Economics for Engineers MCQ set-2

Economics for Engineers MCQ Questions with Answers


1. A person of Rs. 1,10,000 was made for 31 days. The net interest after deducting 20% withholding tax is Rs. 890,36. Find the rate of return annually.





Answer : D


2. The present value of ₹ 1 to be received after 3 years compounded annually at 10%





Answer : C


3. If the inflation rate is 7% per year, market interest rate is 15%, then the real interest rate will be





Answer : A


4. At the break-even point





Answer : C


5. For a project to be financially viable the value of Benefit-Cost Ratio should be





Answer : A


Economics for Engineers MCQ

6. The period required for the project’s profit or other benefits to equal the project’s cost is called





Answer : C


7. Internal rate of return is an indicator of





Answer : C


8. Annualized capital recovery cost is defined as





Answer : D


9. IIR stands for the rate of return for which





Answer : A


10. The index which measures prices of a selection of goods and services purchased by a given consumer class is





Answer : A


Economics for Engineers MCQ

11. If Index Number for a certain period is equal to 100, then





Answer : C


12. Demand-pull inflation may be caused by





Answer : C


13. What is the full form of PVIP?





Answer : B


14. If actual sales are Rs. 40,000 and BEP sales are Rs. 30,000 the Margin of Safety is Rs.





Answer : B


15. FVIF5%3=





Answer : C


Economics for Engineers MCQ

16. In NPV method, cash flow is generally calculated on the basis of





Answer : A


17. What could be the value of present sum for Rs. 10,000 at 8% interset for one year ?





Answer : D


18. If E0=optimistic estimate, Em=most likely estimate, and Ep=pessimistic estimate then the average or mean value of a parameter for economic analysis is given by





Answer : D


19. Margin of safety is equal to





Answer : A


20. If A and B are two mutually non-exclusive events, then P(A or B) is





Answer : B




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