Engineering Economy MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Engineering Economy, a fundamental topic in the field of Civil Engineering. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Engineering Economy MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Engineering Economy mcq questions that explore various aspects of Engineering Economy problems. Each MCQ is crafted to challenge your understanding of Engineering Economy principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Civil Engineering tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Engineering Economy MCQs are your pathway to success in mastering this essential Civil Engineering topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Engineering Economy. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Engineering Economy knowledge to the test? Let's get started with our carefully curated MCQs!

Engineering Economy MCQs | Page 2 of 8

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Q11.
Pick up the correct statement from the following:

a.

The capital required to get a project started, is called first cost.

b.

The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs.

c.

The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs.

d.

All of these

Discuss
Answer: (d).All of these
Q12.
Present worth Annuity (PWA) is generally known as

a.

Premium annuities

b.

Income annuities

c.

Future annuities

d.

All of these

Discuss
Answer: (d).All of these
Q13.
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

a.

Liquidity ratio

b.

Financial leverage ratio

c.

Activity ratio

d.

None of these

Discuss
Answer: (d).None of these
Q14.
Pick up the correct statement from the following:

a.

The ratios which show profitability in relation to sales and those which show profitability in relation to investment, are called profitability ratios.

b.

The ratio of gross profit and net sales, is called profitability in relation to sales ratio.

c.

The ratio of net profit after taxes to total assests is known as profitability in relation to investment ratio

d.

All of these

Discuss
Answer: (d).All of these
Q15.
The financial analysis helps to judge:

a.

The operational efficiency of the firm

b.

The financial position of the firm.

c.

Both (a) and (b)

d.

Neither (a) nor (b)

Discuss
Answer: (c).Both (a) and (b)
Q16.
The interest calculated on the basis of 365 days a year, is known as :

a.

interest

b.

ordinary simple interest

c.

exact simple interest

d.

None of these

Discuss
Answer: (c).exact simple interest
Q17.
In a cash-flow diagram :

a.

Time 0 is considered to be the present

b.

Time 1 is considered to be the end of time period 1

c.

A vertical arrow pointing up indicates a positive cash flow

d.

All of these

Discuss
Answer: (d).All of these
Q18.
Which one of the following questions is relevant to the construction estimates :

a.

Did the estimators precisely evaluate site conditions ?

b.

Did the estimators use short cut methods which may be un realistic in their situation ?

c.

How much money will the contractor's risk, loosing if he Were to submit bid on the raw estimate of cost.

d.

All of these

Discuss
Answer: (d).All of these
Q19.
The ratio obtained by dividing 'quick assests' by current liabilities is called

a.

Turnover ratio

b.

Acid test ratio

c.

Solvency ratio

d.

None of these.

Discuss
Answer: (b).Acid test ratio
Q20.
Which one of the following definitions, is correct ?

a.

The ratio of total debt to share holder's equity is called 'debt ratio'.

b.

The ratio debt-to-total assests is called Debt-to-total assest ratio.

c.

The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period, is called interest coverage ratio.

d.

All of these

Discuss
Answer: (d).All of these
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