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Engineering Economics

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

Price-earnings ratio
Profit margin ratio
Current ratio
Gross margin

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Engineering Economics
What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents?

Deflation
Depletion
Inflation
Depreciation

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Engineering Economics
What is the change in cost per unit variable change called?

Variable cost
Incremental cost
Supplemental cost
Fixed cost

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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
What is another term for “current assets”?

Fixed assets
Non-liquid assets
Liquid assets
Ccash

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Engineering Economics
Which one of the following is not a construction estimate?

Definite estimate
None of these
Initial feasibility estimate
Conceptual preliminary budget

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