ENGINEERING ECONOMICS QUIZ

What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?

All of these

Consumer saving

Compulsory saving

Forced saving

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Which one of the following questions is relevant to the construction estimates?

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

Did the estimators use short cut methods which may be unrealistic in their situation

Did the estimators precisely evaluate site conditions

All of these

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Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1346

0.1332

0.1315

0.1373

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ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

10 years

7 eyars

9 years

8 years

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What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?

0.0824

0.0807

0.0812

0.0816

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Present worth Annuity (PWA) is generally known as

Income annuities

All of these

Premium annuities

Future annuities

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A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

P 143,999.08

P 142,189.67

P 142,999.08

P 143,104.89

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A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

1.2 hours per unit

1.0 hour per unit

1.6 hours per unit

1.4 hours per unit

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Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

All of these

Free market entry and exit

Homogeneous product

Perfect information and absence of all economic friction

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A construction estimate is used

To decide an approximation of the value of the project and not the exact cost

None of these

To judge tentatively or approximate value of the project

To produce a statement of the approximate cost

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