MCQ in Engineering Economics Part 9 | ECE Board Exam

(Last Updated On: March 29, 2021)

MCQ in Engineering Economics Part 9 | ECE Board Exam

This is the Multiple Choice Questions Part 9 of the Series in Engineering Economics as one of the General Engineering and Applied Sciences (GEAS) topic. In Preparation for the ECE Board Exam make sure to expose yourself and familiarize in each and every questions compiled here taken from various sources including past Board Questions in General Engineering and Applied Sciences (GEAS), Engineering Economy Books, Journals and other Engineering Economy References.

Continue Practice Exam Test Questions Part 9 of the Series

MCQ in Engineering Economics Part 8 | ECE Board Exam

Choose the letter of the best answer in each questions.

401. It is defined to be the capacity of a commodity to satisfy human want

A. Necessity

B. Utility

C. Luxuries

D. Discount

View Answer:

Answer: Option B

Explanation:

402. 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.

A. Common stock

B. Voting stock

C. Pretend stock

D. Non par value stock

View Answer:

Answer: Option C

Explanation:

403. It is an amount which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy or sell.

A. Book value

B. Market value

C. Use value

D. Fair value

View Answer:

Answer: Option B

Explanation:

404. ____ is the loss of value of the equipment with use over a period of time. It could mean a difference in value between a new asset and the use asset currently in a service.

A. Loss

B. Depreciation

C. Extracted

D. Gain

View Answer:

Answer: Option B

Explanation:

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

A. Oligopoly

B. Monopsony

C. Monopoly

D. Perfect competition

View Answer:

Answer: Option A

Explanation:

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

A. Monopsony

B. Monopoly

C. Oligopoly

D. Oligopsony

View Answer:

Answer: Option A

Explanation:

407. It is the worth of a property as recorded in the book of an enterprise.

A. Salvage value

B. Price

C. Book value

D. Scrap value

View Answer:

Answer: Option C

Explanation:

408. Reduction in the level of nation income and output usually accompanied by a fall in the general price level.

A. Devaluation

B. Deflation

C. Inflation

D. Depreciation

View Answer:

Answer: Option B

Explanation:

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

A. Cartel

B. Monopoly

C. Corporation

D. Competitors

View Answer:

Answer: Option A

Explanation:

410. A market situation where there is only one seller with many buyer.

A. Monopoly

B. Monophony

C. Oligopoly

D. Perfect competition

View Answer:

Answer: Option A

Explanation:

411. A market situation where there is one seller and buyer.

A. Bilateral monopoly

B. Monopoly

C. Oligopoly

D. Bilateral Monopoly

View Answer:

Answer: Option A

Explanation:

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

A. Deflation

B. Inflation

C. Devaluation

D. Depreciation

View Answer:

Answer: Option A

Explanation:

413. A series of equal payments made at equal interval of time.

A. Annuity

B. Amortization

C. Depreciation

D. Bonds

View Answer:

Answer: Option A

Explanation:

414. The money paid for the use of borrowed capital.

A. Interest

B. Amortization

C. Annuity

D. Bonds

View Answer:

Answer: Option A

Explanation:

415. The place where buyers and sellers come together.

A. Maker

B. Store

C. Bargain center

D. Port

View Answer:

Answer: Option A

Explanation:

416. The value of the stock as stated on the stocks certificate

A. Stock value

B. Par value

C. Interest

D. Maturity value

View Answer:

Answer: Option B

Explanation:

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

A. Bilateral monopoly

B. Oligopoly

C. Duopsony

D. Duopoly

View Answer:

Answer: Option C

Explanation:

418. A market situation in which two powerful groups or organizations dominate commerce in one business market or commodity.

A. Oligopoly

B. Duopoly

C. Duopsony

D. duopoly

View Answer:

Answer: Option B

Explanation:

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

A. Perpetuity

B. Ordinary annuity

C. Annuity due

D. Deferred annuity

View Answer:

Answer: Option D

Explanation:

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

A. Tally

B. Par value

C. Check and balance

D. Break even

View Answer:

Answer: Option D

Explanation:

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

A. Sunk cost

B. Fixed costs

C. Depletion cost

D. Construction cost

View Answer:

Answer: Option A

Explanation:

422. An obligation with no condition attach is called

A. Personal

B. Gratuitous

C. Concealed

D. Private

View Answer:

Answer: Option B

Explanation:

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

A. Operation costs

B. Construction cost

C. Depletion cost

D. Production cost

View Answer:

Answer: Option B

Explanation:

424. The amount received from the sale of an addition unit of a product.

A. Marginal cost

B. Marginal revenue

C. Extra profit

D. Prime cost

View Answer:

Answer: Option B

Explanation:

425. The amount that the property would give if sold for junk.

A. Junk value

B. Salvage value

C. Scrap value

D. Book value

View Answer:

Answer: Option C

Explanation:

426. The worth of the property which is equal to the original cost less the amount which has been charged to depreciation.

A. Scrap value

B. Salvage value

C. Book value

D. Market value

View Answer:

Answer: Option C

Explanation:

427. The sum of the direct labor cost incurred in the factory and the direct material cost of all materials that go into production is called

A. Net cost

B. Maintenance cost

C. Prime cost

D. Operating cost

View Answer:

Answer: Option C

Explanation:

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

A. Market value

B. Net value

C. Discount

D. Interest

View Answer:

Answer: Option C

Explanation:

429. The addition cost of producing one more unit is

A. Prime cost

B. Marginal cost

C. Differential cost

D. Sunk cost

View Answer:

Answer: Option B

Explanation:

430. 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. Annuity

B. Bond

C. Amortization

D. Collateral

View Answer:

Answer: Option B

Explanation:

431. Estimated value of the property at the useful life.

A. Market value

B. Fair value

C. Salvage value

D. Book value

View Answer:

Answer: Option C

Explanation:

432. Determination of the actual quantity of the materials on hand as of a given date.

A. Physical inventory

B. Counting principle

C. Stock assessment

D. Periodic material update

View Answer:

Answer: Option A

Explanation:

433. This consists of a cash and account receivable during the next period or any other material which will be sold.

A. Fixed assets

B. Deferred charges

C. Current asset

D. Liability

View Answer:

Answer: Option C

Explanation:

434. 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. Fraud

B. Tort

C. Libel

D. Scam

View Answer:

Answer: Option B

Explanation:

435. A series of uniform payment over an infinite period of time

A. Depletion

B. Capitalized cost

C. Perpetuity

D. Inflation

View Answer:

Answer: Option C

Explanation:

436. These are products or services that are required to support human life and activities that will be purchased in somewhat the same quantity event though the price varies considerably.

A. Commodities

B. Necessities

C. Demands

D. Luxury

View Answer:

Answer: Option B

Explanation:

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

A. Utility

B. Supply

C. Stocks

D. Goods

View Answer:

Answer: Option B

Explanation:

438. It is sometimes called the second hand value

A. Scrap value

B. Salvage value

C. Book value

D. Par value

View Answer:

Answer: Option B

Explanation:

439. Decreases in the value of a physical property due to the passage of time.

A. Deflation

B. Depletion

C. Declination

D. Depreciation

View Answer:

Answer: Option D

Explanation:

440. An association of two or more individuals for the purpose of engaging business for profit.

A. Single proprietorship

B. Party

C. Corporation

D. Partnership

View Answer:

Answer: Option D

Explanation:

441. The simplest form of business organization where in the business is own entirely by one person.

A. Partnership

B. Proprietorship

C. Corporation

D. Joint venture

View Answer:

Answer: Option B

Explanation:

442. Parties whose consent or signature in a contract is not considered intelligent.

A. Dummy person

B. Minors

C. Demented persons

D. Convict

View Answer:

Answer: Option C

Explanation:

443. It is defined as the capacity of a commodity to satisfy human want.

A. Satisfaction

B. Luxury

C. Necessity

D. Utility

View Answer:

Answer: Option B

Explanation:

444. This occurs in a situation where a commodity or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market.

A. Perfect competition

B. Monophony

C. Monopoly

D. Cartel

View Answer:

Answer: Option A

Explanation:

445. These are products or services that are desired by human and will be purchased if money is available after the required necessities have been obtained.

A. Commodities

B. Necessities

C. Luxuries

D. Supplies

View Answer:

Answer: Option C

Explanation:

446. Grand total of the assets and operational capability of a corporation.

A. Authorized capital

B. Paid off capital

C. Subscribed capital

D. Investment

View Answer:

Answer: Option A

Explanation:

447. It is where the original record of a business transaction is recorded.

A. Ledger

B. Spreadsheet

C. Journal

D. Logbook

View Answer:

Answer: Option C

Explanation:

448. The length of time which the property may be operated at a profit.

A. Life span

B. Economic life

C. Operating life

D. Profitable life

View Answer:

Answer: Option B

Explanation:

449. The right and privilege granted to an individual or corporation to do business in a certain region.

A. Permit

B. Royalty

C. License

D. Franchise

View Answer:

Answer: Option D

Explanation:

450. The worth of an asset as shown in the accounting records of an enterprise.

A. Fair value

B. Par value

C. Market value

D. Book value

View Answer:

Answer: Option D

Explanation:

Online Questions and Answers in Engineering Economics Series

Following is the list of practice exam test questions in this brand new series:

Engineering Economics MCQs
PART 1: MCQ from Number 1 – 50                        Answer key: PART 1
PART 2: MCQ from Number 51 – 100                   Answer key: PART 2
PART 3: MCQ from Number 101 – 150                 Answer key: PART 3
PART 4: MCQ from Number 151 – 200                 Answer key: PART 4
PART 5: MCQ from Number 201 – 250                 Answer key: PART 5
PART 6: MCQ from Number 251 – 300                 Answer key: PART 6
PART 7: MCQ from Number 301 – 350                 Answer key: PART 7
PART 8: MCQ from Number 351 – 400                 Answer key: PART 8
PART 9: MCQ from Number 401 – 450                 Answer key: PART 9
PART 10: MCQ from Number 451 – 500                 Answer key: PART 10/a>

Complete List of MCQs in General Engineering and Applied Sciences per topic

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