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WorksheetsEngineering Economics Reviewer (Goodluck! - jinny)
Total questions: 45
Worksheet time: 1hrs 22mins
These are products or services that are directly used by people to satisfy their wants.
Producer goods and services
Necessities
Consumer goods and services
Luxuries
These are products or services that are desired by humans and will be purchased if money is available after required necessities have been obtained.
Supply
Producer goods and services
Luxuries
Consumer goods and services
Occurs in a situation where a community or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market.
Monopoly
Perfect Competition
Oligopoly
Demand
These are used to produce consumer goods or services or other producer's goods.
Consumer goods and services
Necessities
Supply
Producer goods and services
Products or services that are required to support human life and activities that will be purchased in somewhat the same quantity even though price varies considerably.
Necessities
Luxuries
Supplies
Exists when there are so few suppliers of a product or service that action by one will almost inevitably result in similar action by the others.
Perfect Competition
Oligopoly
Monopoly
This exists when a unique product or service is available from a single vendor and that vendor can prevent the entry of all others into the market.
Perfect Competition
Oligopoly
Monopoly
The quantity of a certain commodity that is bought at a certain price at a given place and time.
Demand
Supply
The quantity of a certain commodity that is offered for sale at a certain price at a given place and time.
Supply
Demand
Occurs when a mathematical product of volume and price is constant.
Inelastic Demand
Unitary Elasticity of Demand
Elastic Demand
Occurs when a decrease in selling price produces a less than proportionate increase in sales.
Inelastic Demand
Unitary Elasticity of Demand
Elastic Demand
Occurs when a decrease in selling price produces a less than proportionate increase in sales.
Inelastic Demand
Unitary Elasticity of Demand
Elastic Demand
The higher the price, the higher the quantity supplied.
Law of Supply
Law of Demand
Law of Diminishing Return
If all other factors are equal, the higher the price of a good, the less people demand that goods.
Law of Supply
Law of Demand
Law of Diminishing Return
When the use of one factors of production is limited, either in increasing cost or by absolute quantity, a point will be reached beyond which an increase in the variable factors will result in a less than proportionate increase in output.
Law of Supply
Law of Demand
Law of Diminishing Return
Computed based on exact number of days in one year.
Exact Simple Interest
Simple Interest
Ordinary Simple Interese
Computed based on the I Banker year.
Simple Interest
Ordinary Simple Interest
Exact Simple Interest
Denoted as I, interest on a loan or principal that is based only on the original amount.
Simpe Interest
Compound Interest
Effective Rate of Interest
Graphical representation of cash receipts and disbursements over a certain time span.
(a)
How many days does the banker year or rule have?
365
366
355
360
What is the formula for simple interest?
F = P + i
I = Pin
N = PIi
I = P + i
The formula for continuous compounding is?
F = P + i
F =P(1 + min)nm
I = Pin
This is the type of interest that follows the principle "interest on top of interest."
(a)
Positive cash flow or cash inflow
(a)
Negative cash flow or cash outflow
(a)
COMPUTATION
A man borrowed money from a loan shark, he receives from the loan shark an amount of $1,342.00 and promised to repay $1500.00 at the end of 3 quarters. What is the simple interest rate?
25.3%
15.69%
17.23%
PASS
Determine the exact simple interest on $500 for the period from January 10 to October 28, 1996 at 16% interest.
$76.83
$103.83
$63.83
$53.85
Cash flows may be positive or negative.
TRUE
FALSE
Defined as the series of equal payments occurring at equal interval of time.
Interest
Annuity
Depreciation
What is the formula for Ordinary Annuity?
P =Pin
P = (P + i)n
P = i (1 + i)nA[(1 + i)n − 1]
A type of annuity where the first payment does not begin until some later date in the cash flow.
Ordinary Annuity
Deferred Annuity
A type of annuity where the payments are made at the beginning of each period starting from the first period.
(a)
Does not have fixed time span but continues indefinitely.
Annuity Due
Deferred Annuity
Perpetuity
Ordinary Annuity
The sum of perpetuity is not an infinite value.
TRUE
FALSE
COMPUTATION
What present sum would be needed for annual end of year payments of $15,000.00 each forever if money is worth 8%.
$187,500.00
$185,500.00
$120,250.00
PASS
In this method, the loss in value is considered to be directly proportional to the age of the property.
Sinking Fund Method
Straight Line Method
Declining Balance Method
Sum of Year Digit Method
COMPUTATION
An asset is purchased for $9,000.00 its estimated life is 10 years after which it will be sold for $1,000. Find the book value during the 5th year if sum of the year's digit method is used.
$1500.00
$1454.55
$1752.55
PASS
It is established in which funds will accumulate for replacement purposes.
Sinking Fund Method
Straight Line Method
Declining Balance Method
Sum of Year Digit Method
COMPUTATION
An equipment costs $10,000.00 with a salvage value of $500.00 at the end of 10 years, calculate the annual depreciation cost using straight line method at 4% interest.
$1050.00
$500.00
$950.00
PASS
COMPUTATION
An equipment costs $10,000.00 with a salvage value of $500.00 at the end of 10 years, calculate the annual depreciation cost using sinking fund method at 4% interest.
$791.26
$154.22
$1267.00
PASS
This is the reduction in the value of an asset with passage of time, due in particular to wear and know.
Depreciation
Annuity
Perpetuity
Simple Interest
You can depreciate LAND, ANTIQUES, and PERSONAL PROPERTY.
TRUE
FALSE
COMPUTATION
The host of equipment is $500,000 and the cost of installation is $30,000. If the salvage value is 10% of the cost of equipment at the end of 5 years, determine the book value at the end of fourth year using the straight line method?
$156,000.00
$146,000.00
$166,00.00
PASS
Defined as a series of equal payments occurring at equal interval of time.
(a)
COMPUTATION
Determine the ordinary simple interest in $700 for eight months and 15 days if the rate of interest is 15%?
$76.375
$75.375
$74.375
PASS
