Economics for Engineers MCQ set-4

Economics for Engineers MCQ Questions with Answers


1. In a decision tree arrows coming out of which node have probabilities





Answer : B


2. The present worth of an alternative is 0. What do we know about the value of the future worth ?





Answer : B


3. If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy?





Answer : C


4. A machine worth Rs. 1,00,000 is purchase by paying Rs. 20,000 down payment and 12 monthly installments of Rs. 8,000 each. The book cost at time of purchase is





Answer : A


5. Which of the following statements is correct ?





Answer : A



Economics for Engineers MCQ

6. In decision making risk is measured by





Answer : C


7. The firm’s decision to invest its funds in fixed and long term assets is known as





Answer : B


8. Which of the following is not applicable to bottom-up approach to cost estimation ?





Answer : A


9. Costs reflected in accounting system only are callled





Answer : C


10. What is the relationship between Marginal Cost(MC) and Average Cost(AC) curves?





Answer : B


Economics for Engineers MCQ

11. To compute the updated cost of a boller of the asam capacity in a power plant, we use





Answer : C


12. The value of the Power-sizing Exponent(E) indicates Diseconomies of scale when





Answer : B


13. Learning Curve is applicable to the industries with





Answer : B


14. If in a power sizing model the power sizing index is greater than 1, then





Answer : A


15. A portion of the learning curve is





Answer : C


Economics for Engineers MCQ

16. What is the relation between the slopes of Total Cost(TC) and Total Revenue(TR) curves?





Answer : D


17. Sunk cost is





Answer : C


18. Which of the following is not applicable to bottom-up approach to cost estimation ?





Answer : A


19. Marginal cost curve cuts the Average Variable cost from





Answer : A


20. A person if deposits Rs. 50,000 in a bank at an interest of 10% compounded annually, then the future value at the end of 5 years will be





Answer : A




Related Links :

Leave a Comment

Your email address will not be published.