This occurs in a situation where a commodity or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market
Aperfect competition
Bmonopsony
Cmonopoly
Dcartel
ESAS · Question Bank
Engineering Economics
208 of 208 questions match · page 10 of 11. Answer in your head first, then check the solution.
These are products or services that are desired by human and will be purchased if money is available after the required necessities have been obtained
Acommodities
Bnecessities
Cluxuries
Dsupplies
Grand total of the assets and operational capability of a corporation
Aauthorized capital
Bpaid off capital
Csubscribed capital
Dinvestment
The length of time which the property may be operated at a profit
Alife span
Beconomic life
Coperating life
Dprofitable life
The right and priviledge granted to an individual or corporation to do business in a certain region
Apermit
Broyalty
Clicense
Dfranchise
The worth of an asset as shown in the accounting records of an enterprise
Afair value
Bpar value
Cmarket value
Dbook value
A loan that is discharged or repaid by uniform series of payments extending over its duration is said to be
AFunded
BDepreciated
CAmortized
DBonded
A market condition where there are two buyers and two sellers is called ____.
ADuopoly
BDuopsony
CBilateral oligopoly
DBilateral duopoly
It is the interest earned by the principal which is added to the principal and will also earn an interest for the succeeding periods.
ACompounding interest
BSimple interest
CDiscount
DInterest rate
It is the payment for the use of borrowed money
ALoad
BInterest
CMaturity value
DPrincipal
What best defines “annuity”?
AA series of equal payments occurring at the equal periods of time
BFirst payment does not begin until some later date
CValue of the stock as stated on the stock certificate
DDifference between the present value and the worth of money at some time in the future
What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?
ABook value
BMarket value
CFair value
DFranchise value
A type of annuity where the payments are made at the start of each period, beginning from the first period
AOrdinary annuity
BAnnuity due
CDeferred annuity
DPerpetuity
Which of the following is not taken into account in making an economic decision between two alternative equipment?
AReliability
BOperating cost
CRate of return
DSalvage value
What is another term for “acid-test ratio”?
AQuick ratio
BPrice-earning ratio
CCurrent ratio
DProfit margin ratio
Capitalized cost of any property is equal to the
AAnnual cost
BFirst cost + interest of the first cost
CFirst cost + cost of perpetual maintenance
DFirst cost + salvage value
Which of the following statement is not correct?
AA nominal rate of 12% per annum compounded quarterly is the same as 12% ÷ 4 = 3% per quarter.
BOne dollar compounded quarterly at 3% for n years has a worth of \((1.03)^{4n}\) dollars.
CCompounding quarterly at a nominal rate of 12% per year is equivalent to compounding annually at a rate of 12.55%
DEffective rate of return in choices (A) through (C) is the difference between 12.55% and 12%
Which of the following corresponds to the meaning of annuity?
AA lump sum at the end of the year
BAn annual repayment of the loan
CA series of uniform amounts over a period of time
DThe future worth of a present amount
The ability to convert assets to cash quickly is known as ____
ASolvency
BLiquidity
CLeverage
DInsolvency
What is the opposite of perfect competition?
AMonopsony
BOligopoly
COligopsony
DMonopoly