Construction Management (2180611) MCQ

MCQs of Construction Economics

MCQ No - 1

In which situations does the economic decision making is required?

(A) Comparison of Design
(B) Design for Economy in production
(C) Economy and size
(D) All of the above

MCQ No - 2

Which of these is not a method of economic decision making?

(A) Total cost method
(B) Our-of-pocket commitment
(C) Payback period
(D) Average annual rate of return

MCQ No - 3

What would be the payback period of excavator generating annual return of Rs. 70000 and initial cost Rs. 350000 and service life 7 years?

(A) 2 Years
(B) 3 Years
(C) 4 Years
(D) 5 Years

MCQ No - 4

Out-of-pocket commitment of Option A is Rs. 1000000 and Option B is 1050000. Which option is beneficial?

(A) Option A
(B) Option B
(C) Both A & B
(D) None of the above

MCQ No - 5

Average annual rate of return of equipment X and equipment Y is 12% and 14% respectively. Which equipment will be more profitable to purchase?

(A) Equipment X
(B) Equipment Y
(C) Both X and Y
(D) Renting of X