What is the opposite of perfect competition?
AMonopsony
BOligopoly
COligopsony
DMonopoly
ESAS · Question Bank
Engineering Economics
186 questions · page 2 of 10. Answer in your head first, then check the solution.
Perfect monopoly exists only if:
Athe single vendor can prevent the entry of all other vendors in the market
Bthe single vendor gets the absolute franchise of the product
Cthe single vendor is the only one who has the permit to sell
Dthe single vendor is the only one who has the knowledge of the product
A _______ is a market situation where economies of scale are so significant that costs are only minimized when the entire output of an industry is supplied by a single producer so that supply costs are lower under monopoly than under perfect competition
Aperfect monopoly
Bbilateral monopoly
Cnatural monopoly
Dordinary monopoly
"When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output". This statement is known as the:
ALaw of diminishing return
BLaw of supply
CLaw of demand
DLaw of supply and demand
What refers to the amount of product made available for sale?
ASupply
BDemand
CProduct
DGood
"Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and demand being equal" This statement is known as the:
ALaw of diminishing return
BLaw of supply
CLaw of demand
DLaw of supply and demand
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?
AUtility
BNecessity
CCommodity
DStock
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?
AEffective rate of interest
BNominal rate of interest
CCompound interest
DSimple interest
Under ordinary simple interest, how many days is one year?
A300
B360
C365
D366
One banker's year is equivalent to _______ days
A300
B360
C365
D366
What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?
APresent worth factor
BInterest rate
CTime value of money
DYield
The difference between the present and future worth of money at some time in the future is called ________
Adiscount
Bdeduction
Cinflation
Ddepletion
What refers to the present worth of the probable future net earnings?
ATotal fair value
BTotal market value
CGoing concern value
DEarning value
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?
AReturn of investment
BInterest rate
CYield
DRate of return
What is defined as the interest of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?
AEffective rate of interest
BNominal rate of interest
CCompound interest
DSimple interest
What refers to the cost of borrowing money or the amount earned by a unit principal per unit of time?
AYield rate
BRate of return
CRate of interest
DEconomic return
What is the term for an annuity with a fixed time span?
AOrdinary annuity
BPerpetuity
CAnnuity certain
DAnnuity due
What is the type of annuity where the payments are made at the end of each period starting from the first period?
AOrdinary annuity
BPerpetuity
CAnnuity due
DDeferred annuity
What is the type of annuity where the payments are made at the beginning of each period starting from the first period?
AOrdinary annuity
BPerpetuity
CAnnuity due
DDeferred annuity
Which is NOT an essential element of an ordinary annuity?
AThe amount of all payments are equal
BThe payments are made at equal interval of time
CThe first payment is made at the beginning of the first period
DCompound interest is paid on all amounts in the annuity