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 4 of 8

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Q31.
In a cash flow series :

a.

uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.

b.

Either an increase or a decrease in the amount of a cash flow is called the gradient.

c.

The gradient in the cash flow may be positive or negative.

d.

All of these

Discuss
Answer: (d).All of these
Q32.
If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is :

a.

(1 + ni)

b.

(ni - 1)

c.

ni

d.

None of these

Discuss
Answer: (a).(1 + ni)
Q33.
Pick up the correct statement from the following:

a.

Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.

b.

All financial ratios are obtained by relating two sets of information contained in a Single financial statement.

c.

The relationship between two accounting figures expressed mathematically, is known as a financial ratio.

d.

All of these

Discuss
Answer: (d).All of these
Q34.
Pick up the correct statement from the following:

a.

The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.

b.

The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.

c.

The liquidity ratios are used to indicate the financial position of the firm.

d.

All of these

Discuss
Answer: (d).All of these
Q35.
Pick up the correct statement from the following:

a.

A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.

b.

In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.

c.

As the discount rate increases, the net present value profile slopes downward to the right.

d.

All of these

Discuss
Answer: (d).All of these
Q36.
The project contractor relies on the cost of the estimate :

a.

for submission of a competitive bid for a lumpsum contract

b.

for a unit price contract

c.

for preparation of a definitive estimate to help negotiate contract.

d.

All of these

Discuss
Answer: (d).All of these
Q37.
The wages of supervisors and material handlers are charged as :

a.

Over head

b.

direct labour cost

c.

indirect labour cost

d.

None of these

Discuss
Answer: (a).Over head
Q38.
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where

a.

8% is the rate of interest per year

b.

money is borrowed for n = 7 years

c.

both (a) and (b)

d.

Neither (a) nor (b)

Discuss
Answer: (c).both (a) and (b)
Q39.
Annuities involve:

a.

a series of payments

b.

all payments of equal amount

c.

payment at equal time intervals

d.

All of these

Discuss
Answer: (d).All of these
Q40.
The more critical (or severe) test of the firm's liquidity can be judged by :

a.

Liquidity ratio

b.

Current ratio

c.

Acid-Test (or Quick) ratio

d.

Debts ratio

Discuss
Answer: (c).Acid-Test (or Quick) ratio
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