100+ Economics of Power Generation Objective Questions and Answers

In this article, we shared the economics of power generation objective questions and answers for electrical and electronics engineers.

Economics of Power Generation

Economics of Power Generation Objective Questions

The below list provides all the multiple-choice questions (MCQ) and online test quiz related to the economics of power generation.

Answers are available at the bottom of the article.

1. The load factor of the domestic load is usually

A)60 to 70%
B)50 to 60%
C)30 to 40%
D)10 to 15%

2. Which of the following source of power is least reliable?

A)Geothermal power
B)Wind power
C)Solar energy

3. Which of the following is not a method for estimating depreciation charges?

A)Sinking fund method
B)Halsey’s 50-50 formula
C)Diminishing value method
D)Straight-line method

4. For a high value of diversity factor, a power station of given installed capacity will be in a position to supply

A)more number of consumers
B)neither less number of consumers nor more number of consumers
C)either less number of consumers or more number of consumers
D)less number of consumers

5. Annual depreciation of the plant is proportional to the earning capacity of the plant vide

A)reducing balances depreciation
B)sinking fund depreciation
C)straight-line depreciation
D)none of these answers

6. The expected useful life of a hydroelectric power station is around

A)60 years
B)100 years
C)15 years
D)30 years

7. In a load curve the highest point represents

A)peak demand
B)average demand
C)none of these answers
D)diversified demand

8. ____ can generate power at unpredictable or uncontrolled times.

A)Wind power plant
B)Any of these answers
C)Solar power plant
D)Tidal power plant

9. Anything having some heating value can be used as fuel in case of

A)closed cycle gas turbines
B)open cycle gas turbines
C)diesel engines
D)petrol engines

10. Which of the following are not repayable after a stipulated period?

B)Fixed deposits
D)Cash certificates

11. Which of the following are not repayable after a stipulated period?

A)Fixed deposits
C)Cash certificates

12. Which of the following component, in a steam power plant needs maximum maintenance attention?

A)Water treatment plant
B)Steam turbine

13. Static capacitors are rated in terms of

C)none of these answers

14. For a diesel generating station the useful life is expected to be around

A)15 to 20 years
B)50 to 75 years
C)75 to 100 years
D)20 to 50 years

15. Ships are generally powered by

A)hydraulic turbines
B)none of these answers
C)diesel engines
D)steam accumulators
E)nuclear power plants

16. Load shedding is possible through which of the following?

A)Voltage reduction
B)Any of these answers
C)Switching of the loads
D)Frequency reduction

17. Which of the following is not a source of power?

B)Solar cell
C)Photovoltaic cell
D)Photoelectric cell

18. For a power plant which of the following constitutes running cost?

A)All of these answers
B)Cost of lubricants
C)Cost of wages
D)Cost of fuel

19. For a consumer the most economical power factor is generally

A)0.5 leading
B)0.5 lagging
C)0.95 leading
D)0.95 lagging

20. Annual operating expenditure of a power plant consists of

A)all of these answers
B)semi-fixed charges
C)running charges
D)fixed charges

21. A pilot exciter is provided on generators for which of the following reasons?

A)None of these answers
B)To excite the poles of main exciter
C)To provide requisite starting torque to generator
D)To provide requisite starting torque to main exciter

22. A load curve indicates

A)average kWh (kW) energy consumption during the period
B)average power used during the period
C)none of these answers
D)either average power used during the period or average kWh (kW) energy consumption during the period

23. The primary reason for the low power factor is supply system is due to installation of

A)induction motors
B)d.c. motors
C)synchronous motors
D)single phase motors

24. A synchronous condenser is virtually which of the following?

A)Over excited synchronous motor
B)None of these answers
C)Under excited synchronous motor
D)Induction motor
E)D.C. generator

25. ____ will offer the least load.

A)Hair dryer
C)Electric shaver
D)Vacuum cleaner

26. Annual depreciation as per straight line method, is calculated by

A)the capital cost minus the salvage value, is divided by the number of years of life
B)the capital cost divided by number of year of life
C)none of these answers
D)increasing a uniform sum of money per annum at a stipulated rate of interest

27. Generators for peak load plants are usually designed for maximum efficiency at

A)full load
B)50 to 75 percent full load
C)25 percent overload
D)25 to 50 percent full load

28. Low power factor is usually not due to

A)induction motors
B)arc lamps
C)incandescent lamp
D)fluorescent tubes

29. ____ power plant cannot have a single unit of 100 MW.

B)Any of these answers

30. Large capacity generators are invariably

A)forced air cooled
B)hydrogen cooled
C)natural air cooled
D)water cooled

31. Direct conversion of heat into electric power is possible through

A)thermionic converter
C)fuel cell
D)all of these answers

32. The area under the daily load curve divided by 24 hours gives

A)least load
B)total kWh generated
C)peak demand
D)average load

33. In ____ fuel transportation cost is least.

A)none of these answers
B)steam power stations
C)diesel generating plants
D)nuclear power plants

34. In India production and distribution of electrical energy is confined to

A)public sector
B)government sectors
C)joint sector
D)none of these answers
E)private sector

35. In which of the following power plants the maintenance cost is usually high?

A)Thermal power plants
B)Nuclear power plant
C)Hydro-electric power plants
D)Diesel engine power plants

36. During load shedding

A)system voltage is reduced
B)system frequency is reduced
C)some loads are switched off
D)system power factor is changed

37. Diversity factor has a direct effect on the

A)both fixed cost, of unit generated and running cost of unit generated
B)running cost of unit generated
C)neither fixed cost, of unit generated ​ nor running cost of unit generated
D)fixed cost, of unit generated

38. Which of the following is the disadvantage of static capacitors for power factor improvement?

A)Short service life
B)All of these answers
C)Cannot be repaired
D)Easily damaged by high voltage

39. In an interconnected system, the diversity factor of the whole system

A)none of these answers
D)remains unchanged

40. Which of the following is not a method for estimating depreciation charges?

A)Diminishing value method
B)Halsey’s 50-50 formula
C)Straight line method
D)Sinking fund method

41. Load factor of a power station is defined as

A)maximum demand/average load
B)average load/maximum demand
C)average load X maximum demand
D)(average load X maximum demand​)1/2

42. Submarines for underwater movement, are powered by which of the following?

A)Air motors
B)Steam accumulators
C)Diesel engines

43. In a distribution system, in order to improve power factor, synchronous capacitors are installed

A)either at the receiving end or at the sending end
B)at the receiving end
C)none of these answers
D)at the sending end

44. ___ offers the highest electric load.

A)Washing machine
B)Vacuum cleaner
D)Television set

45. Which of the following, in a thermal power plant, is not a fixed cost?

A)Insurance charges
B)Interest on capital
C)Fuel cost

46. ____ is the reserved generating capacity available for service under emergency conditions which is not kept in operation but in working order.

A)Hot reserve
B)Cold reserve
C)Firm power
D)Spinning reserve

47. Power generation cost reduces as

A)diversity factor decreases and load factor increases
B)diversity factor increases and load factor decreases
C)both diversity factor as well as load factor decrease
D)both diversity factor as well as load factor increase

48. Submarines for underwater movement, are powered by which of the following?

A)Diesel engines
B)Air motors
C)Steam accumulators

49. Load curve is useful in deciding the

A)the total installed capacity of the plant
B)all of these answers
C)operating schedule of generating units
D)sizes of generating units

50. Load curve of a power plant has always

A)zero slope
B)positive slope
C)negative slope
D)any combination of zero slope, positive slope and negative slope

51. The increased load during the summer months is due to

A)increased business activity
B)increased use of fans and air conditioners
C)increased water supply
D)none of these answers

52. Annual depreciation cost is calculated by

A)sinking fund method
B)both sinking fund method and straight line method
C)none of these answers
D)straight line method

53. With reference to a power station which of the following is not a fixed cost?

B)Fuel cost
C)Interest on capital
D)Insurance charges

54. A company can raise funds through

A)fixed deposits
D)any of these answers

55. Which plant can never have 100 percent load factor?

A)Hydro electric plant
B)Peak load plant
C)Nuclear power plant
D)Base load plant

56. The efficiency of a plant is of least concern when it is selected as

A)peak load plant
B)either peak load plant or casual run plant
C)casual run plant
D)base load plant

57. In a power plant if the maximum demand on the plant is equal to the plant capacity, then

A)load factor will be unity
B)plant reserve capacity will be zero
C)load factor will be nearly 60%
D)diversity factor will be unity

58. Maximum demand on a power plant is

A)both the greatest of all “short time interval averaged” demand during a period or instantaneous maximum value of kVA supplied during a period
B)instantaneous maximum value of kVA supplied during a period
C)the greatest of all “short time interval averaged” demand during a period
D)none of these answers

59. ____ is invariably used as base load plant.

A)Gas turbine plant
B)Nuclear power plant
C)Diesel engine plant
D)Pumped storage plant

60. For any type of consumer the ideal tariff is

A)block rate tariff
B)three part tariff
C)two part tariff
D)any of these answers

61. ____ power plant is expected to have the longest life.

C)Any of these answers

62. Which of the following is the essential requirement of a peak load plant?

A)It should produce high voltage
B)It should be small in size
C)It should be capable of starting quickly
D)It should run at high speed

63. Direct conversion of heat into electrical energy is possible through

A)fuel cells
B)MHD generators
C)none of these answers
D)solar cells

64. Maximum demand tariff is generally not applied to domestic consumers because

A)they consume less power
B)their maximum demand is low
C)none of these answers
D)their load factor is low

65. ___ industry has the least power consumption per tonne of product.

C)Vegetable oil
D)Caustic soda

66. Which of the following plants is almost inevitably used as base-load plant?

A)Pumped storage plant
B)Nuclear power plant
C)Gas turbine plant
D)Diesel engine plant

67. Salvage value of the plant is always

C)any of these answers

68. For which of the following power plants highly skilled engineers are required for running the plants?

A)Solar power plants
B)Gas turbine power plants
C)Nuclear power plants
D)Hydro-electric power plants

69. ___ is invariably used for peak load

A)None of these answers
B)Nuclear power plant
C)Pumped storage plant
D)Steam turbine plant

70. Which of the following place is not associated with nuclear power plants in India?


71. When the demand of consumers is not met by a power plant, it will resort to which of the following?

A)Efficient plant operation
B)Penalizing high load consumers by increasing the charges for electricity
C)Load shedding
D)Power factor improvement at the generators

72. Which of the following may not be the effect of the low plant operating power factor?

A)Reduced voltage level
B)Overloaded transformers
C)Improved illumination from the lighting
D)Overloaded cables

73. Generating capacity connected to the bus bars and ready to take load when switched on is known as ____

A)firm power
B)hot reserve
C)spinning reserve
D)cold reserve

74. When a plant resorts to load shedding it can be concluded that

A)peak demand is more than the installed capacity
B)the diversity factor is zero
C)daily load factor is unity
D)the plant is under repairs

75. An induction motor has a relatively high power factor at

A)near full load
B)none of these answers
C)no load
D)rated r.p.m.
E)20 percent load

76. Air will not be the working substance in which of the following?

A)Petrol engine
B)Closed cycle gas turbine
C)Open cycle gas turbine
D)Diesel engine

77. Annual depreciation cost is calculated by

A)sinking fund method
B)both sinking fund method and straight-line method
C)none of these answers
D)straight line method

78. For the same maximum demand, if the load factor is decreased, the cost of generation will

A)none of these answers
C)remain unchanged

79. Which of the following is an advantage of static capacitors for power factor improvement?

A)Little maintenance cost
B)All of these answers
C)Low losses
D)Ease in installation

80. Which of the following devices may be used to provide protection against lightning overvoltages?

A)All of these answers
B)Rod gaps
C)Horn gaps
D)Surge absorbers

81. ____ public sector undertaking is associated with erection and sometimes running of thermal power plants


82. In two part tariff, variation in load factor will affect

A)either fixed charges or operating or running charges
B)fixed charges
C)operating or running charges
D)both fixed charges and operating or running charges

83. The knowledge of diversity factor helps in determining

A)kWh generated
B)none of these answers
C)average load
D)peak load
E)plant capacity

84. Base load plants usually have ____ capital cost,____ operating cost and ____ load factor.

A)low, high, low
B)high, high, high
C)high, low, high
D)low, low, low

85. The area under a load curve gives

A)maximum demand
B)energy consumed
C)average demand
D)none of these answers

86. Which of the following equipment provides fluctuating load?

A)Lathe machine
B)All of these answers
C)Welding transformer
D)Exhaust fan

87. For cooling of large size generators hydrogen is used because

A)all of these answers
B)it offers reduced fire risk
C)it is light
D)it has high thermal conductivity

88. An alternator coupled to a ____ runs at slow speed, as compared to others

A)gas turbine
B)hydraulic turbine
C)steam turbine
D)diesel engine

89. If the tariff for electrical energy charges provides incentive by way of reduced charges for higher consumption, then it can be concluded that

A)power is generated through a hydroelectric plant
B)load factor is unity
C)plant has sufficient reserve capacity
D)station has more than two generators

90. ____ will be least affected due to charge in supply voltage frequency.

A)Room heater
B)Mixer grinder
C)Electric clock
D)Ceiling fan

91. A low utilization factor for a plant indicates that

A)plant is used for stand by purpose only
B)plant is under maintenance
C)plant is used for base load only
D)plant is used for peak load as well as base load

92. In Hopknison demand rate or two part tariff the demand rate or fixed charges are

A)dependent upon the energy consumed
B)dependent upon the maximum demand of the consumer
C)both dependent upon the energy consumed and dependent upon the maximum demand of the consumer
D)neither dependent upon the energy consumed nor dependent upon the maximum demand of the consumer

93. Which lightning stroke is most dangerous?

A)Direct stroke on tower top
B)Direct stroke on ground wire
C)Indirect stroke on conductor
D)Direct stroke on line conductor

94. Demand factor is defined as

A)maximum demand/connected load
B)connected load/maximum demand
C)average load/maximum load
D)average load X maximum load

95. Which of the following is the disadvantage due to low power factor ?

A)Poor voltage regulation
B)All of these answers
C)High cost of equipment for a given load
D)Increased transmission losses

96. Approximate estimation of power demand can be made by

A)economic parameters
B)load survey method
C)statistical methods
D)mathematical method
E)all of these answers

97. The least share of power is provided in India, by which of the following power plants?

A)Thermal power plants
B)Diesel power plants
C)Hydro-electric power plants
D)Nuclear power plants

98. Which of the following generating station has minimum running cost ?


99. A 130 MW generator is usually ____ cooled


100. Efficiency is the secondary consideration in which of the following plants?

A)none of these answers
B)Base load plants
C)Peak load plants
D)Both Base load plants and Peak load plants

101. The connected load of a domestic consumer is around

A)40 kW
B)5 kW
C)80 kW
D)120 kW

102. Load shedding is done to

A)reduce peak demand
B)repair the machine
C)improve power factor
D)run the equipment efficiently

103. Following power plant has instant starting

A)none of these answers
B)diesel power plant
C)hydropower plant
D)both hydro power plant and diesel power plant
E)nuclear power plant

104. Depreciation charges are high in case of

A)diesel plant
B)none of these answers
C)hydroelectric plant
D)thermal plant

105. The depreciation charges in diminishing value method are

A)same in all years
B)heavy in later years
C)light in early years
D)heavy in early years

106. Which of the following is not an operating cost?

A)Salaries of operating staff
B)Fuel cost
C)Maintenance cost
D)Salaries of high officials

107. Which of the following is not necessarily an advantage of interconnecting various power stations ?

A)Economy in operation of plants
B)Improved frequency of power supplied
C)Increased reliability
D)Reduction in total installed capacity

108. A nuclear power plant is invariably used as a

A)base load plant
B)peak load plant
C)stand-by plant
D)any of these answers
E)spinning reserve plant

109. Which of the following is the disadvantage of a synchronous condenser ?

A)Continuous losses in motor
B)High maintenance cost
C)All of these answers

110. For the same cylinder dimensions and speed, which of the following engine will produce least power ?

A)Diesel engine
B)All of these answers
C)Supercharged engine
D)Petrol engine

111. A power transformer is usually rated in


112. Major share of power produced in India is through

A)hydroelectric power plants
B)nuclear power plants
C)diesel power plants
D)thermal power plants

113. Maximum demand tariff is generally not applied to domestic consumers because

A)their load factor is low
B)none of these answers
C)they consume less power
D)their maximum demand is low

114. Most efficient plants are normally used as

A)none of these answers
B)base load plants
C)either peak load plants or base load plants
D)peak load plants

115. In case of ____ fuel transportation is the major problem.

A)diesel power plants
B)hydro-electric power plants
C)thermal power plants
D)nuclear power plants

116. Diversity factor is always

A)more than fifty
B)less than unity
C)more than unity
D)equal to unity

117. By the use of which of the following power factor can be improved?

A)Synchronous compensators
B)Static capacitors
C)Phase advancers
D)Any of these answers

118. The effect of electric shock on human body depends on which of the following

A)duration of contact
D)all of these answers

119. Which of the following power plants need the least period for installation ?

A)Diesel power plant
B)Hydro-electric power plant
C)Thermal power plant
D)Nuclear power plant

120. An over excited synchronous motor on no-load is known as

B)synchronous condenser
C)induction motor

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100+ Economics of Power Generation Objective Questions and Answers

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