111. What market situation exists where there are few sellers and few buyers ?
A. Oligopoly
B. Oligopsony
C. Bilateral oligopoly
D. Bilateral Oligopsony
✅ The correct answer is option D.
Engineering Economy MCQs
112. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?
A. 7 eyars
B. 8 years
C. 9 years
D. 10 years
✅ The correct answer is option C.
113. A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000 _________________?
A. 1,033
B. 1,037
C. 1,043
D. 1,053
✅ The correct answer is option D.
114. Which is NOT an essential element of an ordinary annuity ?
A. The amounts of all payments are equal.
B. The payments are made at equal interval of time.
C. The first payment is made at the beginning of the first period.
D. Compound interest is paid on all amounts in the annuity.
✅ The correct answer is option C.
115. A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year ?
A. P693.12
B. P700.12
C. P702.15
D. P705.42
✅ The correct answer is option D.
116. What is the type of annuity where the payments are made at the beginning of the each period starting from the first period ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity
✅ The correct answer is option C.
117. What refers to the goods and services that are desired by human and will be acquired only after all the needs have been satisfied ?
A. Producer products
B. Consumer products
C. Luxury
D. Necessity
✅ The correct answer is option D.
118. A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually ?
A. P 142,999.08
B. P 143,104.89
C. P 142,189.67
D. P 143,999.08
✅ The correct answer is option D.
119. What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?
A. Book value
B. Market value
C. Fair value
D. Franchise value
✅ The correct answer is option C.
120. What is the opposite of perfect competition ?
A. Monopsony
B. Oligopoly
C. Oligopsony
D. Monopoly
✅ The correct answer is option D.