Engineering Economics (Practice Test MCQs)

50 Score: 0 Attempted: 0/50

1. Quantity surveying mainly deals with:
(A) Soil testing and analysis
(B) Estimating, costing, and cost control of construction projects
(C) Structural design of buildings
(D) Environmental assessment

2. The primary purpose of estimation is to:
(A) Finalize architectural drawings
(B) Determine the approximate cost and quantities of a project
(C) Select construction materials
(D) Conduct load testing

3. Which type of estimate is prepared at the initial planning stage?
(A) Detailed estimate
(B) Plinth area estimate
(C) Revised estimate
(D) Supplementary estimate

4. Detailed estimate is based on:
(A) Lump sum cost only
(B) Measurement of every item of work
(C) Contractor’s profit margin only
(D) Basic design concepts

5. Which document lists item descriptions, quantities, rates, and total costs?
(A) Bar bending schedule
(B) Abstract of cost
(C) Work breakdown structure
(D) Specifications

6. Contingency charges in an estimate are provided for:
(A) Planned variations
(B) Unforeseen expenses
(C) Contractor profit
(D) Supervision staff salaries

7. The unit of measurement for brickwork is:
(A) Square meter
(B) Cubic meter
(C) Running meter
(D) Ton

8. Which type of estimate is prepared when there are major changes in design?
(A) Supplementary estimate
(B) Revised estimate
(C) Preliminary estimate
(D) Annual repair estimate

9. The term “prime cost” refers to:
(A) Contractor’s profit
(B) Direct cost of materials and labor
(C) Total project cost including overheads
(D) Government taxes

10. Work charged establishment includes:
(A) Permanent staff salaries
(B) Temporary staff employed for a specific project
(C) Taxes and levies
(D) Contractor’s fees

11. The deduction in brickwork is NOT made for:
(A) Openings up to 0.1 m²
(B) Chases of small sections
(C) Circular openings up to 0.05 m²
(D) Doors larger than 1 m²

12. Which type of contract includes a fixed price for all work?
(A) Cost-plus contract
(B) Lump sum contract
(C) Item rate contract
(D) Percentage rate contract

13. Analysis of rates includes:
(A) Only material cost
(B) Materials, labor, tools, overheads, and profit
(C) Only contractor profit
(D) Only labor wages

14. Salvage value refers to:
(A) Cost of maintenance
(B) Scrap value at the end of useful life
(C) Residual value after repairs
(D) Initial cost of project

15. The lead statement in estimation provides:
(A) Quantity of materials used
(B) Distance between source of material and site
(C) Labor schedule
(D) Contractor’s profit margin

16. The unit of measurement for plastering is:
(A) m³
(B) m²
(C) kg
(D) Running meter

17. Overhead costs in estimation include:
(A) Site staff salaries, office rent, electricity
(B) Only raw material costs
(C) Contractor’s profit
(D) Tax deductions only

18. Scrap value is:
(A) Always equal to salvage value
(B) The selling price of materials after demolition
(C) Cost of permanent equipment
(D) Cost of transportation

19. Which estimate is prepared to determine the financial feasibility of a project?
(A) Detailed estimate
(B) Preliminary estimate
(C) Supplementary estimate
(D) Plinth area estimate

20. Sinking fund is used for:
(A) Payment of contractor advances
(B) Future replacement or reconstruction of structure
(C) Day-to-day expenses
(D) Salary increments

21. Which is NOT a method of approximate estimating?
(A) Plinth area method
(B) Cubic content method
(C) Unit rate method
(D) Critical path method

22. The quantity of cement in 1:6 brick masonry per m³ is approximately:
(A) 1 bag
(B) 2 bags
(C) 3 bags
(D) 5 bags

23. Which item is measured in running meters?
(A) Flooring
(B) Fencing
(C) Plastering
(D) Earthwork

24. BOQ stands for:
(A) Bill of Quality
(B) Bill of Quantity
(C) Basis of Quantity
(D) Budget of Quantity

25. The purpose of a bar bending schedule (BBS) is:
(A) Calculate cement bags
(B) Determine steel cutting lengths and weights
(C) Estimate excavation volume
(D) Plan site layout

26. Which estimate is prepared after the completion of work?
(A) Revised estimate
(B) Final estimate
(C) Preliminary estimate
(D) Supplementary estimate

27. Depreciation is:
(A) Increase in asset value over time
(B) Reduction in asset value due to wear and tear
(C) Contractor profit margin
(D) Salvage value plus maintenance cost

28. The typical percentage of contingency charges in a government project is:
(A) 1–2%
(B) 2–3%
(C) 3–5%
(D) 10–15%

29. Earthwork in road embankment is measured in:
(A) Cubic meters
(B) Square meters
(C) Running meters
(D) Tonnes

30. The schedule of rates (SOR) is prepared by:
(A) Contractor
(B) Public Works Department (PWD) or relevant authority
(C) Structural engineer
(D) Architect

31. Which factor does NOT affect the rate analysis?
(A) Location of work
(B) Material availability
(C) Seasonal variation
(D) Contractor’s nationality

32. The life of a building is assumed to be:
(A) 10–20 years
(B) 30–50 years
(C) 60–80 years
(D) 100 years fixed

33. The unit of measurement for painting is:
(A) Cubic meter
(B) Square meter
(C) Running meter
(D) Lump sum

34. Which is NOT included in preliminary estimate?
(A) Administrative expenses
(B) Contingency charges
(C) Work-charged establishment
(D) Detailed item measurements

35. An estimate including new work in addition to original is called:
(A) Supplementary estimate
(B) Abstract estimate
(C) Administrative estimate
(D) Plinth area estimate

36. The thumb rule for cement in 1 m³ of RCC (1:2:4) is:
(A) 2.5 bags
(B) 4 bags
(C) 6.25 bags
(D) 8 bags

37. Contractor’s profit is generally taken as:
(A) 1–2%
(B) 5–8%
(C) 8–10%
(D) 10–15%

38. Which type of cost includes depreciation, interest, and insurance?
(A) Direct cost
(B) Overhead cost
(C) Contingency
(D) Prime cost

39. The plinth area is measured at:
(A) Ground level excluding walls
(B) Floor area plus wall thickness
(C) Carpet area only
(D) Basement only

40. Which is NOT a type of estimate used in civil works?
(A) Rough cost estimate
(B) Cubic rate estimate
(C) Capital cost estimate
(D) Magnetic estimate

41. Which factor is used for converting dry volume to wet volume of concrete?
(A) 1.10
(B) 1.33
(C) 1.54
(D) 1.75

42. In road work, prime coat is estimated in:
(A) Cubic meters
(B) Liters per m²
(C) Kilograms
(D) Running meters

43. What is the purpose of a tender?
(A) Finalize architectural plans
(B) Invite contractors to quote prices
(C) Measure site layout
(D) Conduct soil investigation

44. Star rates are used when:
(A) Items are new or not in the schedule of rates
(B) Contractor demands extra payment
(C) Tender is rejected
(D) BOQ is incomplete

45. The unit of measurement for steel reinforcement is:
(A) Running meter
(B) Kilogram or tonne
(C) Square meter
(D) Lump sum

46. The purpose of a preliminary estimate is:
(A) Sanction of funds and project feasibility
(B) Final settlement of contractor claims
(C) Calculation of depreciation
(D) Preparation of as-built drawings

47. A daywork schedule is related to:
(A) Regular contract work
(B) Work done on time and material basis
(C) Lump sum contract
(D) Yearly maintenance

48. Which is NOT considered in depreciation calculation?
(A) Initial cost
(B) Salvage value
(C) Scrap cost
(D) Cost index

49. Measurement book (MB) is used for:
(A) Recording design drawings
(B) Recording measurements of work done
(C) Estimating salvage value
(D) Preparing schedule of rates

50. Which is an indirect cost in construction?
(A) Concrete
(B) Labor wages
(C) Site office expenses
(D) Bricks

Engineering Economics (Practice Test MCQs)

1. Basic/Foundation Subjects

2. Core Civil Engineering Subjects

3. Advanced/Applied Subjects

4. Management and Planning

5. Environmental & Sustainable Development