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Engineering Economics

Engineering Economics
The ratio of current assets to current liabilities is known as

Current ratio
Acid-Test (or Quick) ratio
Debts ratio
Liquidity ratio

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Ordinary annuity
Deferred annuity
Annuity due
Perpetuity

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Engineering Economics
First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

0.2
0.19
0.18
0.21

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Engineering Economics
What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

Dividend
Return
Par value
Equity

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Engineering Economics
Annuities involve:

Payment at equal time intervals
All payments of equal amount
A series of payments
All of these

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Engineering Economics
A ______ is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition.

Natural monopoly
Perfect monopoly
Ordinary monopoly
Bilateral monopoly

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