A. Services
B. Goods
C. Commodities
D. Goods or commodities
✅ The correct answer is option A.
3. In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity ?
A. P 15,030.03
B. P 20,113.57
C. P 18,289.05
D. P 16,892.34
✅ The correct answer is option A.
4. The difference between the present and future worth of money at some time in the future is called __________________?
A. Discount
B. Deduction
C. Inflation
D. Depletion
✅ The correct answer is option A.
5. 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
✅ The correct answer is option A.
6. What is the market situation exist when there are many buyers and many sellers ?
A. Perfect competition
B. Oligopoly
C. Oligopsony
D. Monopoly
✅ The correct answer is option A.
7. What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?
A. Opportunity cost
B. Ghost cost
C. Horizon cost
D. Null cost
✅ The correct answer is option A.
8. The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?
A. Sunk cost
B. Economic life
C. In-place value
D. Annuity
✅ The correct answer is option A.
9. 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 Unit 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
✅ The correct answer is option A.
10. A uniform series of payment occurring at equal interval of time is called ____________________?
A. Annuity
B. Amortization
C. Depreciation
D. Bond
✅ The correct answer is option A.