Engineering Economics 7

Objective Questions and Answers of Civil Engineering: Engineering Economics 7

Subject: Engineering Economics 7

Part 7: Objective questions and answers of Engineering Economics


Q1. What type of bond is issued jointly by two or more corporations?

a) Mortgage bond

b) Joint bond

c) Tie-up bond

d) Trust bond


Q2. A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is called ______.

a) Registered bond

b) Coupon bond

c) Mortgage bond

d) Collateral trust bond


Q3. A bond without any security behind them except a promise to pay by the issuing corporation is called ______.

a) Joint bond

b) Debenture bond

c) Trust bond

d) Common bond


Q4. A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries

a) Mortgage bond

b) Joint bond

c) Security bond

d) Collateral trust bond


Q5. What type of bond which can be redeemed before maturity date?

a) Preferred bond

b) Registered bond

c) Incorporators bond

d) Callable bond


Q6. The price at which the callable bond will be redeemed from the bondholder is called ______.

a) Par value

b) Call value

c) Face value

d) Redemption value


Q7. What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

a) Depletion

b) Inflation

c) Depreciation

d) Deflation


Q8. In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

a) Straight line method

b) Sinking fund method

c) Sum-of-year digit method

d) Declining balance method


Q9. The declining balance method is also known as ______.

a) Double percentage method

b) Constant percentage method

c) Modified sinking fund method

d) Modified SYD method


Q10. The functional depreciation is sometimes called ______.

a) Demand depreciation

b) Adolescence

c) Life depreciation

d) Failure depreciation


Q11. What are the common methods of computing depletion charge?

a) Rational method and irrational method

b) Conservative method and conventional method

c) Unit method and percentage method

d) Discrete method and depletion allowance method


Q12. The depletion allowance method of computing depletion is commonly known as ______.

a) Unit method

b) Percentage method

c) Factor method

d) Sinking fund method


Q13. What is another term for “unit method” for computing depletion?

a) Initial cost method

b) Percentage method

c) Factor method

d) Sinking fund method


Q14. What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?

a) Asset recovery

b) Depreciation recovery

c) Period recovery

d) After-tax recovery


Q15. The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______

a) Fair value

b) Market value

c) Good will value

d) Book value


Q16. Salvage value is sometimes known as ______.

a) Scrap value

b) Going value

c) Junk value

d) Second-hand value


Q17. What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?

a) Company value

b) Going value

c) Goodwill value

d) Franchise value


Q18. In computing depreciation of equipment, which of the following represents the first cost?

a) The original purchase price and freight charges

b) Installation expenses

c) Initial taxes and permit fees

d) All of the above


Q19. The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called ______.

a) Sunk cost

b) Economic life

c) In-place value

d) Annuity


Q20. Capitalized cost of a project is also known as ______.

a) Infinite cost

b) Life cycle cost

c) Life cost

d) Project cost


Part 7: Objective questions and answers of Engineering Economics


Q1. Answer b


Q2. Answer b


Q3. Answer b


Q4. Answer d


Q5. Answer d


Q6. Answer b


Q7. Answer c


Q8. Answer b


Q9. Answer b


Q10. Answer b


Q11. Answer c


Q12. Answer b


Q13. Answer c


Q14. Answer b


Q15. Answer b


Q16. Answer d


Q17. Answer d


Q18. Answer d


Q19. Answer a


Q20. Answer b