Engineering Economy

Test your knowledge of engineering economy with our online multiple choice questions. Get instant feedback and track your progress as you go. Twenty (20) MCQ questions from our test bank will be randomly shown for every attempt. Passing mark for this test is 70%.

Objectives: Provide a comprehensive online quiz to test knowledge of engineering economy.

Welcome to your Engineering Economy

A man bought a machine costing P135 000 with a salvage value of P20 000 after 3 years. If the man will sell it after 2 years, how much is the loss or gain (i.e. the cost of equipment) if i=10%.

It is the stock that has prior to dividends. It usually does not bring voting right to the owners and the dividend is fixed and cannot be higher than the specified amount

An economic condition in which there are so few suppliers of a particular product that one supplier’s actions significantly affect prices and supply

What is the accumulated amount of five years annuity paying P 6000 at the end of each year, with interest at 15% compounded annually?

A wrong act that causes injury to a person or property and for which allows a claim by the injured party to recover damages

A market situation in which two competing buyers exert controlling influence over many sellers

How much do ten P2000 quarterly payments amount at present if the interest rate is 10% compounded quarterly

The condition in which the total income equals the total operating expenses

A market whereby there is only one buyer of an item for when there are no goods substitute

The addition cost of producing one more unit is

The type of annuity where the first payment is made after several periods, after the beginning of the payment

The sum of all the costs necessary to prepare a construction project for operation.

Reduction in the level of national income and output usually accompanied by a fall in the general price level

What is the effective rate of interest if P1000 is invested at a nominal rate of 15% compounded quarterly?

The quantity of a certain commodity that is offered for sale at a certain price at a given place and time

A formal organization of producers within industry forming a perfect collusion purposely formed to increase profit and block new comers from the industry

The amount which has been spent or capital invested which for some reasons cannot be retrieved.

A written contract by a debtor to pay final redemption value on an indicated date or maturity date and pay a certain sum periodically.

A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000 on repairs and remodeling. Immediately after the house was remodeled, he was offered P545,000 to sell the house. After some consideration, he decided to keep the house and have it rented for P4,500 per month starting two months after the purchase. He collected rent for 15 months and then sold the house for P600,000. if the interest rate was 1.5% per month, how much extra money did he make or lose by not selling the house immediately after it was remodeled

The difference between the present value and the worth of money at some time in the future is called