Q1 Compilation (Set A) for Blackboard PDF

1. What is a factor that influences demand? A. Price Expectation B. Technology used in production C. Weather conditions D. Price of the product Answer: A 2. What is the term for the exchange mechanism that brings together sellers and buyers of a product? A. Econ...

1. What is a factor that influences demand? A. Price Expectation B. Technology used in production C. Weather conditions D. Price of the product Answer: A 2. What is the term for the exchange mechanism that brings together sellers and buyers of a product? A. Economy B. Industry C. Sector D. Market Answer: D 3. What is the result of having many sellers and many buyers in a Perfectly Competitive market? A. Each seller and buyer has significant market power B. Each buyer has significant market power C. Each seller and buyer is sufficiently small to not influence the price D. Each seller has significant market power Answer: C 4. What is the term for the entity that makes a product, good, or service available to the buyer in exchange for monetary consideration? A. Seller B. Buyer C. Producer D. Consumer Answer: A 5. What is the characteristic of products in a Perfectly Competitive market? A. Homogeneous products B. Differentiated products C. Heterogeneous products D. Intermediate products Answer: A 6. What is the law of supply and demand?  A. The theory that prices are determined by the government. B. A market structure where there is a single buyer and multiple sellers. C. The theory that prices are determined by the production cost. D. The theory that prices are determined by the relationship between supply and demand. Answer: D 7. What is the primary perspective used in decision making? A. That of the customers B. That of the owners of the firm C. That of the stakeholders D. That of the suppliers Answer: B 8. What is the definition of elastic demand? A. A change in quantity demanded that is independent of a change in price. B. A change in quantity demanded that is greater than a change in price. C. A change in quantity demanded that is equal to a change in price. D. A change in quantity demanded that is less than a change in price. Answer: B 9. What is the effect of using a common unit of measurement in decision making? A. It makes the decision maker biased B. It simplifies the analysis of alternatives C. It makes the analysis more complex D. It reduces the number of prospective outcomes Answer: B 10. What is the market structure under which the law of supply and demand operates? A. Perfect competition. B. Oligopoly. C. Monopsony. D. Monopoly. Answer: A 11. What is the purpose of considering all relevant criteria in decision making? A. To make the decision making process more complex B. To select the alternative that best serves the long-term interests of the owners C. To ignore risks and uncertainty  D. To select the most profitable alternative Answer: B 12. What is the equilibrium point in the supply and demand theory? A. The point where the supply is equal to the demand. B. The point where the demand is greater than the supply. C. The point where the price is equal to the production cost. D. The point where the supply is greater than the demand. Answer: A 13. Why is it essential to make risk and uncertainty explicit in decision making? A. To make the decision maker biased B. To ignore their impact on the outcomes C. To recognize their inherent presence in estimating future outcomes D. To reduce the number of alternatives Answer: C 14. What is the law of demand? A. As prices fall, customers either buy less or more. B. As prices rise, customers buy less. C. As prices rise, customers buy more. D. As prices fall, customers buy more. Answer: B 15. What is the characteristic of a good decision-making process? A. It is not revisitable B. It ignores risks and uncertainty C. It can result in a decision with an undesirable outcome D. It always results in a desirable outcome Answer: C 16. What is the definition of a capital good? A. A good used to make consumer goods. B. A good used to produce other goods and services. C. A good used to make producer goods. D. A good used for investment purposes. Answer: B 17. What is the definition of a necessity in Engineering Economy? A. A product or service that is only purchased by the wealthy B. A product or service that is only purchased in times of economic boom C. A product or service that is required to support human life and activities D. A product or service that is desired by humans Answer: C 18. What is the characteristic of a luxury in Engineering Economy? A. It is only purchased by the poor B. It is desired by humans and will be purchased if money is available C. It is essential for human life and activities D. It is only purchased in times of economic recession Answer: B 19. What is the primary goal of the decision maker in evaluating alternatives? A. To select the alternative that best serves the long-term interests of the owners B. To select the most profitable alternative C. To select the alternative that has the lowest uncertainty D. To select the alternative that has the highest risk Answer: A 20. What is a characteristic of monopoly? A. Perfect information B. Many sellers and many buyers C. One seller and many buyers D. No barrier to entry Answer: C 21. What happens in a natural monopoly market situation? A. There are many sellers in the market B. The government sets the market price C. Costs are higher under monopoly than under perfect competition D. Costs are lower under monopoly than under perfect competition Answer: D 22. What is a barrier to entry in a monopoly market? A. Low transport cost B. Perfect information C. Severe barrier to entry  D. Many close substitutes Answer: C 23. What is a characteristic of oligopoly? A. Many sellers and many buyers with perfect information B. Perfect competition C. One seller and many buyers D. Few suppliers of a product or service Answer: D 24. What is a result of perfect competition? A. Reduced prices for buyers and better services from vendors B. Higher prices for buyers C. Reduced services from vendors D. Barrier to entry for new sellers Answer: A 25. What is a characteristic of perfect monopoly? A. Government sets the market price B. Perfect competition C. The single vendor can prevent the entry of all vendors into the market D. Many sellers in the market Answer: C 26. What is an absence of in a perfect competition market? A. Economic friction B. Perfect information C. Many close substitutes D. Government intervention Answer: A 27. What is the term for goods that satisfy human wants and needs? A. Consumer Goods B. Capital Goods C. Supply Goods D. Producer Goods Answer: A 28. What happens when the supply of a good or service exceeds the demand? A. Shortage B. Equilibrium point C. Surplus D. Demand shift Answer: C 29. According to the law of supply, what happens when prices rise? A. Companies reduce the supply of goods and services B. Companies increase the supply of goods and services C. Demand increases D. Supply remains constant Answer: B 30. What type of demand exists when there is an equal change in price and quantity demanded? A. Unitary Demand B. Inelastic Demand C. Elastic Demand D. Supply Demand Answer: A 31. What is the term for the machinery used in the production of commodities in producer goods? A. Producer Goods B. Consumer Goods C. Supply Goods D. Capital Goods Answer: D 32. What is the term for the performance of any duties or work for another? A. Marketing B. Goods C. Services D. Supply Answer: C 33. What happens when the demand for a good or service exceeds the supply? A. Surplus  B. Equilibrium point C. Shortage D. Supply shift Answer: C 34. What is the primary unit of demand in a market? A. Government B. Buyer or consumer C. Seller D. Manufacturer Answer: B 35. Which of the following factors does NOT influence demand? A. Price of Related Goods B. Price Expectation C. Taste and preference D. Government Policy Answer: D 36. What is a characteristic of perfect competition? A. A single seller with a monopoly B. Incomplete information C. Barrier to entry and exit D. Many sellers and many buyers Answer: D 37. Which of the following is NOT a condition of perfect competition? A. Monopoly power B. Homogeneous products C. Free market-entry and exit D. Perfect information Answer: A 38. What is the term for the situation in which the quantity of a product that consumers are willing to buy equals the quantity that producers are willing to supply? A. Perfect competition B. Law of demand C. Supply and demand D. Market equilibrium  Answer: D 39. Which of the following is a factor that influences supply? A. Population B. Taste and preference C. Price Expectation D. Price of the product Answer: D 40. A man borrowed P20,000 and promised to pay an amount of P21,500 with simple interest of 20%. How many days did charge to him to pay his debt? A. 120 days B. 135 days C. 165 days D. 375 days Answer: B 41. If you got a character loan of P10,000 from a bank with 18 percent interest per annum, how much interest would you have paid in one year? A. P1,800 B. P18,000 C. P900 D. P180 Answer: A 42. A man borrowed P25,000 on March 3, 1996 and promised to pay the amount on October 21, 1996 with 15% simple interest. What is the future amount using ordinary interest? A. P27,385.42 B. P27,416.67 C. P27,427.16 D. P27,375.00 Answer: D 43. If the future amount is 50 percent more than the principal after 10 months, determine the simple interest rate. A. 20% B. 40% C. 60% D. 80%  Answer: C 44. Determine the exact simple interest on P5,500.00 for the period from January 10, 1996 to October 28, 1996 at 11% interest. A. P482.68 B. P498.58 C. P287.00 D. P532.88 Answer: A 45. A man applied for a loan with 16% interest. The interest will be automatically deducted from the loan at the time the money is released, and after one year will have to pay the same amount as stated in the loan. Determine the interest actually charged to him. A. 16.52% B. 12.46% C. 19.05% D. 14.56% Answer: C 46. If the future is 25% more than the principal after 8 months, determine the simple interest rate. A. 26.34% B. 18.56% C. 15.67% D. 37.5% Answer: D 47. A bank charges 12% simple interest on a P300 loan. How much will be paid if the loan is paid back in one lump sump after three years? A. P408 B. P415 C. P551 D. P450 Answer: A 48. P50,000.00 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days? A. P5,166.67 B. P5,166.38  C. P5,666,67 D. P6,666.67 Answer: A 49. A man deposit P10,000 at 12 percent simple interest. What is the future amount after 5 years and 5 months using ordinary simple interest. A. P16,500 B. P18,500 C. P20,500 D. P22,500 Answer: A 50. Fred wanted to buy refrigerator which will have a price of P13,000 for 90 days from now due to the increase in prices of 12 percent simple interest. What is the present worth of refrigerator? A. P12,621 B. P13,621 C. P14,621 D. P15,621 Answer: A