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Wednesday 24 September 2014

UGC NET JUNE 2014 SOLVED ECONOMICS PAPER III

                    LEAD BY KNOWLEDGE  COACHING CENTRE AND TUTORIAL
                           UGC NET JUNE 2014 SOLVED ECONOMICS PAPER III
01. Which of the following are the basic assumptions of cardinal utility
      analysis ?
    I. Utility is a measurable and quantifiable entity.
    II. Marginal utility of money changes with changes in real income.
    III. Utilities derived from various goods are inter-dependent.
    IV. The use of introspective method in judging the
          behaviour of marginal utility.
    Codes :
    (A) I and II are correct.
    (B) I and III are correct.
    (C) I and IV are correct.
    (D) I, III and IV are correct.
02. Engel Curve denotes
    (A) various amounts of a good which a consumer would be
          willing to purchase at various price levels.
    (B) various amounts of a good which a consumer would be
          willing to purchase at various income levels.

    (C) various amounts of a good purchased when the price of its
          substitutes tend to rise.
    (D) the relationship between income effect and substitution effect.
03. A producer is said to be operating with excess capacity
    (A) when he produces an output greater than that given by the
          minimum Average Total Cost
    (B) when he produces an output greater than at given by the
          maximum Average Total Cost
    (C) When he produces an output equal to that given by the
           minimum Average Total Cost
    (D) When he produces an output smaller than that given by the
          Minimum Average Total Cost

04. Assertion (A) : Harvey Leibenstein asserted that marginal
                             conditions required for economic efficiency are not
                             usually satisfied in practice.
      Reason (R) : People are not fully motivated towards
                          maximization or minimization.
    Codes :
    (A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
    (B) (A) is correct, but (R) is not correct.
    (C) Both (A) and (R) are correct, but (R) is incorrect explanation
          of (A).
    (D) (R) is correct, but (A) is incorrect.
05. A graphical illustration used to explain efficiency conditions and
     demonstrates how the allocations of some goods and resources can be
     improved through exchange is called
    (A) production possibility curves
    (B) social indifference curves
    (C) Edgeworth box diagram
    (D) Phillips curve
06. Match the following :
           List – I                                   List - II
    a. A double Kaldor-Hicks
       Test                                        1. A. Bergson
    b. Compensation Principle          2. K.J. Arrow
    c. Social Welfare function           3. T. Scitovsky
    d. Impossibility theorem             4. Kaldor- Hicks
    Codes :
           a b c d
    (A) 4 1 3 2
    (B) 3 4 1 2
    (C) 3 4 2 1
    (D) 4 3 2 1
07. The oligopoly model in which the businessman assumes that his
      competitors output are fixed and simultaneously decide how much to
      produce is
    (A) Cournot oligopoly model
    (B) Stackelberg oligopoly model
    (C) Chamberlin’s oligopoly model
    (D) Bertrand oligopoly model
08. According to Game Theory, if increased advertising, raises costs
      more than revenues and the profits of both firms decline, we have a
    (A) Positive-sum game
    (B) Non zero-sum game
    (C) Zero-sum game
    (D) Negative-sum game
09. Arrows impossibility theorem implies
    (A) Any social decision rule should not violates the requirements of
          rational choice.
    (B) Any social decision rule must violate atleast one of the
          requirements of rational choice.

    (C) Any social decision rule must violate all the requirements of
          rational choice.
    (D) It is impossible to violate social decision rules.
10. ‘Bandwagon effect’ is found in
    (A) Relative Income hypothesis
    (B) Permanent Income hypothesis
    (C) Life cycle Hypothesis
    (D) Absolute Income hypothesis
12. Complete the statements given in List – I with there given in List – II :
               List – I                            List – II
    a. Instantaneous
        adjustment of
        income with
        investment
       spending
       occurs in                          1. MPC is smaller
    b. Consumption
        lags income by
        one period in                   2. increase in investment
                                                  expenditure is once-forall
    c. Value of
        investment
        multiplier is
        zero when                      3. state multiplier
    d. Major portion
       of multiplier is
       realized in
       fewer periods when        4. dynamic multiplier
    Codes :
          a b c d
    (A) 3 4 1 2
    (B) 3 4 2 1
    (C) 4 3 1 2
    (D) 2 3 1 4
13. Assertion (A) : The individual speculative demand for money
                              is a discontinuous one.
      Reason (R) : Because the aggregate speculative demand for money
                          function is smooth downward sloping with liquidity trap at
                          extremely low interest rates.
    Codes :
    (A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
    (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
    (C) (A) is correct, but (R) is incorrect.
    (D) (A) is incorrect, but (R) is correct.
14. Transaction Cost is also called
    (A) Shoe Leather Cost
    (B) Menu Cost
    (C) Opportunity Cost of holding cash
    (D) All of the above
15. Given the consumption function, C = 0.8Y, and the investment function
       I = 102 – 0.2i, then the IS-curve is
    (A) Y = 500 – 10i               (B) Y = 450 – i
    (C) Y = 510 – i                   (D) Y = 505 – 2i
16. Match the premise given in List – I with that in List – II :
                List – I                                          List – II
    a. Price expectations are static            1. Okun’s law
    b. Price expectations are adaptive       2. Phillips Curve
    c. People do not make systematic
       errors                                              3. Natural Rate of unemployment
                                                                  hypothesis
    d. Deviations of output from its
        natural rate is inversely related
        to the deviation of unemployment
        rate from its natural level                  4. Rational expectations hypothesis
    Codes :
          a b c d
    (A) 2 3 4 1
    (B) 4 3 2 1
    (C) 1 3 4 2
    (D) 4 2 1 3

18. When the aggregate supply schedule is positively sloped, continuous
      increases in the nominal money supply, ceteris parilus, result in
    (A) No change in the price level and proportional increases in
          real output.
    (B) No change in real output and proportional increases in the price level.
    (C) An increase in the price level and real output.
    (D) An increase in the price level and a decrease in real output.
19. “Golden Age” as per Mrs. Joan Robinson is (where ΔN/N
        is growth rate of population and ΔK/K is growth rate of capital)
    (A) ΔN/N=ΔK/K
    (B)ΔN/N>ΔK/K
    (C)ΔN/N<ΔK/K
    (D) None of the above
20. A technical change is neutral if MPK/ MPL
      remains unchanged at constant K/L
      ratio :
    (A) Harrod             (B) Hicks
    (C) Solow              (D) Kaldor
21. Concept of disembodied technical change is associated with
    I. Abramovitz      II. Kaldor
    III. Kendrick      IV. Solow
    (A) I and II                   (B) III and IV
    (C) I, III and IV            (D) II, III and IV
22. Joan Robinson’s growth model deals with
    I. Desired growth rate
    II. Possible growth rate
    III. Natural growth rate
    IV. Warranted growth rate
    Codes :
     (A) I and III           (B) II and IV
     (C) I and II            (D) III and IV
23. Assertion (A) : To Marx, it is surplus labour that lead to capital accumulation.
      Reason (R) : The difference between actual labour and subsistence
                           labour that a labourer puts in for which he receives nothing
                           is surplus labour.
    Codes :
    (A) (A) is correct, but (R) is not the correct reason for (A).
    (B) (A) is correct and (R) is incorrect.
    (C) Both (A) and (R) are correct.
    (D) Both (A) and (R) are incorrect.
24. Arrange the “Structural Development Processes” in a sequential order :
    I. Resource Allocation Processes
    II. Accumulation Process
    III. Distributional Processes
    IV. Demographic Processes
    Codes :
    (A) I, IV, II, III         (B) II, I, IV, III
    (C) III, II, I, IV         (D) IV, III, I, II
25. Match the items in List – I with List – II :
                    List – I                                    List – II
    a. MPL is zero in overpopulated
        economies                                        1. Gunnar Myrdal
    b. Two gap model                                 2. J.E. Mead
    c. Critical growth rate                           3. Arthur Lewis
    d. Backwash effects                             4. Hollis Chenery & others
    Codes :
          a b c d
    (A) 1 3 4 2
    (B) 3 4 2 1
    (C) 2 1 3 4
    (D) 4 2 1 3
26. Match the items in List – I with List – II :
                    List – I                                         List – II
    a. Learning by doing                                 1. Kaldor
    b. Biased Technical Progress                    2. Karl Sax
    c. Co-efficient of sensitivity of
        income distribution                               3. Kenneth J. Arrow
    d. Theory of Demographic
        Transition : Four stages of
        Population growth                                4. Joan Robinson
    Codes :
          a b c d
    (A) 3 4 1 2
    (B) 1 3 2 4
    (C) 2 1 4 3
    (D) 4 2 3 1
27. Assertion (A) : Solow model is a major improvement over
                              Harrod-Domar Model.
      Reason (R) : Solow built a model of long run growth without the
                          assumption of fixed proportion in production.
    Codes :
    (A) (A) is correct, but (R) is not the correct reason of (A).
    (B) (A) is not correct, but (R) is correct.
    (C) Both (A) and (R) are correct.
    (D) Both (A) and (R) are not correct.
28. The concentrations effect explained in Peacock-Wiseman hypothesis
      implies
    (A) public expenditure does not increase in smooth and continuous manner
    (B) public expenditure increases the necessity of increased revenue
    (C) the Central Government’s economic activity to grow
          faster than that of subnational Governments

    (D) absolute level of public expenditure increases
29. A tax imposed upon monopoly profits
    (A) can be shifted forward
    (B) can be shifted backward
    (C) can be shifted both forward and backward
    (D) cannot be shifted
30. The plan expenditure on Revenue Account of the Union Government
      includes
    I. Economic Services
    II. Social and community services
    III. Grants-in-aid to States and Union Territories
    IV. Loans and Advances to finance public enterprises
    Codes :
    (A) I and II are correct.
    (B) I, II and III are correct.
    (C) I, II and IV are correct.
    (D) I, II, III and IV are correct.
31. Debt obligations of Government of India (Government liabilities)
    I. State Provident Funds
    II. Small Savings
    III. Reserve Funds and Deposits
    IV. Consolidated Fund of India
    Codes :
    (A) II and III are correct.
    (B) I, II and III are correct.
    (C) II, III and IV are correct.
    (D) I, III and IV are correct.
32. Identify the chronology of the following Committees on tax reforms
      in India :
    I. Committee on Taxation of Agricultural Income and Wealth
    II. Kaldor Proposal for Tax Reform in India
    III. Taskforces on Direct and Indirect Taxes
    IV. Direct Taxes Administration Enquiry Committee
    Codes :
    (A) II, I, IV, III            (B) II, IV, I, III
    (C) II, III, I, IV           (D) I, III, IV, II
33. Which of the following are the role of Finance Commissions in India ?
    I. To make recommendations on the distribution of tax proceeds
        between Centre and States.
    II. To make Recommendations on levying, removing or
          restructuring of taxes.
    III. To recommend Grants-in-aid under Article 275 of the
          Constitution
    IV. To recommend plan and other grants under Article 282 of the
         Constitution
    Codes :
    (A) I and II are correct.
    (B) I and III are correct.
    (C) I, III and IV are correct.
    (D) All are correct.
34. Under a managed floating exchange rate system, the nation’s monetary
      authorities intervene in foreign exchange markets to
    (A) smooth out short-run and longrun fluctuations in exchange rates
    (B) keep exchange rates fixed among a group of nations
    (C) smooth out short-run fluctuations in exchange rates
    (D) keep exchange rates flexible
35. Euro currency market is a part of a larger global market known as
      Eurodollar market.
    (A) Above statement is correct.
    (B) Above statement is not correct.
    (C) Above statement is partially correct.
    (D) Above statement is partially incorrect.
36. Match the following :
                       List – I                                       List – II
    a. WTO                                            1. Provide finance to correct
                                                                disequilibrium in balance of
                                                                payments.
    b. IMF                                              2. Generally forbids
                                                                 the use of quantitative
                                                                 restrictions in trade.
    c. SAARC                                         3. Sanction of soft loans
    d. IDA                                               4. Promotes trade among South
                                                                  Asian Countries
    Codes :
          a b c d
    (A) 1 2 3 4
    (B) 2 3 4 1
    (C) 2 1 4 3
    (D) 3 2 4 1
37. A sudden shift from import tariffs to free trade may induce short term
      unemployment in
    (A) import competing industries
    (B) industries that are only exporters
    (C) industries that sell domestically as well as export
    (D) industries that neither import nor export
38. The immediate cause for the collapse of the Bretton woods system was
    (A) the expectation that the U.S.A. would soon be forced to
         devalue the dollar
    (B) the massive flight of liquid capital from the U.S.A.
    (C) the attempt by three small European Central Banks to
          convert part of their dollar holding into gold at the Federal
          Reserve Bank.
    (D) All of the above
39. A feasible effect of international trade is that
    (A) a monopoly in the home market becomes an oligopoly in the
          world market

    (B) an oligopoly in the home market becomes a monopoly in
          the world market
    (C) a purely competitive firm in the home market becomes an
          oligopolist
    (D) a purely competitive firm in the home market becomes a
          monopolist
40. The European Union has achieved all of the following, except
    (A) adopted a common fiscal policy for member nations
    (B) established a common system of agricultural price supports
    (C) disbanded all tariffs between its member countries
    (D) levied common tariffs on products imported from nonmembers
41. A Foreign Trade Zone (FTZ) is
    (A) a regional area within which trade with foreign nations is allowed
    (B) a free trade agreement among several nations
    (C) designed to promote exports by deferring import duties on
          intermediate inputs and waving such duties if the final product
          is re-exported rather than sold domestically

    (D) designed to limit exports of manufactured goods by placing
          import taxes on goods made within the zone
42. The formula that shows the correct relationship between
    I. The supply of high powered money (H)
    II. The currency (C)
    III. The money supply (M)
    IV. Required Reserves (RR)
    V. Excess Reserves (ER)
    VI. Demand deposits (D), is
    (A)M/H = D + C/C + RR + ER
    (B)H/M = D + C/C + RR + ER
    (C)M/D + C = C + RR + ER/H
    (D)H/M = C + RR + ER/D
43. Which of the following will act as the ‘lender of intermediate resort’ ?
    (A) RBI
    (B) NABARD
    (C) SBI
    (D) None of the above
44. According to Gurley and shaw, the various substitutes of currency and
      commercial bank demand deposits should be assigned different weights
      according to
    (A) their degree of replacement
    (B) their degree of substitutability
    (C) their share in the money market
    (D) their share in money supply
45. Assertion (A) : Primary financial markets deals in new financial claims.
      Reason (R) : It mobilises savings and supplies new capital to the business units.
    Codes :
    (A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
    (B) Both (A) and (R) are correct and (R) is not a correct explanation of (A).
    (C) (A) is true, but (R) is false.
    (D) (A) is false, but (R) is true.
46. Margin requirement specified under which instruments of monetary policy ?
    (A) Variable Reserve Requirement
    (B) Statutory Liquidity Requirement
    (C) Selective Credit Controls
    (D) Open Market Operations
47. As per Micro, Small and Medium Enterprise Development Act, 2006,
      Medium Enterprises are defined as those with investments :
    (A) < 25 lakhs
    (B) 25 lakhs to 5 crores
    (C) 5 crores to 10 crores
    (D) > 10 crores
48. Theory of Industrial Location is associated with the names of
    I. Losch
    II. Weber
    III. Christaller
    IV. Lerner
    Codes :
    (A) I & II
    (B) I only
    (C) I, II and III
    (D) I, II, III and IV
49. The Committees related to industrial licensing policy are
    I. Arjun Sengupta Committee
    II. D.G. Karve Committee
    III. Subimal Dutt Committee
    IV. R.K. Hazari Committee
    Codes :
    (A) I and II
    (B) II and III
    (C) III and IV
    (D) I, II and III
50. Which Industrial Policy Resolution gave the public sector a strategic role
       in the Indian Economy ?
    (A) 1948                 (B) 1956
    (C) 1977                 (D) 1980
51. Average industrial growth rate during Tenth Plan period was
    (A) 5.3%               (B) 8.8%
    (C) 10.2%             (D) 15.3%
52. Suggest the correct choices about the nature of the Environmental
      Economics :
    I. Nature of Market failure is similar to public goods under
       public finance.
    II. Willingness to pay can be negative.
    III. It deals for items which are not used.
    IV. It deals for items which are used.
    Codes :
    (A) I, II, III & IV
    (B) I, II & III
    (C) II, III & IV
    (D) II & IV
53. Which of the following methods would be used for estimation of price
     change of a house due to either pollution or good environment like
     existence of park and scenic beauty ?
    (A) Hedonic Method
    (B) Contingent Valuation Method
    (C) Externality Effects
    (D) All of the above
54. In a life table which of the following does not fit ?
    (A) There are eight columns in a life table.
    (B) It tells the age-specific mortality rate.
    (C) Age-specific birth rate can be derived from a life table.
    (D) Age-specific life expectancy can be estimated
55. Optimum theory of population tells about the relationship between
    (A) Population and food supply
    (B) Population and overall resources
    (C) Dependent population and working population
    (D) Present population and growth rate of population
56. What is meant by ‘population neutralism’ ?
    (A) Impact of population growth on economic growth is negligible.
    (B) Growth rate of population is hovering around stationary
          population.
    (C) Impact of population growth on food supply is neutral.
    (D) Due to population growth, change in age structure is
          almost neutral.
57. What is the essence of wage goods model explained by Professor P.R.
      Brahmananda in the Indian economy context ?
    (A) It tells about low wage rate in the agriculture.
    (B) It tells about low wage rate for labour in the economy.
    (C) It tells about shift of labour from agriculture to industry.
    (D) It tells about the impact of the shortage of food items on the
          wage rate and growth rate of the economy.

58. Match the highest crop production states given in List – I with List – II
      from the given code :
              List – I                                       List – II
             (States)                          (Highest crop production)
    a. West Bengal                       1. Total course cereals
    b. Uttar Pradesh                     2. Rice
    c. Maharashtra                       3. Potato
    d. Gujarat                              4. Groundnut
    Codes :
          a b c d
    (A) 2 3 1 4
    (B) 3 2 1 4
    (C) 4 2 3 1
    (D) 1 3 4 2
59. About minimum support price, find out the correct combinations :
    I. If market price is higher, farmers will sell to the government.
    II. It ensures minimum assured price for the produce of the farmers.
    III. It helps in food security mission.
    IV. This is highly rewarding to farmers because they earn huge
          profits on their produce.
    Codes :
    (A) I, II & IV                  (B) II, III & IV
    (C) II & III                      (D) II & IV
60. Which of the followings have been important in growth of rice and wheat
       output in India after initiating green revolution programme ?
     I. Changes in cropping pattern
     II. Improved yields
    III. Crop insurance
    IV. Increased area under cultivation
    Codes :
    (A) II, III & IV               (B) I, II & IV
    (C) I, II & III                  (D) I, III & IV
61. ‘Green agriculture’ involves
    (A) organic farming and emphasis on horticulture
    (B) avoiding pesticides, chemical fertilizers while focussing on
          horticulture and floriculture
    (C) integrated pest management, integrated nutrient supply and
          integrated natural resource management

    (D) emphasis on food crops, horticulture and floriculture
62. The average cost function is given as
     AC = 1/3χ 2 – 10 x + 9. The level of output at which average cost is equal
     to marginal cost is :
    (A) 18              (B) 12
    (C) 15              (D) 21
63. The demand and supply functions are given as : Pα = 30 – 5 x and
      Ps = 3 x– 10 respectively ( x = quantity). The consumer surplus is
     (A) 125               (B) – 62.5
     (C) 62.5              (D) –125
64. The linear programming problem specified as
    Max : Z = 3x 1 + 5x 2 + 10x 3
    Sub to: x 1 + x 2 + x 3 ≤ 100
               9x 1 + x 2 + 8x 3 ≤ 95
                x 1 + 8x 2 + 3x 3 ≤ 60
                2x 1 + 7x 2 + x 3 ≤ 150
    and x 1≥  0, x 2 < 0 and x 3 > 0 has
    (A) a feasible solution
    (B) an optimal solution
    (C) multiple solutions
    (D) no solutions
65. The estimated regression equation of a firm producing scooter tyres is :
       ln y = – 3.56 + 0.31 ln X1 – 0.05 ln X2 + 0.53 ln X3 + 0.37 ln X4,ü
      –R 2 = 0.89 (Y = output and X1 to X4 are factor inputs).
     Assuming that all the estimated parameters are statistically
     significant from zero, the firm has
    (A) constant returns to scale
    (B) decreasing returns to scale
    (C) increasing returns to scale
    (D) neutral returns to scale
66. The test statistic used to test the significance of the adjusted
     coefficient of multiple determination ( –R2) is :
    (A) t–test            (B) Z–test
    (C) χ 2 –test         (D) F–test
67. Given that the CES production function as :
     Y = A[αL–β + (1 –α ) K–β] – γ β
     Match List – I with List – II and select the answer from the codes
     given below :
                List – I                       List – II
    a. A                              1. Factor intensity
    b. α                               2. Elasticity of substitution
    c. β                               3. Factor homogeneity
    d. γ                               4. Efficiency parameter
    Codes :
           a b c d
    (A) 1 4 2 3
    (B) 2 4 1 3
    (C) 1 2 3 4
    (D) 1 4 3 2
68. The technique used to estimate the over-identified system of
      simultaneous equations is
    (A) ordinary least squares
    (B) maximum likelihood
    (C) limited information maximum likelihood
    (D) two stage least squares
69. Which of the following assumptions are required to show the consistency,
       unbiasedness and efficiency of the OLS estimates
    I. E (νt) = 0
    II. Var (νt) = s2
    III. cov (νt, νt – j) = 0 for all values of j ¹ 0
    IV. νt ~ N(0, σ2)
     Codes :
    (A) II and IV only.
    (B) I and III only.
    (C) I, II and III only.
    (D) All the above four
70. The sources of auto correlation among the following are :
    I. Omitted explanatory variables
    II. Interpolation in the statistical observation
    III. Mis-specification of the true random term ‘n’
    IV. Economic variables to move together over time
    Codes :
    (A) I and II only
    (B) I, II and III only
    (C) I, III and IV only
    (D) All of the above
71. Arrange the following sub-sectors of the services sector of the Indian
      economy in ascending order of their contributions to the GDP in recent
      years :
    I. Trade, hotels and restaurants
    II. Transport, storage and communication
    III. Financing, insurance, real estate and business services
    IV. Community, social and personal services
    Codes :
    (A) I, II, III, IV
    (B) II, IV, III, I
    (C) II, I, III, IV
    (D) I, III, IV, II
72. Which of the following can be linked with those providing method for
      estimating black money in India ?
    I. Kaldor’s approach
    II. NIPFP method
    III. O.P. Chopra’s method
    IV. Arjun Sengupta
    Codes :
    (A) I, II & III
    (B) II, III & IV
    (C) I, III & IV
    (D) I & II
73. What is the share of single lane/intermediate lane in the total
      length of National Highways ?
    (A) 12 percent              (B) 15 percent
    (C) 22 percent              (D) 29 percent
74. During which year, gross domestic savings of the public sector turned
      negative in the Indian economy ?
    I. 1990 – 91
    II. 1995 – 96
    III. 1999 – 2000
    IV. 2002 – 2003
    Codes :0
    (A) I and II             (B) II and ü III
    (C) III and IV         (D) I and IV
75. What has been the projected investment ratio for the infrastructure
      development for the Eleventh Five Year Plan of India ?
    (A) 5.43 percent
    (B) 6.53 percent
    (C) 7.60 percent
    (D) 9.34 percent

Monday 22 September 2014

UGC NET JUNE 2014 SOLVED ECONOMICS PAPER II

                       LEAD BY KNOWLEDGE COACHING CENTRE AND TUTORIAL
                           UGC NET JUNE 2014 SOLVED ECONOMICS PAPER II
01. Who distinguished between value in use and value in exchange and gave
      the famous example of diamonds and water ?
    (A) Adam Smith
    (B) David Ricardo
    (C) Alfred Marshall
    (D) Karl Marx
02. In an economy of two individuals A and B and two commodities X and
      Y, general equilibrium of production and exchange occurs when
    (A) MRTXY = PX/PY
    (B) MRSXY for A and B = PX/PY
    (C) MRS A XY = MRS B XY
    (D) MRTXY = MRS A XY = MRS B XY
03. When income effect becomes stronger than substitution effect, the
     labour supply curve will
    (A) Slope positively
    (B) Negatively sloped
    (C) Bend backward
    (D) Slope upwards
04. Assertion (A) : The concept of supply curve is meaningless for
      the monopolist.
      Reason (R) : Monopolists are price setters; it does not make reuse
      to ask what output they will produce at various prices.
    Codes :
    (A) Both (A) and (R) are correct and (R) is the correct
          explanation of (A).

    (B) (A) is correct, but (R) is not correct.
    (C) Both (A) and (R) are correct, but (R) is not the correct
          explanation of (A).
    (D) (R) is correct, but (A) is incorrect.
05. Predatory pricing policy is designed to
    (A) drive competitors out of business
    (B) maximise profits
    (C) encourage entrants into the market
    (D) attain least cost output
06. Match items in List – I with items in List – II and select the
     correct answer from the code given below :
              List – I                            List – II
    a. The Screening
        Hypothesis                      1. George A. Akerlof
    b. Job Market
        Signalling                         2. K.J. Arrow
    c. The problem
        of moral
        hazard in the
       case of
       medical insurance             3. M. Spencer
    d. The market
        for lemons                       4. Paul W. Miller and Paul A.
                                                   Volcker
    Codes :
          a b c d
    (A) 3 2 4 1
    (B) 2 3 4 1
    (C) 4 3 2 1
    (D) 2 4 3 1
07. An industry whose long run supply curve is horizontal is called
    (A) Constant cost industry
    (B) Increasing Cost Industry
    (C) Decreasing Cost Industry
    (D) Efficient Industry
08. The practice of charging each consumer the reservation price is
      called
    (A) Peak load pricing
    (B) Inter-temporal price discrimination
    (C) First degree price discrimination
    (D) Third degree price discrimination
09. Frictional unemployment is also known as
    (A) Disguised unemployment
    (B) Turnover unemployment
    (C) Cyclical unemployment
    (D) Structural unemployment
10. Arrange in ascending chronological order the following consumption
      hypotheses in which they appeared in the economics literature :
    (1) Absolute increase hypothesis
    (2) Permanent increase hypothesis
    (3) Life cycle hypothesis
    (4) Relative increase hypothesis
    Codes :
    (A) 1, 3, 4, 2             (B) 1, 2, 4, 3
    (C) 1, 4, 3, 2             (D) 1, 3, 2, 4
11. Assume a model of income determination of the following type :
    C = a + b · Yd
    Yd = Y – T
    T = T0 + t1 · Y
    I = –I
    G = –G
    Y = C + I + G
    Where C = Consumption expenditure; Y = income; Yd = disposable income;
     T = taxes; T0 = Tan, when Y = 0; t1 = marginal tax rate; I = investment
     expenditure; G = Government expenditure; and bar ‘–’ as the variable
     indicates that these autonomous variables. Then the
     tax multiples with respect to T0 is :
    (A) 1/1 – b + bt1
    (B) – b/1 – b + bt1
    (C) 1 – b/1 – b – bt1
    (D) 1/1 – b – bt1
12. Which of the following components of aggregate demand is selfterminating
      and self-financing ?
    (A) Investment expenditure
    (B) Durable consumption expenditure
    (C) Non-durable consumption expenditure
    (D) Government expenditure
13. Arrange all the four concepts of money supply M1, M2, M3 and M4 in
      the ascending order in terms of their liquidity :
    (A) M3, M2, M1 andü M4
    (B) M1, M2, M3 and M4
    (C) M4, M2, M3 and M1
    (D) M4, M3, M2 and M1
14. Who amongst the following economists imparted money demand
      of a portfolio theory approach ?
    (1) J.M. Keynes
    (2) Baumol
    (3) James Tobin
    (4) Milton Friedman
    Codes :
    (A) 1, 2              (B) 3, 4
    (C) 1, 2, 3          (D) 2, 3, 4
15. Which of the following is not a characteristic feature of the Phillips
       curve ?
    (A) The Price expectations are adaptive
    (B) The unemployment rate, when money wage stabilises, is 5½
          percent
    (C) The price expectations are static
    (D) there is a loop around Phillips curve
16. The crowding out effect is zero when
    (A) there is liquidity trap, or investment is perfectly interest
          inelastic

    (B) money demand is perfectly interest inelastic, or investment
          is perfectly interest elastic
    (C) IS curve is falling and LM curve is rising
    (D) None of the above
17. Meeting the needs of present generation without compromising the
      needs of future generation is
    (A) Economic Development
    (B) Social Development
    (C) Sustainable Development
    (D) Economic Growth
18. The full capacity growth rate in Harrod-Domar Model is also known as
    (A) Actual growth rate
    (B) Warranted growth rate
    (C) Natural growth rate
    (D) Expected growth rate
19. Inventors of HDI are
    I. Harris-Todaro
    II. Megnad Desai
    III. Robert Solow
    IV. Amartya Sen
    Codes :
    (A) I and II are correct.
    (B) I and III are correct.
    (C) III and IV are correct.
    (D) II and IV are correct.
20. Components of PQLI
    I. Morbidity
    II. Infant mortality
    III. Life expectancy at age one
    IV. Basic literacy at age 15
    Codes :
    (A) I, III and IV are correct.
    (B) III, II and IV are correct.
    (C) I, II and III are correct.
    (D) IV, I and II are correct.
21. Assertion (A) : All historical events are the results of continuous
                             economic struggle between different classes and groups in
                             society.
     Reason (R) : The main cause of this struggle is the conflict between
                         the ‘mode of production’ and the ‘relations of production’.
    Codes :
    (A) (A) is correct, but (R) is wrong.
    (B) (A) is wrong, but (R) is correct.
    (C) Both (A) and (R) are wrong.
    (D) Both (A) and (R) are correct.
22. Match the items given in List – I with those in List – II :
                 List – I                                    List – II
    a. Swarm-likeclusters                 1. Brundtland Report
    b. Organic composition
       of capital                                2. Ragner Nurkse
    c. Sustainable Development       3. Schumpeter
    d. Vicious circle of poverty        4. Karl Marx
    Codes :
          a b c d
    (A) 4 2 3 1
    (B) 3 4 1 2
    (C) 1 3 2 4
    (D) 2 1 4 3
23. Match the items given in List – I with those in List – II :
         List – I                                 List - II
    a. Low level
       equilibrium trap              1. Simon Kuznets
    b. Inverted ‘V’ shaped
        income distribution
        hypothesis                     2. Nelson
    c. Endogenous growth
       theory                            3. Arthur Lewis
    d. Unlimited supplies
       of labour                        4. Robert Solow
    Codes :
          a b c d
    (A) 2 1 4 3
    (B) 3 2 1 4
    (C) 4 3 2 1
    (D) 1 4 3 2
24. Which of the following is correct about the ‘Hindu Growth Rate’ ?
    (A) This is about economic growth of the Hindu population.
    (B) Shows economic disparities among different social groups
          in India.
    (C) Reflects low growth performance of the Indian
          economy during 1950-80.

    (D) Hints at accelerated growth in India since 1980
25. Find out the incorrect statement about the success of economic
      reforms in India.
    (A) Benefits of demographic dividends
    (B) Increased share of the corporate sector in Gross Domestic Savings
    (C) Narrowing down of the current account deficit
    (D) Slow down of population growth rate
26. Single out the activity that is not included in the Industrial Production
      Index of India :
    (A) Manufacturing
    (B) Construction
    (C) Mining
    (D) Electricity
27. High growth of which industry provides a positive signal for
      industrial growth in future ?
    (A) Capital goods industries
    (B) Basic goods industries
    (C) Durable consumer goods industries
    (D) Intermediate goods industries
28. Identify the method not being used for unemployment estimation by the
      NSSO in India.
    (A) Current monthly status
    (B) Current daily status
    (C) Current weekly status
    (D) Usual principal and subsidiary status
29. The process of budget making after reevaluating every item of
      expenditure in every financial year is known as
    (A) Performance Budgeting
    (B) Fresh Budgeting
    (C) Debit Budgeting
    (D) Zero Based Budgeting
30. Rank the states in terms of ascending Human Development Index
      (HDI) as per India Human Development Report 2011 :
    I. Bihar
    II. Gujarat
    III. Odisha
    IV. Tamil Nadu
    Codes :
    (A) I, II, III, IV            (B) III, I, II, IV
    (C) I, III, IV, II            (D) III, II, I, IV
31. A difference in relative commodity prices between two nations can be
      based upon a difference in
    (A) factor endowment
    (B) technology
    (C) tastes
    (D) All of the above
32. Which type of trade is not explained by the Heckscher-Ohlin model ?
    (A) Trade based on economies of scale
    (B) Intra industry trade
    (C) Trade based on imitation gaps and product cycles
    (D) All of the above
33. An example of a Euro currency is
    (A) a dollar deposit outside the U.S.
    (B) a pound sterling deposit within UK
    (C) a mark deposit with Germany
    (D) All of the above
34. A deficit or surplus in the India’s balance of payments is measured by
      the net balance of
    (A) the current account
    (B) the capital account
    (C) allocation of SDRs and the statistical discrepancy
    (D) All of the above
35. If the demand of the domestic consumers is infinitely elastic and the
      supply of the foreign producer is perfectly inelastic, then the whole of
      the tariff will
    (A) be paid by the domestic consumers
    (B) be paid by the foreign producer
    (C) be equally shared by the domestic consumers and the
          foreign producer
    (D) yield neither revenue nor protection to either of them
36. The RBI made Indian Rupee fully convertible in current account
      transactions related to goods and services in the year
    (A) 1985            (B) 2002
    (C) 1994            (D) 2011
37. According to the monetary approach, a revaluation of a nation’s currency
    (A) increases the nation’s demand for money
    (B) increases the nation’s supply of money
    (C) reduces the nation’s demand for money
    (D) reduces the nation’s supply of money
38. Arrange the following in chronological order :
    I. Sarkar Award
    II. Niemeyer Award
    III. Deshmukh Award
    IV. Meston Award
   Codes :
    (A) II, IV, III, I             (B) IV, III, II, I
    (C) III, II, IV, I             (D) IV, II, I, III
39. In which of the following, Zero Based Budgeting is difficult to
      introduce ?
    I. Establishment charges
    II. Public works
    III. Irrigation Projects
    IV. Federal fiscal transfers
    Codes :
    (A) I, III and IV are correct.
    (B) II, III and IV are correct.
    (C) I and IV are correct.
    (D) II and III are correct.
40. Match the items given in List – I with those in List – II :
          List – I                       List – II
    a. Theory of Clubs            1. Anthony Downs
    b. Impossibility theorem    2. Charles Tiebout
    c. Political of Decision
       Making Model               3. James Buchanan
    d. Optimum
        provision of
        local public
        goods                           4. Kenneth Arrow
    Codes :
          a b c d
    (A) 3 1 2 4
    (B) 3 4 2 1
    (C) 2 3 4 1
    (D) 3 4 1 2
41. Which of the following tax has ‘announcement effect’ ?
    (A) Income tax
    (B) Property tax
    (C) Excise Duties
    (D) Capital gains taxation
42. Which of the following tax is within the jurisdiction of Union or Central
      Government as enumerated in List – I of Schedule VII of the India
      Constitution ?
    (A) Taxes on the consumption and sale of electricity.
    (B) Taxes on goods and passengers carried by road.
    (C) Taxes on luxuries, including entertainments.
    (D) Taxes on Sales and purchase of newspapers and on
          advertisement therein.

43. A tax imposed on a commodity according to its weight, size or
      measurement is called
    (A) Advalorem tax
    (B) Specific tax
    (C) Single tax
    (D) Double taxation
44. Which of the following is Musgrave’s views on incidence of taxation ?
    (A) Settlement of tax on ultimate tax payer.
    (B) Formal and effective incidence of taxation.
    (C) Changes in the distribution of income for private use arising
          from changes in budget policy.

    (D) The final direct money burden of a tax.
45. Given arithmetic mean = 45, mode = 48, then median =
    (A) 46
    (B) 45
    (C) 48
    (D) 49
46. If two events A and B are mutually inclusive, then P(A or B) is
    (A) P(A) + P(B) – P(AB)
    (B) P(A) + P(B) + P(AB)
    (C) P(A) + P(B)
    (D) P(A) P(B)
47. The analysis of variance is carried out by using
    (A) t-test
    (B) Z-test
    (C) c2-test
    (D) F-test
48. Systematic sampling implies that the first item is selected randomly and
    (A) the other items are selected by lottery method
    (B) the other items are selected purposively
    (C) then every kth item is selected
    (D) the other items are selected at the will of the investigator
49. Given the following information match the item in List – I with List – II :
        List – I                                      List – II
    a. Rejecting H0, if it is true         1. b error
    b. Accepting H0, if it is false       2. Standard error
    c. Probability of rejecting H0,
        when it is false                        3. a error
    d. Measuring sampling
        variability due to
        random force                          4. 1 – b error
    Codes :
          a b c d
    (A) 3 1 2 4
    (B) 2 1 4 3
    (C) 2 4 1 3
    (D) 3 1 4 2
50. Assertion (A) : Geometric mean is theoretically considered as the
                              best average to construct index numbers.
      Reason (R) : Geometric mean is used if the range of
                          observations is extremely large.
    Codes :
    (A) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
    (C) (A) is true, but (R) is false.
    (D) (A) is false, but (R) is true.

Monday 8 September 2014

UGC NET JUNE 2014 SOLVED COMMERCE PAPER III

                       LEAD BY KNOWLEDGE COACHING CENTRE AND TUTORIAL
                             UGC NET JUNE 2014 SOLVED COMMERCE PAPER III
 01. The Competition Act, 2002, seeks to regulate
    (A) Anti-competitive agreements
    (B) Mergers and amalgamation
    (C) Unfair trade practices
    (D) (A) and (B) above
02. Indicate the true statement :
    (A) Large industrial houses are outside the purriew of the
          Competition Act, 2002
    (B) There is no provision for curbing frivolous complaints
           under the CPA.
    (C) The Trade Marks Act, 1999 does not apply to services.
    (D) All of the above are true.
03. The time limit for filing a complaints before the District forum under the
      Consumer Protection Act, 1986 is
    (A) one year
    (B) two years
    (C) three years
    (D) There is no such time limit.
04. The Foreign Investment Promotion Board (FIPB) revamps the rules and
      regulations pertaining to
    (A) Accounting of Foreign Investment
    (B) Investment by NRIs
    (C) Foreign investments
    (D) All of the above
05. Which of the legislation(s) do (does) not form part of the legal
      environment of business in India ?
    (A) The Drugs and Cosmetics Act, 1940
    (B) The Prevention of Food Adulteration Act, 1954
    (C) The Monopolies and Restrictive Trade Practices Act, 1969
    (D) Both (B) and (C) above
06. What is the underlying concept that support the immediate recognition of
      an estimated loss ?
    (A) Substance over form
    (B) Consistency
    (C) Matching
    (D) Prudence
07. Which is not the limitation of budgetary control ?
    (A) Budgets are based on forecasts which may not be true
    (B) Installation and operation of a system of budgetary control is costly.
    (C) Budget is a tool of management and not a substitute of management
    (D) Budgets do not pinpoint the lack of efficiency or the presence of it.
08. Profit volume ratio of an enterprise is 40%. To offset 10% decrease in
      selling price, how much sales must be increased ?
    (A) 10%                  (B) 20%
    (C) 25%                  (D) 40%
09. If debt is ` 220, cash balance is ` 20 and equity is ` 300, then the gearing
      ratio is
    (A) 20%               (B) 40%
    (C) 50%               (D) 30%
10. Responsibility accounting aims to
    (A) ensure that a manager is punished if things go wrong.
    (B) ensure that costs become the responsibility of a specific manager.
    (C) allocate costs to all areas of a business.
    (D) reduce the costs that a department incurs.
11. Find the correct matching of the items of List – I with the items of
      List – II given below :
              List – I                                 List – II
    (a) Normal Profit                   (I) Excess of total revenue over total
                                                      explicit cost
    (b) Economic profit               (II) Total revenue equals total economic cost
    (c) Accounting profit             (III) Excess of total revenue over total of
                                                       explicit and implicit costs and a
                                                       normal rate of return
    Codes :
             (I)   (II) (III)
    (A)   (c)   (a)   (b)
    (B)   (b)   (a)   (c)
    (C)   (a)   (b)   (c)
    (D)   (a)   (c)   (b)
12. Assertion (A) : A monopoly firm’s revenue curve is downward
                             sloping from left to right.
      Reason (R) : The monopoly firm does not simultaneously enjoy
                           the freedom to determine both price and quantity to be sold
                           according to its whims and fancy.
    Codes :
    (A) Both (A) and (R) are true.
    (B) Both (A) and (R) are false.
    (C) (A) is true, but (R) is false.
    (D) (A) is false, but (R) is true.
13. The equilibrium level of output for a perfect competitive firm is given by
      the point where :
    (A) MR = MC
    (B) MR < MC
    (C) MR > MC
    (D) MR = MC, and MC starts rising.
14. Match the following :
             List – I                                     List – II
    (i) Dumping                    (a) Monopolistic competitive firm
    (ii) Kinked Revenue
        Curve                         (b) Oligopoly firm
    (iii) Horizontal
          straight line
          revenue curve            (c) Perfectively competitive firm
    (iv) Large number
          of buyers and
          sellers with
          differentiated
          products                     (d) Discriminatory monopoly
    Codes :
           (i) (ii) (iii) (iv)
    (A) (a) (d) (c) (b)
    (B) (b) (d) (a) (c)
    (C) (d) (b) (c) (a)
    (D) (a) (b) (c) (d)
15. Penetrating pricing strategy is appropriate when
    (A) price elasticity of demand in the market is highly inelastic.
    (B) price elasticity of demand in the market is uncertain.
    (C) price elasticity of demand in the market is highly elastic.
    (D) income elasticity of demand in the market is negatively elastic.
16. Assertion (A) : The expected values should be atleast 5 to apply the
                              chi-square test.
      Reason (R) : The chi-square distribution provides an adequate approximation
                          of the sampling distribution.
    Indicate the correct answer from the following :
    Codes :
    (A) Both (A) and (R) are true, and (R) is the right explanation.
    (B) Both (A) and (R) are true, but (R) is not the correct explanation.
    (C) (A) is true, but (R) is false.
    (D) (A) is false, but (R) is true.
17. In a decision problem having four possible alternative decisions and six
      possible states of nature, the pay-off table will include
    (A) Four payoffs
    (B) Six payoffs
    (C) Twenty four payoff
    (D) Ten payoff
18. The mathematical formula for joint probabilities P(AB) = P(A/B) × P(B),
       holds when
    (A) The events are statistically independent.
    (B) The events are statistically dependent.
    (C) The event is either independent or dependent.
    (D) None of the above
19. Which one of the following statements is the correct interpretation of P-value
      of less than 0.01 in hypothesis testing ?
    (A) There is overwhelming evidence to infer that the
          alternative hypothesis is true.

    (B) There is strong evidence to infer that the alternative hypothesis is true.
    (C) There is weak evidence to indicate that the alternative hypothesis is true.
    (D) There is no evidence to infer that the alternative hypothesis is true.
20. Two lists of items are given below :
                List – I                                      List – II
    (i) Charles Babbage                         (a) Mossai
    (ii) Herbert A. Simon                       (b) HTML
    (iii) Tim Berners Lee                        (c) Computer Design
    (iv) Maarc Andreessen                    (d) Decision model
    Which one of the following is the correct match ?
    Codes :
           (i) (ii) (iii) (iv)
    (A) (c) (b) (a) (d)
    (B) (a) (c) (d) (b)
    (C) (b) (a) (c) (d)
    (D) (c) (d) (b) (a)
21. Which of the following statements are true about informal organization ?
    1. It arises spontaneously.
    2. It reflects individual and group goals.
    3. It tends to be permanent and stable.
    4. It tends to be small and manageable.
    5. Its basic purpose is to improve human relations.
    6. Its basic purpose is to achieve organizations goals.
    Codes :
    (A) 1, 2, 3 and 5
    (B) 1, 2, 4 and 6
    (C) 1, 2, 4 and 5
    (D) 2, 3, 5 and 6
22. Which of the following is not true about an employee-centered leader as
       identified by Michigan researchers ?
    (A) Treats subordinates as human beings.
    (B) Shows concern for their well being.
    (C) Focuses on work standards and close supervision.
    (D) Encourages and involves them in goal setting.
23. According to Talcott Parson, organizations can be classified
      primarily into four categories, based on functions. Which of the following
      is not an organization in Parson’s scheme ?
    (A) Political organizations
    (B) Integrative organizations
    (C) Pattern maintenance organizations
    (D) Commercial organizations
24. An MBO programme usually involves the following steps :
    1. Establishing unit’s objectives
    2. Establishing organizational goals
    3. Negotiating or agreeing
    4. Reviewing the performance
    5. Creating action plans
    Indicate the correct sequence of the above steps from the following codes :
    (A) 1, 2, 3, 4, 5
    (B) 2, 1, 3, 5, 4
    (C) 2, 3, 1, 4, 5
    (D) 5, 4, 3, 2, 1
25. Match the following :
            List – I                               List – II
    (a) Fayol                               (1) Economy and Society
    (b) Taylor                              (2) General and Industrial Administration
    (c) Weber                              (3) Principles of Organization
    (d) Mooney and Reilly           (4) Shop Management
    Codes :
           (a) (b) (c) (d)
    (A) (3) (4) (1) (2)
    (B) (2) (4) (1) (3)
    (C) (1) (3) (2) (4)
    (D) (4) (3) (2) (1)
26. A primary group influencing the buyer behaviour is a
    (A) Family
    (B) Professional association
    (C) Religious group
    (D) Trade Union
27. After conducting the business analysis for developing a new
      product, a company must do
    (A) Idea generation
    (B) Product positioning
    (C) Product development and testing
    (D) Test marketing
28. Match the items in List – I with those in List – II :
               List – I                        List – II
    (a) Post purchase
         behaviour                        (i) AIDA
    (b) Personal selling               (ii) ACMEE
    (c) Everitt M. Rogers           (iii) Diffusion of Innovation
    (d) Salesperson training        (iv) Cognitive dissonance
    Indicate the correct matching :
     Codes :
          (a) (b) (c) (d)
    (A) (i) (ii) (iii) (iv)
    (B) (iv) (ii) (iii) (i)
    (C) (iii) (ii) (i) (iv)
    (D) (iv) (i) (iii) (ii)
29. Which type of retail stores generally has the highest operating costs ?
    (A) Department store
    (B) Supermarket
    (C) Chain store
    (D) Co-operative Store
30. Indicate the correct statement :
    (A) India has been a pioneer in social marketing.
    (B) Advertising Standards Council of India is a statutory body set
          up by the government of India.
    (C) Both (A) and (B) are incorrect.
    (D) Both (A) and (B) are correct.
31. Match the items of List – I with the items of List – II :
              List – I                                         List – II
    (a) Trade credit and other
          payables that arise in the
          firm’s day today operations              (i) Maturity Financing
    (b) Financing and asset needs
         over time                                          (ii) Factoring
    (c) A tool for accelerating
         the collection from the customers      (iii) Spontaneous financing
    (d) Seeking financial service to
         finance on its debtors’ balances         (iv) Lock box system
    Codes :
           (a) (b) (c) (d)
    (A) (iv) (iii) (ii) (i)
    (B) (iii) (ii) (iv) (i)
    (C) (ii) (iv) (i) (iii)
    (D) (i) (ii) (iii) (iv)
32. Indicate the cost of equity capital, based on capital asset pricing model,
      with the following information : Beta coefficient – 1.40
      Risk-free rate of interest – 9% Expected Rate of Return on
      equity in the market – 16%
    (A) 9.8%                  (B) 18%
    (C) 18.8%                (D) 16%
33. The degree of super-leverage would be calculated by :
    (A) Adding DOL (Degree of Operating Leverage) and DFL
          (Degree of Financial Leverage)
    (B) Dividing DOL with DFL
    (C) Multiplying DOL and DFL
    (D) Subtracting DOL from DFL
34. Interim cash inflows are reinvested at a rate of return equal to the internal
      rate of return is the built-in mechanism for
    (A) Net Present Value Method
    (B) Internal Rate of Return Method
    (C) Profitability Index Method
    (D) None of the above
35. Who formulated the following model for estimating the market price of
      equity share ?
       P = D +Ra/Rc (E -D)/Rc
    Where, P = Market price of equity share
    D = DPS
    E = EPS
    E – D = Retained earning per share
    Ra = Internal rate of return on investment
    Rc = Cost of capital
    (A) Modigliani-Miller
    (B) Myron-Gordon
    (C) James E. Walter
    (D) Clarkson and Elliot
36. Indicate the quantitative methods of job evaluation
    (A) Ranking methods and Job comparison method
    (B) Point rating method and Factor comparison method
    (C) Grading method and Job classification method
    (D) Factor comparison method and Ranking method
37. Match the items of List – I with those List – II :
               List – I                          List – II
    (1) Career goals                 (a) The process where in an executive
                                                   serves as a guide
    (2) Career path                  (b) The future positions one strives to reach
                                                    as part of career
    (3) Career counseling         (c) The sequential pattern of jobs that form a
                                                   career
    (4) Mentoring                     (d) Guiding people on their possible career
                                                    path
    Codes :
          (1) (2) (3) (4)
    (A) (b) (c) (d) (a)
    (B) (a) (b) (c) (d)
    (C) (d) (c) (b) (a)
    (D) (c) (b) (a) (d)
38. The process of receiving and welcoming an employee when he
      first joins a company and giving him the basic information he needs to
      settle down quickly and happily and starts working, is referred to as
    (A) Placement
    (B) Orientation
    (C) Job Rotation
    (D) Counseling
39. Which is not relevant of succession planning ?
    (A) Analysis of the demand for managers
    (B) Review of existing executives
    (C) Planning individuals career paths
    (D) Recruitment to meet immediate needs
40. Where does recognition of an Employee fall in Maslow’s hierarchy
      of needs theory ?
    (A) Self-actualisation
    (B) Security needs
    (C) Social needs
    (D) Esteem needs
41. The profitability of public-sector banks is low due to
    (i) Over-cautions approach to lending
    (ii) Reserve Bank Policies
    (iii) High Overhead Costs
    (iv) Social-sector lending
    Identify the correct code :
    Codes :
    (A) (i) and (ii)
    (B) (i) and (iv)
    (C) (i), (iii) and (iv)
    (D) (ii) and (iii)
42. Match the items of List – I with those List – II and select correct answer :
                List – I                                List – II
    (1) Narasimham Committee        (a) Lending under consortium
                                                           arrangement
    (2) Shetty Committee                  (b) Frauds and Malpractices in banks
    (3) Ghosh Committee                  (c) Securities operations of banks and financial
                                                            institutions
    (4) Janakiraman Committee         (d) Financial system in India
    Codes :
           (a) (b) (c) (d)
    (A) (3) (4) (2) (1)
    (B) (2) (3) (4) (1)
    (C) (4) (2) (3) (1)
    (D) (3) (4) (1) (2)
43. Which of the following financial institutions is not with in the supervisory Purview
      of Reserve Bank of India ?
    (A) Foreign Commercial Banks Operating in India
    (B) Regional Rural Banks
    (C) Mutual Funds
    (D) State Co-operative Banks
44. The Repo and Reserve Repo rates are resorted to by the RBI as a tool of
    (A) Credit Control
    (B) Settlement Systems
    (C) Currency Management
    (D) Liquidity Control
45. Which one of the following institutions is promoted by the IFCI :
    (A) Credit Analysis and Research Ltd (CARE)
    (B) Rashtriya Gramin Vikas Nidhi (RGVN)
    (C) Clearing Corporation of India Ltd (CCIL)
    (D) Small Industries Development Bank of India (SIDBI)
46. Indicate the right sequence of the stages of internationalization :
    (i) Multinational Company
    (ii) Global Company
    (iii) Transnational Company
    (iv) International Company
    Codes :
    (A) (i) (iv) (ii) (iii)
    (B) (iv) (i) (iii) (ii)
    (C) (i) (iv) (iii) (ii)
    (D) (iv) (i) (ii) (iii)
47. Which of the following is not one of the components of ‘International
      Reserve’ ?
    (A) Special Drawing Rights
    (B) Reserve Position in IMF
    (C) Monetary Gold
    (D) Money Market Instruments
48. Match the items given in List – I with the most appropriate items in List – II :
                    List – I                              List – II
    (a) UNCTAD                              (i) Foreign investment
    (b) WTO                                     (ii) Developing Countries
    (c) TRIMS                                  (iii) UNDP
    (d) ITC                                       (iv) General Council
    Codes :
          (a) (b) (c) (d)
    (A) (ii) (iv) (i) (iii)
    (B) (iii) (iv) (i) (ii)
    (C) (iv) (ii) (i) (iii)
    (D) (iii) (ii) (i) (iv)
49. Duty levied on the value of goods imported is referred to as
    (A) Ad valorem Duty
    (B) Compound Duty
    (C) Specific Duty
    (D) Import Duty
50. Which of the following can be included in the current account of the
      balance of payments ?
    (i) Purchase of goods from abroad
    (ii) Sale of services abroad
    (iii) Workers’ remittances from aboard
    (iv) Sale of copyright to foreigners
    (v) Direct investment in equity capital
    Codes :
    (A) (i), (ii) and (iii)
    (B) (i), (ii) and (iv)
    (C) (i), (ii), (iii) and (v)
    (D) (i), (ii), (iii) and (iv)
51. Which of the following items would be specifically included in the
       statement of cash flows constructed in compliance with AS-3 ?
    (A) Conversion of debt to equity
    (B) Acquiring an asset through lease
    (C) Operating and non-operating cash flow information
    (D) Purchasing a building by giving a mortgage to the seller
52. Fixing the value of an employee depending upon his productivity,
      promotability, transferability and retainability is the core of the
    (A) Certainty equivalent model
    (B) Stochastic Reward Valuation model
    (C) Human asset multiplier model
    (D) Present value of future earnings model
53. Which of the following refers to a situation in which the merger of
      companies results in over 25% of the market in the hands of the merged
      companies ?
    (A) ‘Gateway’ condition
    (B) Restrictive practice
    (C) ‘Share of supply’ test
    (D) ‘Asset’ test
54. Which of the following is true ?
    (A) Systematic risk is diversifiable but unsystematic risk is nondiversifiable.
    (B) Systematic risk is nondiversifiable but unsystematic risk is diversifiable.
    (C) Both systematic and unsystematic risks are  diversifiable.
    (D) Both systematic and unsystematic risks are nondiversifiable.
55. Match the following :
           List – I                                         List – II
     (Explanation)                                       (Term)
    (a) It involves using
         the version of
         master file and
         the update
         transactions used
         to create the
         current file to recreate
         the current
         master file if it
         becomes
        damaged.                              (1) Audit Trail Controls
    (b) It involves
         copying the
         whole or a
         portion of the
        database to some
        back up medium, typically
        magnetics tape.                      (2) Dumping
    (c) It stores current
         and historical
        data extracted
        from various
        operations
        systems and
        consolidates for
        management
        reporting and analysis.            (3) Grandfather, Father, Son
    (d) It maintains the
        chronology of
        events that occur
        either to the
        database
        definition or the
        database itself.                       (4) Data warehouse for Accounting
    Codes :
           (a) (b) (c) (d)
    (A) (3) (2) (4) (1)
    (B) (3) (1) (2) (4)
    (C) (1) (3) (2) (4)
    (D) (4) (3) (2) (1)
56. Which one is not a major component of holistic marketing ?
    (A) Relationship marketing
    (B) Integrated marketing
    (C) Internal marketing
    (D) Socially responsible marketing
57. The final step in target marketing is
    (A) Market Analysis
    (B) Market Positioning
    (C) Market Segmentation
    (D) Market Targeting
58. The most recent consideration in product packaging is
    (A) Cost effectiveness
    (B) Product protection
    (C) Product promotion
    (D) Economy
59. Distribution logistics (also termed as ‘market logistics’) does not include
    (A) Distribution channel
    (B) Inventory
    (C) Transportation
    (D) Warehouses
60. Most of the money spent in measuring the effectiveness of advertising is spent on
    (A) Communication-response research
    (B) Pre-testing the advertisements
    (C) Post-testing the advertisements
    (D) Sales-response research
61. Which of the following is not included in the model of the systems
       approach to human resource management ?
    (A) Departmentation
    (B) Recruitment
    (C) Performance Appraisal
    (D) Promotion
62. Which one of the following is not an example of Herzberg’s hygiene factors ?
    (A) Advancement
    (B) Interpersonal relations
    (C) Job security
    (D) Work conditions
63. Which of the following two forms of collective bargaining were identified
       by Chamberlain and Kuhn ?
    (A) Integrative Bargaining and Distributive Bargaining
    (B) Conjunctive Bargaining and Cooperative Bargaining
    (C) Integrative Bargaining and Cooperative Bargaining
    (D) Distributive Bargaining and Conjunctive Bargaining
64. Who observed that a worker’s behaviour and sentiments are closely related ?
    (A) Peter Drucker                  (B) Elton Mayo
    (C) F.W. Taylor                      (D) Dale Yoder
65. What is not an operative function of HRM ?
    (A) Procurement
    (B) Development
    (C) Organising
    (D) Integration
66. The total number of Special Economic Zones notified by the
      Government of India till March 2011 under the SEZ Act, 2005 is
    (A) 154                 (B) 184
    (C) 286                 (D) 386
67. The different forms of IMF assistance are given below. Identify
      the one which is mainly meant for Less Developed Countries (LDCs)
    (A) Credit Tranche Drawing
    (B) Extended Fund Facility
    (C) Compensatory Financing Facility
    (D) Structural Adjustment Facility
68. In the context of globalization, ‘Levitt Thesis’ means
    (A) Standardisation strategy to respond to the worldwide homogenised market
           and expand the market through aggressive low pricing
    (B) Customise products to regional markets
    (C) Customise products to meet the national market
    (D) None of the above
69. Which one of the following is an internal hedging technique ?
    (A) Leading
    (B) Netting
    (C) Both (A) and (B) above
    (D) Swap
70. Business conglomerates have different names in different countries.
      Which country’s conglomerates are called ‘Chaebols’ ?
    (A) Japan
    (B) South Korea
    (C) Germany
    (D) China
71. Mr. X, a non-resident, earned ` 36,000 as interest on German Development Bonds.
     Of this, he received one-sixth in India. The amount to be included as interest for
      the computation of his Gross Total Income is
    (A) ` 36,000                 (B) ` 30,000
    (C) ` 6,000                    (D) Nil
72. Consider the following problem relating to a let-out house property :
      Municipal value – ` 60,000 Fair rent – ` 68,000 Standard rent under the Rent
      Control Act – ` 62,000 Annual Rent received – ` 65,000 The Gross Annual Value
      of the property will be
    (A) ` 68,000               (B) ` 62,000
    (C) ` 65,000               (D) ` 60,000
73. From the following, identify by the web-based financial software :
    (A) Private Equity Software
    (B) Share Accounting Software
    (C) Wealth Management Software
    (D) WINGS 2013
74. Which of the following are true in tax planning ?
    (i) It is futuristic in its approach.
    (ii) It has limited scope compared to tax management.
    (iii) The benefits arising from it are limited particularly in the short run.
    (iv) Its main objective is to reduce the tax liability.
    Codes :
    (A) (i), (ii) and (iii)
    (B) (i) and (ii)
    (C) (i) and (iv)
    (D) (ii), (iii) and (iv)
75. The benefits of debt financing over equity financing are likely to be
      highest in which of the following situations ?
    (A) High marginal tax rates and low non-interest tax benefits
    (B) Low marginal tax rates and low non-interest tax benefits
    (C) High marginal tax rates and high non-interest tax benefits
    (D) Low marginal tax rates and high non-interest tax benefits.