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In engineering economics, what is defined as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs, and projects?
In engineering economics, what is defined as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs, and projects?
What is considered as the standard unit which forms the basis of a country’s domestic money supply?
What is considered as the standard unit which forms the basis of a country’s domestic money supply?
In economic terms, what is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human wants?
In economic terms, what is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human wants?
What is the term for the cost of an alternative that must be forgone in order to pursue a certain action?
What is the term for the cost of an alternative that must be forgone in order to pursue a certain action?
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What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
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What term refers to the difference between total revenue and total cost?
What term refers to the difference between total revenue and total cost?
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What term describes the process of determining the present value of a payment or a stream of payments that is to be received in the future?
What term describes the process of determining the present value of a payment or a stream of payments that is to be received in the future?
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What is the term for the rate at which the general level of prices for goods and services is rising?
What is the term for the rate at which the general level of prices for goods and services is rising?
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What is the term for a market structure in which a small number of firms have the large majority of market share?
What is the term for a market structure in which a small number of firms have the large majority of market share?
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In economic analysis, what term describes a situation in which resources are allocated inefficiently and products are not being produced in the least costly way?
In economic analysis, what term describes a situation in which resources are allocated inefficiently and products are not being produced in the least costly way?
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What is the characteristic of perfect competition?
What is the characteristic of perfect competition?
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What is the market situation with one buyer and no substitute?
What is the market situation with one buyer and no substitute?
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When does a natural monopoly occur?
When does a natural monopoly occur?
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What does the law of diminishing returns state?
What does the law of diminishing returns state?
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What is the role of buyers in markets?
What is the role of buyers in markets?
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What is the definition of demand in economics?
What is the definition of demand in economics?
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What is the market situation with few sellers and few buyers?
What is the market situation with few sellers and few buyers?
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What is the characteristic of monopoly?
What is the characteristic of monopoly?
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What is the market situation with many sellers and many buyers?
What is the market situation with many sellers and many buyers?
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What is the role of sellers in markets?
What is the role of sellers in markets?
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Which type of annuity requires payments at the beginning of each period?
Which type of annuity requires payments at the beginning of each period?
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What is the primary characteristic of a perpetuity?
What is the primary characteristic of a perpetuity?
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Which financial instrument is typically issued at a discount and redeemed at face value upon maturity?
Which financial instrument is typically issued at a discount and redeemed at face value upon maturity?
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In the context of time value of money, what does the term 'discounting' refer to?
In the context of time value of money, what does the term 'discounting' refer to?
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What is the distinguishing feature of a bond with a 'call provision'?
What is the distinguishing feature of a bond with a 'call provision'?
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Which type of interest does not earn interest on previously earned interest?
Which type of interest does not earn interest on previously earned interest?
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What type of annuity has payments that fluctuate over time?
What type of annuity has payments that fluctuate over time?
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Which of the following is a characteristic of a commodity?
Which of the following is a characteristic of a commodity?
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When comparing two bonds, all else being equal, which bond would have a higher present value?
When comparing two bonds, all else being equal, which bond would have a higher present value?
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What is the term used for the process of converting future cash flows into their equivalent present value?
What is the term used for the process of converting future cash flows into their equivalent present value?
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What is the term used to describe the process of converting future cash flows into their equivalent present value?
What is the term used to describe the process of converting future cash flows into their equivalent present value?
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In engineering economics, what is the term for the cost of an alternative that must be forgone in order to pursue a certain action?
In engineering economics, what is the term for the cost of an alternative that must be forgone in order to pursue a certain action?
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What is the market situation with one buyer and no substitute?
What is the market situation with one buyer and no substitute?
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Which type of interest does not earn interest on previously earned interest?
Which type of interest does not earn interest on previously earned interest?
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What is the term for the rate at which the general level of prices for goods and services is rising?
What is the term for the rate at which the general level of prices for goods and services is rising?
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What term refers to the difference between total revenue and total cost?
What term refers to the difference between total revenue and total cost?
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What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
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Which financial instrument is typically issued at a discount and redeemed at face value upon maturity?
Which financial instrument is typically issued at a discount and redeemed at face value upon maturity?
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What is considered as the distinguishing feature of a bond with a 'call provision'?
What is considered as the distinguishing feature of a bond with a 'call provision'?
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What is the distinguishing characteristic of an ordinary annuity?
What is the distinguishing characteristic of an ordinary annuity?
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Which type of annuity requires equal periodic payments for a specified number of periods?
Which type of annuity requires equal periodic payments for a specified number of periods?
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What financial instrument is typically issued at a discount and redeemed at face value upon maturity?
What financial instrument is typically issued at a discount and redeemed at face value upon maturity?
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In the context of time value of money, what does the term 'compounding' refer to?
In the context of time value of money, what does the term 'compounding' refer to?
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What is the market situation with one seller and many buyers?
What is the market situation with one seller and many buyers?
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What is the term for the process of converting future cash flows into their equivalent present value?
What is the term for the process of converting future cash flows into their equivalent present value?
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Which of the following is a characteristic of a bond with a 'call provision'?
Which of the following is a characteristic of a bond with a 'call provision'?
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In perfect competition, what characterizes the products being exchanged?
In perfect competition, what characterizes the products being exchanged?
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In a market situation of monopsony, what is the defining characteristic?
In a market situation of monopsony, what is the defining characteristic?
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What is defined as the analysis and evaluation of the monetary consequences using economic principles in engineering applications?
What is defined as the analysis and evaluation of the monetary consequences using economic principles in engineering applications?
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What is the characteristic of a natural monopoly?
What is the characteristic of a natural monopoly?
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What is the market situation with many sellers offering similar but not identical products?
What is the market situation with many sellers offering similar but not identical products?
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What does the law of diminishing returns state?
What does the law of diminishing returns state?
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What is the primary characteristic of a perpetuity?
What is the primary characteristic of a perpetuity?
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What is the distinguishing feature of a bond with a 'call provision'?
What is the distinguishing feature of a bond with a 'call provision'?
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What is the definition of demand in economics?
What is the definition of demand in economics?
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What is the market situation with few sellers and few buyers?
What is the market situation with few sellers and few buyers?
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What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
What is the measure of responsiveness of the quantity demanded of a good to a change in its price?
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In economic terms, what is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human wants?
In economic terms, what is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human wants?
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What is the role of buyers in markets?
What is the role of buyers in markets?
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Study Notes
Engineering Economics MCQ Summary
- The text is a series of multiple-choice questions about engineering economics.
- The questions cover topics such as interest, annuities, bonds, and financial securities.
- It includes questions about the definitions and concepts related to economics and finance.
- The questions also cover topics like simple interest, compound interest, and time value of money.
- It addresses different types of annuities, including ordinary annuity, annuity due, and perpetuity.
- The text explains the characteristics and elements of ordinary annuities.
- It includes questions about financial instruments such as T-bills, securities, and bonds.
- The questions cover the present worth and value of bonds, as well as their features.
- The text also addresses topics like utility, necessity, and commodities.
- It provides multiple-choice questions about the definitions and concepts related to borrowing and lending.
- The questions aim to test the understanding of engineering economics principles and financial calculations.
- The text is part of a comprehensive series of MCQs in general engineering and applied sciences.
Market and Competition Overview
- Goods and services are defined as tangible economic activities that contribute to human satisfaction.
- Goods and services are classified into consumer and producer products, with consumer products being necessary for human life and activities.
- Markets are the exchange mechanisms bringing together buyers and sellers of products, factors of production, or financial securities.
- Buyers or consumers are the basic consuming units of commodities, and sellers are entities that make goods or services available in exchange for monetary consideration.
- Market situations include monopsony (one buyer, no substitute), oligopoly (few sellers and few buyers), and perfect competition (many buyers and sellers).
- Other market situations include monopoly (one seller, many buyers), duopsony (many sellers, few buyers), and duopoly (few sellers, few buyers).
- Perfect competition is characterized by many sellers and buyers, homogeneous products, free market entry and exit, and perfect information.
- Monopoly exists when a single vendor can prevent the entry of all other vendors in the market.
- Natural monopoly occurs when economies of scale are significant, and costs are minimized under a single producer.
- The law of diminishing returns states that increasing factors of production results in a less than proportionate increase in output.
- Demand refers to the need, want, or desire for a product backed by the money to purchase it, while supply refers to the amount of a product available for sale.
- In perfect competition, the price at which a product will be supplied and purchased is the price that equates supply and demand.
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Description
Test your knowledge of engineering economics with this comprehensive set of multiple-choice questions. Covering topics such as interest, annuities, bonds, and financial instruments, these questions will challenge your understanding of economic principles and financial calculations in an engineering context. Ideal for students and professionals in engineering and applied sciences.
