MECHANICAL BOARD EXAM REVIEW: ENGINEERING ECONOMY

Here are some questions for the board exam on the topic Engineering Economy.

Instruction: Choose the BEST answer.

1. It is the quantity of production when the income equals total cost.
a. Satiation point
b. Breakeven point
c. Optimal production point
d. Point of production

2. The length of time required to recover the first cost of an investment.
a. Break-even period
b. Payback period
c. Return of investment period
d. Payout period

3. Common term for the certificate of indebtedness
a. Stock
b. Loan
c. Bond
d. Mortgage

4. It represents ordinary share in ownership of the corporations capital without special guarantees of
return.
a. Preferred stock
b. Special stock
c. Common stock
d. Stock option

5. A type of bond where the name of the owner is recorded in the books of the corporation. Interests
are periodically sent to him without claim action.
a. Coupon bond
b. Registered bond
c. Bond paper
d. Corporate bond

6. A type of business organization where two or more persons associate to engage for a business.
a. Single proprietorship
b. partnership
c. Cooperative
d. Corporation

7. A type of business organization which is a distinct legal entity capable of business transactions like a
real person.
a. Cooperative
b. Single proprietorship
c. Corporation
d. Partnership

8. In a partnership type of business, what will happen if one of the owners dies?
a. The partnership will continue
b. The partnership will continue as long as the dead member has been replaced.
c. The partnership automatically dies
d. The partnership will become corporation.

9. It is the decrease in value of a property due to the passage of time.
a. Degradation
b. Depletion
c. Depression
d. Depreciation

10. It is the length of time during which a property may be used for profit.
a. Useful life
b. Physical life
c. Fiscal life
d. Economic life





MECHANICAL BOARD EXAM REVIEW: ENGINEERING ECONOMY
(ANSWERS)

Heres the answer to the last posted Mechanical Board Exam review questions on Engineering Economy.

1. It is the quantity of production when the income equals total cost.
B. Break-even point

2. The length of time required to recover the first cost of an investment.
B. Payback period
D. Payout period

3. Common term for the certificate of indebtedness
C. Bond

4. It represents ordinary share in ownership of the corporations capital without special guarantees of
return.
C. Common stock

5. A type of bond where the name of the owner is recorded in the books of the corporation. Interests
are periodically sent to him without claim action.
B. Registered bond

6. A type of business organization where two or more persons associate to engage for a business.
B. partnership

7. A type of business organization which is a distinct legal entity capable of business transactions like a
real person.
C. Corporation

8. In a partnership type of business, what will happen if one of the owners dies?
C. The partnership automatically dies

9. It is the decrease in value of a property due to the passage of time.
D. Depreciation

10. It is the length of time during which a property may be used for profit.
D. Economic life

MECHANICAL BOARD EXAM QUESTIONS: ENGINEERING ECONOMY
PART 2

With Engineering Economy comprising almost half of Mathematics questions during the board exam, I
think it's a wise choice to really focus additional attention to that subject. Here's the second batch of
questions on Engineering Economy.
Instruction: Choose the BEST answer.

1. It is a depreciation method based on the assumption that the value of a property is directly
proportional to its age.
a. Straight Line Method
b. Sinking Fund Method
c. Declining Balance Method
d. Service Output Method

2. Which of the following is NOT a requirement of a depreciation method?
a. It should be simple
b. It should recover the capital
c. BIR approved
d. The book value should be higher than the market value

3. The decrease in the purchasing power of money
a. Devaluation
b. Depreciation
c. Inflation
d. Depletion

4. Equal periodic payment of a debt.
a. Annuity
b. Amortization
c. Depreciation
d. Bond

5. Minimum number of years required for a bond redemption.
a. 5 years
b. 1 year
c. 10 years
d. 15 years

6. Amount of money spent on a business operation which cannot be recovered due to certain
reason.
a. Fixed cost
b. Sunk cost
c. First cost
d. Increment cost

7. Represents share in the ownership of the capital corporation.
a. Bond
b. Mutual fund
c. Stock
d. Burse

8. It is the actual interest earned by the principal in ONE YEAR.
a. Effective interest
b. Exact interest
c. Simple interest
d. Compounded interest

9. A type of annuity where the payment goes on indefinitely
a. Ordinary annuity
b. Annuity due
c. Perpetuity
d. Deferred annuity

10. An economic situation when there is only one vendor of a product or service.
a. Oligopoly
b. Monopoly
c. Communism
d. Socialism











ANSWERS TO MECHANICAL BOARD EXAM QUESTIONS:
ENGINEERING ECONOMY PART 2




Below are the answer to the questions posted on the subject Engineering Economy.

1. It is a depreciation method based on the assumption that the value of a property is directly
proportional to its age.
A. Straight Line Method

2. Which of the following is NOT a requirement of a depreciation method?
D. The book value should be higher than the market value

3. The decrease in the purchasing power of money
C. Inflation

4. Equal periodic payment of a debt.
B. Amortization

5. Minimum number of years required for a bond redemption.
C. 10 years

6. Amount of money spent on a business operation which cannot be recovered due to certain
reason.
B. Sunk cost

7. Represents share in the ownership of the capital corporation.
C. Stock

8. It is the actual interest earned by the principal in ONE YEAR.
A. Effective interest

9. A type of annuity where the payment goes on indefinitely
B. Perpetuity

10. An economic situation when there is only one vendor of a product or service.
B. Monopoly

If there's something wrong on any of the answer, I would appreciate if you could bring that out
for me. You can email (admin@tupmechanical.com) or just put a comment.