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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Gross margin
Price-earnings ratio
Current ratio

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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?

Equity
Return
Dividend
Par value

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Engineering Economics
“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:

Law of supply
Law of diminishing return
Law of supply and demand
Law of demand

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Engineering Economics
A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

1.2 hours per unit
1.4 hours per unit
1.6 hours per unit
1.0 hour per unit

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Engineering Economics
“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 the demand being equal.” This statement is known as the:

Law of demand
Law of supply and demand
Law of supply
Law of diminishing return

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Engineering Economics
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

P 1,122.70
P 1,155.06
P 1,144.81
P 1,133.78

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