Marathwada Mitra Mandal’s

College of Engineering
Accredited with NBA and 'A' Grade by NAAC
Department of Mechanical Engineering
A.Y. 2020-21 MCQs SEM-II
Class: B. E.
Course: Energy Audit and management Unit 3: Energy Economics
Q. No. Description
1 For economy in generation power
(A) Diversity factor should be high
(B) Plant utilization factor should be high
(C) Load factor should be high
(D) Load factor and diversity factor should be low.
2 Which of the following category of consumers can provide highest load factor?
(A) A domestic consumer
(B) A continuous process plant
(C) A steel melting unit using arc furnace
(D) A cold storage plant.
3 The load of a consumer is generally measured in terms of
(A) Volts
(B) Amperes
(C) Ampere hour
(D) kW.
4 Load factor during a period is
(A) Average Load / Installed Capacity
(B) Average Load / Maximum Load
(C) Maximum Load / Average Load
(D) Maximum Load / Installed Capacity.
5 A fuse wire should have
(A) Low specific resistance and high melting point
(B) Low specific resistance and low melting point
(C) High specific resistance and high melting point
(D) High specific resistance and low melting point.
6 The power factor of the arc in circuit breaker is
(A) always zero
(B) always unity
(C) always lagging
(D) always leading.
7 Layout planning is required because of:
1. Efficient operations
2. Accidents or safety hazards
3. New products or services
4. Morale problems
A) I and II B) II and IV C) I and III D) II, III, and IV
8 Demand factor is the
(A) Maximum Demand / Average Demand
(B) Maximum Demand / Connected Load
(C) Average Demand / Maximum Demand
(D) Connected Load / Maximum Demand.
9 In a system if the base load is the same as the maximum demand, the load factor will be
(A) 1
 (B) Zero
(C) Infinity
(D) 1 percent.
10 A system having connected load of 100 kW, peak load of 80 kW. base load of 20 kW and
average load of 40 kW, will have a load factor of
(A) 40%
(B) 50%
(C) 60%
(D) 80%.
11 A consumer finds that after running 10 kVA equipment on full load for six hours his energy
consumption was 48 kW. It can be concluded that
(A) The load factor of the consumer for the day was unity
(B) The maximum demand of the consumer was 10 kW
(C) The equipment was drawing reactive power only
(D) Power factor of the equipment was 0.8.
12 The ratio, maximum demand of the installation / sum of individual maximum demands is
known as
(A) Demand factor
(B) Plant use factor
(C) Diversity factor
(D) Plant capacity factor.
13 Five consumers having peak demands of A, B, C, D, and E have individual load factors of
0.5. It can be concluded that
(A) Their combined load factor will be 0.5
(B) Their peak demand during the day will be (A + B + C + D + E)
(C) Their combined power consumption in a day will be 12 (A + B + C + D + E)
(D) Their average demands are equal
14 A power station has annual load factor of 50% and capacity factor of 40%. If the maximum
demand is 15 MW, the reserve capacity of the plant is.
(A) 1250 kw
(B) 2500 kw
(C) 3750 kw
(D) 4750 kw
15 The annual peak load on a 30 MW power station is 25 MW. The power station supplies
loads having maximum demands of 10 MW, 8.5 MW, 5 MW and 4.5 MW. The annual load
factor is 45%. The average load is
(A) 1025 kW
(B) 1125 kW
(C) 1425 kW
(D) 1625 kW
16 Total energy supplied in a year is
(A) 9,875,000 kWh
(B) 8345,000 kWh
(C) 7450,000 kWh
(D) 6395,000 kWh.

17 Diversity factor is
(A) 3.80
(B)1.02
(C) 1.12
(D) 1.22.
18 Demand factor is
(A) 0.75
 (B) 0.83
(C) 0.89
(D) 0.45.
19 Power generation equipment in a thermal power plant costs Rs 15,75,000 and has a useful
life of 25 years. If the salvage value of the plant be Rs 75,000 and the rate of annual
compound interest be 5% the amount of annual instalment by straight line method will be
(A) Rs. 30,000
(B) Rs. 60,000
(C) Rs. 60,500
(D) Rs. 60,750
20 In the above case, which of the following could be the amount to be saved annually for
replacement of equipment after the end of 25 years, by sinking fund method?
(A) Rs. 31,400
(B) Rs. 60,000
(C) Rs 66,000
(D) Rs. 96,500.
21 Which of the following could be the instalment for diminishing value method?
(A) Rs. 96,000
(B) Rs. 60,000
(C) Rs 48,500
(D) Rs. 31400
22 Fault diverters are basically
a) Circuit breakers
b) Fast switches
c) Relays
d) Fuses
23 In straight line method of depreciation, the money deposited carries
a) A straight line interest
b) No interest
c) Compound interest
d) Fixed interest
24 Factors involved in fixing tariffs are
a) Secured return from each consumer
b) Simplicity, cheapness and easy explain ability
c) Incentive to consumers and change according to use
d) All of these
25 The power factor in a transformer
a) is always unit
b) is always leading
c) is always lagging
d) depends on the power factor of load
26 Peak load plants supply power at
a) Low capital cost and low running cost
b) High capital cost and high running cost
c) Low capital cost and high running cost
d) Low capital cost and low running cost
27 Connected load is sum of
a) Maximum load consumed per year
b) Maximum load consumed any particular time
c) Continuous rating of load-consuming apparatus connected
d) None of these
28 Baseload plants supply power at
a) Low capital cost and low running cost
b) Low capital cost and high running cost
c) High capital cost and high running cost
d) High capital cost and low running cost
29 Cold reserve is the reserve which is
a) Available for use but is not in service
b) Available for service but is not in use
c) Always available
d) Connected to the bus and ready to take load
30 Hydroelectric generators are
a) Stationary field type
b) Cylindrical rotor type
c) Double cage rotor type
d) Salient pole type
31 Spinning reserve is that generating capacity, which is
a) Connected to the bus bar and is ready to take load
b) Always available
c) Available for service but not in use
d) Available for use but not in service
32 Diversity factor reduces
a) simultaneous maximum demand on stating for same individual demands
b) capital cost for the station
c) overall rate for generation of electricity
d) all of these
33 For centralized excitation system, number of exciters used are
a) more than generating units
b) less than generating units
c) equal to generating units
d) uncertain
34 Station maximum demand is mostly dependent upon
a) line losses
b) domestic consumers
c) industrial consumers
d) all of these
35 For greater power system stability, speed of the exciter response should always
a) decrease
b) increase
c) remain
d) zero
36 Load factor is defined as
a) Maximum demand/average demand
b) Average demand/Maximum demand
c) Maximum demand/Peak load
d) Maximum demand/Minimum load
37 In flat rate tariffs, rate is fixed by taking into account their
a) diversity factor
b) load factor
c) plant use factor
d) a and b
38 Speed drop of governor means
a) reduction in speed as load changes from no load to full load
b) increase in speed as load changes from no load to full load
c) degree of speed changes needed to cause a change in the output of turbine
d) none of these
39 Consumers pay less fixed charges in
a) two part tariff
b) flat rate tariff
c) block rate tariff
d) maximum demand tariff
40 While determining the regulation of an alternator by actual test, constant parameters are
a) short circuit current and excitation
b) speed and excitation
c) voltage and current
d) speed and current
41 Generators kept for spinning reserve are
a) not in operation
b) kept running on light loads
c) kept running on heavy loads
d) none of these
42 Maximum demand for a bulk consumer is measured in
a) KV
b) KVA
c) KVAR
d) KW
43 Incremental rate is defined as
a) Rate of change of given input
b) Ratio of change in input to change in output
c) Ratio of rate of change of output to input
d) Ratio of rate of change of input to rate of change of output
44 Operating plant factor is
a) Average load on the machine
b) Ratio of average load to the plant capacity
c) Ratio of maximum load to peak load
d) Ratio of average load to maximum load
45 If load factor is varied; in two part tariff
a) Running cost is affected
b) Fixed cost is affected
c) Both (a) and (b)
d) Depreciation is affected
46 Economical loading based on incremental rate gives
a) Best thermal efficiency
b) Break thermal efficiency
c) Overall efficiency
d) Turbine efficiency
47 By interconnection of stations, the cost is
a) Increased
b) Reduced
c) Same as before
d) Uncertain
48 Different methods of prices charging is called
a) Tariff
b) KVAR method
c) KW method
d) KVA method
49 Frequency of the system
a) Should be constant
b) Need not be constant
c) Can be tolerated upto ± 10%
d) Short be unity
50 In the two-part tariff, running charges increases as
a) Maximum energy consumed increases
b) Maximum energy consumed decreases
c) Average energy consumed decreases
d) Average energy consumed increases
51 Power loss is important for the design of
a) Generator
b) Motor
c) Feeder
d) Transmission line
52 When power factor of the load increases, losses in the transmission and distribution lines
a) Increases
b) Decreases
c) Remains same
d) Uncertain
53 Capital cost of the thermal plant depends on
a) Fuel cost
b) Size of the plant
c) Both (a) and (b)
d) Labour charges
54 Alternative source of energy should be utilized such that
a) Fuel used is maximum
b) Generation is maximum
c) Efficient plant should be loaded to maximum
d) Production cost is minimized
55 To improve the overall efficiency of thermal plant
a) Boiler pressure is decreased
b) Load on the units is decreased
c) Initial pressure and temperature and exhaust pressure and temperature are at maximum
d) Additional fuel is used
56 Coincidence factor is always obtained an increase of the
a) Load factor
b) Plant use factor
c) Plant capacity factor
d) Diversity factor
57 Which of the following has highest capital cost?
a) Thermal plant
b) Hydro plant
c) Diesel plant
d) Nuclear plant
58 For conventional power plants, running cost is minimum for
a) Thermal plant
b) Nuclear plant
c) Hydro plant
d) Diesel plant
59 Disadvantage of flat rate tariff is that it is difficult to
a) Arrive at a load factor and diversity factor to decide the tariff
b) Estimate the cost of generation
c) Control the desired power factor
d) All of these
60 If fuel input increases, the load on thermal unit
a) Decreases
b) Increases
c) Remain same
d) Bears no relation
61 Difference between load factor and capacity factor is the indication of
a) Hot reserve
b) Cold reserve
c) Reserve capacity
d) Spinning reserve
62 In KWH and KVAhr tariff, the KVAhr rate is
a) Higher than KWH rate
b) Lower Than KWH rate
c) Equal to KWH rate
d) None of these
63 Power factor is improved by the use of
a) Phase advancer
b) Synchronous compensators or phase modifiers
c) Static capacitors
d) All of these
64 Low power factor be avoided by
a) Using synchronous motors instead of induction motors
b) Using high-speed induction motors to low-speed machines
c) Not operating induction motors at less than rated output
d) All of these
65 Cause of low power factor is
a) Transformer drawing more magnetizing current
b) Extensive use of induction motors
c) Use of arc lamps
d) All of these
66 Disadvantage of low power factor is
a) Cost of station and distribution equipment is more for a given load
b) Low power factor makes voltage regulation poor
c) Bigger sized conductors are required for same energy transmission at low power factor
d) All of these
67 Factors affecting the power system reliability is
a) Flow of power from open
b) Increased ambient air temperature
c) Available reserve capacity margin
d) Nominal transmission voltage levels
68 Which of the following generation station has minimum running cost?
a) Thermal power station
b) Hydro-electric power station
c) Nuclear power station
d) None of these
69 In sinking fund method of depreciation
a) A fixed amount is deposited annually
b) The rate of interest is compounded yearly
c) It requires smaller amount as compared to straight light line method
d) All of these
70 The book value of plant is
a) Cost of plant
b) Accrued depreciation
c) Difference of (a) and (b) above
d) Sum of (a) and (b) above
71 In straight-line method of depreciation, the money to be reserved for depreciation is
a) Inversely proportional to square of time
b) Directly proportional to square of time
c) Inversely proportional to time
d) Directly proportional to time
72 Running cost of power plant is based on the cost of
a) Energy or fuel
b) Consumable items
c) Maintenance and operation
d) All of these
73 The main objective of tariff is to distribute equitably the cost of
a) Energy production among all its consumers
b) Supplying energy among the various classification of users
c) Power transmission and distribution
d) Installation and fuel
74 All types of tariffs must recover the cost of
a) Capital investment in generating equipment
b) Operation, supplies, and maintenance of equipment
c) Metering equipment, billing, collection costs, profit and wages
d) All of these
75 Drawbacks of low power factor are
a) High ratings of generating, transmitting and distributing equipment
b) Large voltage drop and poor voltage
c) Large copper losses and high capital costs
d) All of these
76 Power factor of power system can be improved by
a) Using phase advance, static capacitors, capacitance boosters
b) Unexcited synchronous motors on load
c) Over excited synchronous motors on no load
d) Both (a) and (b) above
77 Diversity factor of a power system is the
a) Ratio of sum of consumer’s maximum demands to maximum load on the station
b) Ratio of average demand to maximum demand
c) Reciprocal of (a)
d) Reciprocal of (b)
78 Economical loading based on the incremental rate gives
a) Maximum conversion efficiency
b) Good energy conversion efficiency
c) Economical demand factor
d) Best system efficiency
79 In reducing balance method of depreciation, the calculation of depreciation in any year is a
fixed proportion of the cost at the
a) Maximum of that particular year
b) Average of that particular year
c) Beginning of the project
d) Beginning of that particular year
80 Depreciation rate is less in the case of
a) Steam power plant
b) Hydro-electric plant
c) Nuclear plant
d) Diesel engine plant
81 In diminishing value method of depreciation
a) A fixed rate is set aside each year
b) Depreciation charges are heavy in early years and maintenance charges are low
c) In later years, maintenance charges are heavy and deprecation charge are low
d) All of these
82 Factors involved in fixing tariffs are
a) Secured return from each consumer
b) Simplicity, cheapness and easy explainability
c) Incentive to consumers and change according to use
d) All of these
Answer Key B. E. Mechanical Course: Energy
Engineering Unit 6: Instrumentation and Economics of Power
Plant
Q. Answer Q. Answer Q. Answer Q. Answer
1 B 23 B 45 A 67 C
2 B 24 D 46 A 68 B
3 D 25 D 47 B 69 D
4 B 26 C 48 A 70 C
5 D 27 C 49 A 71 C
6 B 28 D 50 D 72 D
7 D 29 B 51 D 73 B
8 B 30 D 52 B 74 D
9 A 31 A 53 B 75 D
10 B 32 D 54 D 76 D
11 D 33 B 55 C 77 A
12 C 34 D 56 D 78 D
13 C 35 B 57 D 79 D
14 C 36 B 58 C 80 B
15 B 37 D 59 A 81 D
16 A 38 D 60 B 82 D
17 C 39 D 61 C
18 B 40 B 62 A
19 B 41 B 63 D
20 A 42 B 64 D
21 A 43 B 65 D
22 B 44 B 66 D