# 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.

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

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

4. At the break-even point

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

###### Economics for Engineers MCQ

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

7. Internal rate of return is an indicator of

8. Annualized capital recovery cost is defined as

9. IIR stands for the rate of return for which

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

###### Economics for Engineers MCQ

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

12. Demand-pull inflation may be caused by

13. What is the full form of PVIP?

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

15. FVIF5%3=

###### Economics for Engineers MCQ

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

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

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

19. Margin of safety is equal to

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