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Engineering Economics

Engineering Economics
What is considered as the basic consuming or demanding unit of a commodity?

Seller
Buyer or consumer
Producer
Manufacturer

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

$ 5,025,000.00
$ 5,050,000.00
$ 5,010,000.00
$ 5,000,000.00

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

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Engineering Economics
What is another term for “unit method” for computing depletion?

Sinking fund method
Percentage method
Initial cost method
Factor method

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

Price-earnings ratio
Gross margin
Current ratio
Profit margin ratio

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,540.56
P 2,544.45
P 2,504.57
P 2,500.57

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