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Syllabus

NEC Civil · Practice

Engineering economics Set 1

68 questions

Question 1

Who is the father of Economics?

A.
Adam Smith
B.
Adam Gilchrist
C.
John Locke
D.
None of the Above

Question 2

Who defined economics as “The practical science of the production and distribution of wealth”?

1

Past-paper practice · set-3-ashadh-20811

Past-paper practice · set-5-ashoj-20811

Foundation fundamentals

Past-paper practice · set-6-ashoj-20811

Bearing capacity and settlement

Past-paper practice · set-2-chaitra-20801 Past-paper practice · set-3-ashadh-20812 Past-paper practice · set-5-ashoj-20811 Past-paper practice · set-8-poush-20811

1

Open-channel flow

Past-paper practice · set-10-chaitra-20812 Past-paper practice · set-2-chaitra-20803 Past-paper practice · set-3-ashadh-20811 Past-paper practice · set-6-ashoj-20811 Past-paper practice · set-8-poush-20812

Hydrology

Past-paper practice · set-10-chaitra-20811 Past-paper practice · set-3-ashadh-20812 Past-paper practice · set-6-ashoj-20811

1

Past-paper practice · set-4-ashadh-20811

Past-paper practice · short-questions-60-1-60-marks1

Determinate structures

Past-paper practice · set-8-poush-20812

Indeterminate structures

Past-paper practice · set-2-chaitra-20801

1

Past-paper practice · set-6-ashoj-20811

Past-paper practice · set-8-poush-20811

1

Past-paper practice · set-6-ashoj-20811

2

Past-paper practice · set-8-poush-20811

Past-paper practice · set-9-poush-20811

Past-paper practice · short-questions-60-1-60-marks1

1

Road construction and maintenance

Past-paper practice · set-3-ashadh-20811

1

Project planning and scheduling

Set 188

Project management

Set 150

Project management

Past-paper practice · set-3-ashadh-20811 Past-paper practice · set-4-ashadh-20811 Past-paper practice · set-8-poush-20811 Past-paper practice · short-questions-60-1-60-marks1

Engineering professional practice

Set 120

Nepal Engineering Council Acts and Regulations

Past-paper practice · set-10-chaitra-20811 Past-paper practice · set-5-ashoj-20811

Nepal Engineering Council Acts and Regulations

Set 130

A.
Adam Smith
B.
J.S. Mill
C.
John Locke
D.
Adam Gilchrist

Question 3

The main division of economics are

A.
Consumption and Production
B.
Exchange and Distribution
C.
All of the Above
D.
None of the Above

Question 4

What is marginal utility?

A.
The change in total utility due to one more/additional unit of consumption.
B.
The level/power of satisfaction to a consumer by consuming goods and services.
C.
It is the utility derived by single unit of consumption.
D.
Both B and C

Question 5

The elements of cost is/are

A.
Material
B.
Labor
C.
Expenses
D.
All the Above

Question 6

The opportunity cost is

A.
The contribution to income that is foregone by not using a limited resource in its best use
B.
The cost that has already been incurred by past actions
C.
Added cost that would result from increasing the rate of output by a single unit
D.
None of the Above

Question 7

The Sunk Cost is

A.
The contribution to income that is foregone by not using a limited resource in its best use
B.
The cost that has already been incurred by past actions
C.
Added cost that would result from increasing the rate of output by a single unit
D.
None of the Above

Question 8

The Marginal Cost is

A.
The contribution to income that is foregone by not using a limited resource in its best use
B.
The cost that has already been incurred by past actions
C.
Added cost that would result from increasing the rate of output by a single unit
D.
None of the Above

Question 9

Compound interest is calculated as

A.
$P(1+i)^{N-1} i$
B.
$P(1+i)N-1 i$
C.
$P(1+i)N-1$
D.
None of the Above

Question 10

The nominal interest rate is

A.
The periodic interest rate multiplied by the number of periods per year
B.
The interest rate that would have earned the same amount of interest in one year
C.
Both of the Above
D.
None of the Above

Question 11

You lend Rs 100 for 3 years at 10% interest compounded annually. How much would you earn interest and get at the end of the three years?

A.
Rs. 123.10
B.
Rs. 133.10
C.
Rs. 113.10
D.
Rs. 143.10

Question 12

Time value of money indicates that

A.
A dollar received today is worth more than a dollar received in the future
B.
A dollar received today is worth less than a dollar received in the future
C.
There is no difference in the value of money obtained today and tomorrow
D.
None of the Above

Question 13

Which of the following best describes the concept of time value of money?

A.
Money is worth more in the present than in the future
B.
Money is worth more in the future than in the present
C.
Money has the same value regardless of when it is received
D.
Money has no value unless it is invested

Question 14

Which of the following is NOT a factor in the time value of money?

A.
Interest Rate
B.
Time Period
C.
Inflation
D.
Tax Rate

Question 15

What is the formula for calculating future value?

A.
$PV = FV / (1 + r)^n$
B.
$FV = PV \times (1 + r)^n$
C.
$FV = PV / (1 + r)^n$
D.
$PV = FV \times (1 + r)^n$

Question 16

Which of the following is a measure of the rate of return on an investment?

A.
Present value
B.
Future value
C.
Net present value
D.
Internal rate of return

Question 17

What will be the relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one?

A.
Effective rate > Nominal rate
B.
Effective rate < Nominal rate
C.
Effective rate = Nominal rate
D.
None of the Above

Question 18

Key factor in determining the time value of money?

A.
Discount rate
B.
Commission
C.
Interest rate
D.
All of the Above

Question 19

Which of the following is incorrect?

A.
The cost of capital refers to the required return needed on a project or investment to make it worthwhile.
B.
The discount rate is the interest rate used to calculate the present value of future cash flows from a project or investment.
C.
Many companies calculate their WACC and use it as their discount rate when budgeting for a new project.
D.
None of the Above

Question 20

Which of the following is correct?

A.
The value of money decreases over time due to inflation
B.
The time value of money is used to evaluate the present value of future cash flows
C.
The time value of money is used in discounted cash flow analysis and investment decision-making.
D.
All of the Above

Question 21

The relationship between effective interest rate 'i' and nominal interest rate 'r' is

A.
$i = (1 + r/M)^M - 1$
B.
$i = (1 + M/r)^M - 1$
C.
$i = (1 + r/M)^M$
D.
$i = (1 + r/M) - 1$

Question 22

Beginning of period cash flows are

A.
Rent
B.
Lease
C.
Insurance payments
D.
All of the Above

Question 23

End of period cash flows are

A.
O & M
B.
Salvages and Revenues
C.
Overhauls
D.
All of the Above

Question 24

Which of the following are used in engineering economics for comparing alternatives?

A.
Cost-Benefit Analysis
B.
Net Present Value and Internal Rate of Return
C.
Benefit Cost Ratio and Pay Back Period
D.
All of the Above

Question 25

If NPV is Positive, this means

A.
The project is expected to generate more cash flows than the initial investment
B.
The project is not expected to generate enough cash-flows to cover the initial investment
C.
Both of the Above
D.
None of the Above

Question 26

The relationship between Economic value added and the net present value is considered as

A.
Valued Relationship
B.
Economic Relationship
C.
Direct Relationship
D.
Inverse Relationship

Question 27

Which of the following is correct?

A.
Inflation is difficult to measure because the prices of different goods and services do not increase or decrease by the same amount
B.
Inflation rates are measured by Wholesale Price Index (WPI), Producer's Price Index (PPI)
C.
Inflation rates are measured by Consumer's Price Index (CPI)
D.
All of the Above

Question 28

Full form of MARR is

A.
Minimum Attractive Rate of Return
B.
Minimum Attract Rate of Return
C.
Minimum Attractive Rate of Reunion
D.
None of the Above

Question 29

MARR is determined by taking which of the following considerations

A.
The amount of money available for investment, and the source and cost of these funds
B.
The number of good projects available for investment and their purpose
C.
The type of organization involved
D.
All of the Above

Question 30

The MARR is

A.
The least interest rate among all alternative projects
B.
An interest rate that must be earned for a project to be accepted
C.
An interest rate that allows an investor to recoup the investment
D.
All of the Above

Question 31

Which of the following best describes the purpose of a minimum attractive rate of return?

A.
To determine the acceptable level of risk for a project
B.
To calculate the internal rate of return for an investment
C.
To set the required rate of return for a lender to loan money
D.
To establish a minimum level of profitability for a company to undertake an investment

Question 32

What is the significance of the minimum attractive rate of return for a company?

A.
It determines the maximum price the company is willing to pay for an asset
B.
It sets the lower limit for the rate of return the company will accept from an investment
C.
It determines the minimum interest rate the company will pay on loans
D.
It sets the minimum price the company will sell its stock for

Question 33

Which of the following is not correct about Payback period?

A.
Number of years required to recover the initial investment is called payback period.
B.
It focus on liquidity
C.
It is a measure of profitability
D.
It does not consider cash flows of entire life of project

Question 34

The net initial investment is divided by uniform increasing in future cash flows to calculate

A.
Discounting Period
B.
Investment Period
C.
Earning Period
D.
Payback Period

Question 35

Which of the statement is true?

A.
The payback period is simple to calculate and understand.
B.
The payback period ignores cash flows after the payback point has been reached
C.
It does not takes account of the time value of money
D.
All of the Above

Question 36

Which of the following is demerits of payback period?

A.
It ignores the time value of money
B.
Does not consider cash flows of entire life of project
C.
Both A and B
D.
Focus on liquidity

Question 37

In simple payback period of uniform cash flow, if Calculated Payback Period < Standard Payback Period

A.
Accept the Project
B.
Reject the Project
C.
Accept/Reject the project
D.
Depends

Question 38

Internal Rate of Return is

A.
Rate at which discounted cash inflow is more than discounted cash outflow
B.
Rate at which discounted cash inflow is less than discounted cash outflow
C.
Rate at which discounted cash inflow is equal to the discounted cash outflow
D.
None of the Above

Question 39

Which of the following statements is not correct regarding the internal rate of return (IRR) method?

A.
Each project has a unique internal rate of return.
B.
The internal rate of return does not consider the time value of money.
C.
The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.
D.
All of the Above

Question 40

What is the interest rate of return used for in financial analysis?

A.
To determine the minimum acceptable return on an investment
B.
To evaluate the profitability of a project or investment
C.
To set the minimum interest rate a company will pay on loans
D.
To determine the maximum price a company is willing to pay for an asset

Question 41

The interest rate of return is an important factor in:

A.
Determining the value of a stock
B.
Deciding whether to invest in a company
C.
Setting the minimum interest rate a company will pay on loans
D.
Both A and B

Question 42

The external rate of return (ERR) refers to

A.
The rate of return generated by a project or investment compared to the cost of the capital used to finance it
B.
The rate of return generated by a project or investment compared to the market rate of return
C.
The rate of return generated by a project or investment compared to the inflation rate
D.
The rate of return generated by a project or investment compared to the government benchmark rate

Question 43

Break even analysis is

A.
Point at which revenue is equal to cost
B.
Point where no profit is made nor any loss is incurred
C.
Both of the Above
D.
None of the Above

Question 44

Which of the following are equivalent worth methods?

A.
Present Worth
B.
Future Worth
C.
Annual Worth
D.
All of the Above

Question 45

The future worth is calculated as

A.
$FW(i%) = \sum_{k=0}^{N} F_k (1+i)^{N-k}$
B.
$FW(i%) = \sum_{k=0}^{N} F_k (1-i)^{N-k}$
C.
$FW(i%) = \sum_{k=0}^{N} F_k (1+i)^{k-N}$
D.
$FW(i%) = \sum_{k=0}^{N} F_k (1+i)^{k-k}$

Question 46

The Annual Worth is calculated as

A.
$E-R-CR(1%)$
B.
$R-E-CR(1%)$
C.
$I-E-CR(1%)$
D.
$R-I-CR(1%)$

Question 47

What is Depreciation?

A.
Decrease in the value of assets due to their use in production process or reduction in market value or obsolescence
B.
Possession of assets over liabilities
C.
Both of the Above
D.
None of the Above

Question 48

The main objective of Depreciation is?

A.
To reduce tax
B.
To calculate net profit
C.
To show previous profit
D.
All of the Above

Question 49

Depreciation is generally generated due to

A.
Decrease in the value of Assets
B.
Decrease in Capital
C.
Wear and Tear
D.
All of the Above

Question 50

The main purpose of depreciation are

A.
Replacement of assets, exact pricing of the product
B.
Prevent from consuming capital, reduction of tax liability directing investment towards intended area
C.
Providing source of finance
D.
All of the Above

Question 51

Types of depreciation are

A.
Tax depreciation
B.
Economic depreciation
C.
Both of the Above
D.
None of the Above

Question 52

Nepal exercised various rates of depreciation system prescribed by

A.
Income tax act, 2002
B.
Income tax act, 2003
C.
Income tax act, 2004
D.
Income tax act, 2005

Question 53

Depreciation is not allowed on which of the following asset types

A.
Trading stock
B.
Business asset
C.
Non-business chargeable asset
D.
All of the Above

Question 54

Types of pool for depreciation

A.
Pool A and Pool B
B.
Pool C and Pool D
C.
Pool E
D.
All of the Above

Question 55

Furniture and Fixture, Office Equipment and computer falls on which pool group

A.
Pool A
B.
Pool B
C.
Pool C
D.
Pool D

Question 56

Automobiles, bus and mini bus falls on which pool group

A.
Pool A
B.
Pool B
C.
Pool C
D.
Pool D

Question 57

Rate of Depreciation as per Income Tax Act 2058 for Pool A

A.
5 %
B.
10 %
C.
15 %
D.
20 %

Question 58

Rate of Depreciation as per Income Tax Act 2058 for Pool B

A.
10 %
B.
20 %
C.
25 %
D.
30 %

Question 59

Rate of Depreciation as per Income Tax Act 2058 for Pool C

A.
5 %
B.
10 %
C.
15 %
D.
20 %

Question 60

Rate of Depreciation as per Income Tax Act 2058 for Pool D

A.
5 %
B.
10 %
C.
15 %
D.
20 %

Question 61

The Accelerated rate of depreciation is calculated by adding

A.
1/3 of its own rate to individual pool of assets
B.
2/3 of its own rate to individual pool of assets
C.
1/5 of its own rate to individual pool of assets
D.
2/5 of its own rate to individual pool of assets

Question 62

Can we claim depreciation on all depreciable assets?

A.
Yes
B.
No
C.
May be
D.
Depends on situation

Question 63

The criteria that need to be fulfill to claim depreciation for tax purposes?

A.
The Asset must be owned by the person claiming the depreciation
B.
The asset must be used during the income year
C.
The asset should be a fixed asset and asset must be used for the production of income
D.
All of the Above

Question 64

What is the current corporate tax rate in Nepal for the fiscal year 2022/23?

A.
20%
B.
25%
C.
30%
D.
15%

Question 65

Which of the following entities are subject to corporate tax in Nepal?

A.
Public limited companies
B.
Private limited companies
C.
Partnerships
D.
All of the Above

Question 66

Which of the following expenses can be deducted from a company's taxable income in Nepal?

A.
Salary and wages
B.
Rent and utilities
C.
Depreciation and amortization
D.
All of the above

Question 67

What is the penalty for late filing of corporate tax returns in Nepal?

A.
0.5% of the tax due per month
B.
1% of the tax due per month
C.
1.5% of the tax due per month
D.
2% of the tax due per month

Question 68

What is the current VAT rate in Nepal for the fiscal year 2022/23?

A.
10%
B.
13%
C.
18%
D.
22%

Practice another set Take a test on this chapter →

Question 1

Question 2

Foundation fundamentals

Bearing capacity and settlement

Open-channel flow

Hydrology

Determinate structures

Indeterminate structures

Diversion headworks

River training works

Water logging and drainage

Run-of-river headworks

Water conveyance structures

Machines and powerhouse

Road construction and maintenance

Project planning and scheduling

Project management

Project management

Engineering professional practice

Nepal Engineering Council Acts and Regulations

Nepal Engineering Council Acts and Regulations

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Question 22

Question 23

Question 24

Question 25

Question 26

Question 27

Question 28

Question 29

Question 30

Question 31

Question 32

Question 33

Question 34

Question 35

Question 36

Question 37

Question 38

Question 39

Question 40

Question 41

Question 42

Question 43

Question 44

Question 45

Question 46

Question 47

Question 48

Question 49

Question 50

Question 51

Question 52

Question 53

Question 54

Question 55

Question 56

Question 57

Question 58

Question 59

Question 60

Question 61