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Engineering Economics

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

Gross margin
Profit margin ratio
Current ratio
Price-earnings ratio

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

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Perfect information and absence of all economic friction
Homogeneous product
Free market entry and exit
All of these

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Engineering Economics
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is:

a - (n - 1) b
a + (n - 1) b
a × (n - 1) b
a + (n + 1) b

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Engineering Economics
The original record of a business transaction is recorded in this book.

Ledger
Journal
Work book
Account book

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Engineering Economics
A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.

0.1195
0.1175
0.1232
0.115

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