A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
✅ The correct answer is option D.
Engineering Economy MCQs
122. If there are many sellers and few buyers, the market situation is ______________________?
A. Duopsony
B. Oligopoly
C. Oligopsony
D. Monopoly
✅ The correct answer is option C.
123. What type of bond which can be redeemed before maturity date ?
A. Preferred bond
B. Registered bond
C. Incorporators bond
D. Callable bond
✅ The correct answer is option D.
124. A mathematical expression also known as the present value of annuity of one is called ____________________?
A. Load factor
B. Demand factor
C. Sinking fund factor
D. Present worth factor
✅ The correct answer is option D.
125. Duopsony is a market situation where there is/are______________?
A. Few sellers and few buyers
B. Few sellers and many buyers
C. Many sellers and few buyers
D. One seller and few buyers
✅ The correct answer is option C.
126. Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?
A. 13.15 %
B. 13.32 %
C. 13.46 %
D. 13.73 %
✅ The correct answer is option D.
127. “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
✅ The correct answer is option D.
128. Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded ?
A. Monthly
B. Bimonthly
C. Quarterly
D. Annually
✅ The correct answer is option C.
129. A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment ?
A. P 2,500.57
B. P 2,544.45
C. P 2,540.56
D. P 2,504.57
✅ The correct answer is option D.
130. What market situation exists where there is only one buyer and only one seller ?
A. Monopsony
B. Monopoly
C. Bilateral monopsony
D. Bilateral monopoly
✅ The correct answer is option D.