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 5 of 8

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Q41.
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
Q42.
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
Q43.
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
Q44.
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)
Q45.
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
Q46.
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
Q47.
Ratio analysis of a construction firm is used for analysis by :

a.

share holders

b.

firm's management

c.

Banks of the firm

d.

financial analysts

Discuss
Answer: (d).financial analysts
Q48.
Probabilistic estimating of a construction project includes:

a.

Labour

b.

Productivity

c.

wage scale

d.

All of these

Discuss
Answer: (d).All of these
Q49.
A construction estimate is used

a.

to judge tentatively or approximate value of the project

b.

to produce a statement of the approximate cost

c.

to decide an approximation of the value of the project and not the exact cost.

d.

None of these

Discuss
Answer: (c).to decide an approximation of the value of the project and not the exact cost.
Q50.
Each financial ratio is generally compared by

a.

a past ratio calculated from the past financial standard of the firm.

b.

a ratio developed by using the projected financial statement of the firm.

c.

a ratio of some selected firms most progressive and successful at the point of consideration.

d.

All of these

Discuss
Answer: (d).All of these
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