Engineering Economics Exam 1

It is the amount which a willing buyer will pay to a willing seller for a property where each has equal advantage and is under no compulsion to buy or sell. A. Book value B. Fair value C. Market value D. Salvage value {Ans: C}Double taxation is a disadvantage of which business organization? A. Corporation B. Enterprise C. Partnership D. Sole proprietorship {Ans: A}It denotes the fall in the exchange rate of one currency in terms of others. The term usually applies to floating exchange rates. A. Currency appreciation B. Currency devaluation C. Currency depreciation D. Currency float {Ans: C}The function of interest rate and time that determines the cumulative amount of a sinking fund resulting from specific periodic deposits. A. Capacity factor B. Demand factor C. Present worth factor D. Sinking fund factor {Ans: D}The change in cost per unit variable change is known as A. fixed cost B. incremental cost C. semi-variable cost D. sunk cost {Ans: B}Which is an example of an intangible asset? A. Cash B. Furnitures C. Investment in subsidiary companies D. Patents {Ans: D}