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Engineering Economics

Engineering Economics
What is a market situation whereby there is only one buyer of an item for which there is no goods substitute?

Oligopoly
Monopsony
Oligopsony
Monopoly

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Demand depreciation
Physical depreciation
Functional depreciation
Design depreciation

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Engineering Economics
Oligopoly exists when there is/are:

One seller and few buyers
Few sellers and few buyers
Few sellers and many buyers
Many sellers and few buyers

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Engineering Economics
In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

Sum-of-year digit method
Straight line method
Sinking fund method
Declining balance method

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

The initial depreciation is low
Unstable economy
The initial deprecation is high
Rate of interest cannot be exactly determined

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Engineering Economics
The ratio obtained by dividing 'quick assets' by current liabilities is called

Acid test ratio
None of these
Turnover ratio
Solvency ratio

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MORE MCQ ON Engineering Economics

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