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

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

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

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

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

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

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

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

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

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

A. Monopoly

B. Monophony

C. Oligopoly

D. Perfect competition

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

A. Bilateral monopoly

B. Monopoly

C. Oligopoly

D. Bilateral Monopoly

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

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

A. Annuity

B. Amortization

C. Depreciation

D. Bonds

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

A. Interest

B. Amortization

C. Annuity

D. Bonds

415. The place where buyers and sellers come together.

A. Maker

B. Store

C. Bargain center

D. Port

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

A. Stock value

B. Par value

C. Interest

D. Maturity value

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

A. Bilateral monopoly

B. Oligopoly

C. Duopsony

D. Duopoly

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

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

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

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

422. An obligation with no condition attach is called

A. Personal

B. Gratuitous

C. Concealed

D. Private

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

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

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

A. Junk value

B. Salvage value

C. Scrap value

D. Book value

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

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

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

429. The addition cost of producing one more unit is

A. Prime cost

B. Marginal cost

C. Differential cost

D. Sunk cost

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

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

A. Market value

B. Fair value

C. Salvage value

D. Book value

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

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

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

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

A. Depletion

B. Capitalized cost

C. Perpetuity

D. Inflation

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

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

438. It is sometimes called the second hand value

A. Scrap value

B. Salvage value

C. Book value

D. Par value

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

A. Deflation

B. Depletion

C. Declination

D. Depreciation

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

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

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

A. Dummy person

B. Minors

C. Demented persons

D. Convict

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

A. Satisfaction

B. Luxury

C. Necessity

D. Utility

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

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

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

A. Authorized capital

B. Paid off capital

C. Subscribed capital

D. Investment

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

A. Ledger

B. Spreadsheet

C. Journal

D. Logbook

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

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

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

Online Questions and Answers in Engineering Economics Series

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

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