Economics of Power Generation MCQ

The study of different methods and techniques related to generation, utilization, and demand of electric power so as to make it affordable for the user as well as equally beneficial for generation companies is known as Economics of Power Generation.

Power Generation Economics MCQ

Which of the following method is used to determine depreciation:

  1. Diminishing value method
  2. Straight-line method
  3. Sinking fund method
  4. All of these

Correct answer: 4. All of these


A power station having maximum demand of 30,000 kW and an annual load factor of 0.35 will generate how many units per annum:

  1. 1050 kWh
  2. 50,900 kWh
  3. 9198000 kWh
  4. 40543777 kWh

Correct answer: 3. 9198000 kWh


The original cost of a transformer having a useful life of 50 years is $49,988. Its scrap value is $1850. The annual depreciation charges as per straight line method are:

  1. 265.98
  2. 488.4
  3. 962.76
  4. 1029

Correct answer: 3. 962.76


High load factor:

  1. Reduced cost of each unit
  2. Reduces variations in load demand
  3. Reduces the use of regulation devices
  4. All of these

Correct answer: 4. All of these

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