Information Systems And Engineering Economics Set 22

Computer Science Engineering (CSE)

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This set of Information systems and engineering economics Multiple Choice Questions & Answers (MCQs) focuses on Information Systems And Engineering Economics Set 22

Q1 | Economic decisions differ in a fundamental way from the types of decisions typically encountered in engineering design.
  • TRUE
  • FALSE
Answer: TRUE
Q2 | ENGINEERING ECONOMICS INVOLVES
  • formulating
  • estimating
  • evaluating economic outcomes
  • all
Answer: all
Q3 | The factors of time and uncertainty are the de?ning aspects of any engineering economic decisions
  • TRUE
  • FALSE
Answer: TRUE
Q4 | engineering economic decision refers to all investment decisions relating to engineering projects.
  • TRUE
  • FALSE
Answer: TRUE
Q5 | engineering economic decision is the evaluation of costs and benef associated with making a capital investment.
  • TRUE
  • FALSE
Answer: TRUE
Q6 | The factors of and uncertainty are the de?ning aspects of any engineering economic decisions
  • time
  • investment
Answer: time
Q7 | Additional risk is not taken without an expected additional return of suitable magnitude
  • TRUE
  • FALSE
Answer: TRUE
Q8 | Money has a time value because it can earn more money over time (earning power).
  • TRUE
  • FALSE
Answer: TRUE
Q9 | F dollars at the end of period N is equal to a single sum P dollars now, if your earning power is measured in terms of interest rate i.
  • TRUE
  • FALSE
Answer: TRUE
Q10 | Initial amount of money in transactions involving debt or investments is called the principal (P).
  • TRUE
  • FALSE
Answer: TRUE
Q11 | engineering economic decision is the evaluation of costs and benef associated with making a capital .
  • expenditure
  • investment.
Answer: investment.
Q12 | Initial amount of money in transactions involving debt or investments is called  
  • interest
  • principal
Answer: principal
Q13 | Marginal revenue must exceed marginal cost, in order to carry out a pro?table increase of operations
  • TRUE
  • FALSE
Answer: TRUE
Q14 | A plan for receipts or disbursements (An) that yields a particular cash ?ow pattern over a speci?ed length of time is called monthly equal payment
  • TRUE
  • FALSE
Answer: TRUE
Q15 | At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?
  • -5000
  • -4000
  • -2000
  • -3000
Answer: -3000
Q16 | If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years?
  • 4200
  • 4287
  • 5000
Answer: 4287
Q17 | Money has a time value because its purchasing power changes over time (in?ation).
  • TRUE
  • FALSE
Answer: TRUE
Q18 | Interest is the cost of moneyas a cost to the borrower and an earning to the lender
  • TRUE
  • FALSE
Answer: TRUE
Q19 | Cash Flow is the movement of money (in or out) of a project
  • TRUE
  • FALSE
Answer: TRUE
Q20 | Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest
  • 1200
  • 1259.71
Answer: 1259.71
Q21 | Economic equivalence refers to the fact that a cash ?ow-whether a single payment or a series of payments-can be converted to an equivalent cash ?ow at any point in time.
  • TRUE
  • FALSE
Answer: TRUE
Q22 | If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N.
  • TRUE
  • FALSE
Answer: TRUE
Q23 | A fund accumulated by periodic deposits and reserved exclusively for a speci?c purpose, such as retirement of a debt
  • sinking fund
  • principal
  • interest
Answer: sinking fund
Q24 | A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some speci?c purpose is sinking fund
  • TRUE
  • FALSE
Answer: TRUE
Q25 | Suppose that you invest $1 for 1 year at 18% compounded monthly. How much interest would you earn?
  • 19.56 % compounded annu
  • 18.56 % compounded a
  • 20.56 % compounded annually
Answer: 19.56 % compounded annu
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