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Saturday 24 December 2016
Friday 16 December 2016
Wednesday 7 December 2016
SRISHTI’S MODEL COMMON PROFICIENCY TEST AFTERNOON SESSION GENERAL ECONOMICS & QUANTITATIVE APTITUDE
Instructions:
Question paper reading time: 1:45 PM-2:00 PM
Time for exam 2:00 PM-4:00 PM
Use Ruled sheet for writing test & submit physically on 09/12/2016
SRISHTI’S MODEL COMMON PROFICIENCY
TEST
SECTION C: GENERAL ECONOMICS
Time Allowed – 2 Hours Maximum Marks – 100
1.
Who expressed
the view that ―Economics is neutral between ends‖?
(a)
Robbins
(b)
Marshall
(c)
Pigou
(d)
Adam
Smith
2. Question like what should be the
level of national income or what should be the wage rate, fall within the scope
of
(a)
Positive
Science
(b)
Normative
science
(c)
Both
(a) and (b)
(d)
None
of the above
3.
Suppose
your income increases by 25 per cent and your demand for skimmed milk decreases
by 15 per cent? We may infer that skimmed milk is considered ____ by you.
(a)
necessity
(b)
luxury
(c)
inferior
(d)
Insufficient
data
Use the figure at right to answer
questions 104-110
4.
Which
of the following represents the concepts of trade-offs?
(a)
A
movement from point A to point B
(b)
A
movement from point U to point C
(c)
Point
W
(d)
Point
U
5.
Which
of the following would not move the PPF for this economy closer to point W?
(a)
A
shift in preferences towards greater capital formation
(b) An improvement in the overall level
of technology
(c) A decrease in the amount of
unemployed labour resources
(d) An increase in the population growth
rate.
6.
Moving
from point A to point D, what happens to the opportunity cost of producing each
additional unit of consumer goods?
(a)
It
increases
(b)
It
decreases
(c)
It
remains constant
(d)
It
increases up to point B and then falls thereafter.
7.
What
is the opportunity cost of moving from point A to point B?
(a)
100
units of capital goods
(b)
8
units of consumer goods
(c)
90
units of capital goods
(d)
10
units of capital goods
8.
Unemployment
or underemployment of one or more resources is illustrated by production at
point
(a)
A
(b)
C.
(c)
U
(d)
W
9.
Which
of the following is a reason for the curvature or bowed-out shape of the PPF?
(a)
Falling
unemployment as we move along the curve
(b)
The
economy having to produce less of one good in order to produce more of another
good
(c)
Opportunity
costs increase as more of a good is produced
(d)
None
of the above
10.
Which
of the following is a reason for the negative slope of the PPF?
(a)
The
inverse relationship between the use of technology and the use of natural
resources
(b)
Scarcity,
at any point in time we have limited amounts of productive resources
(c)
Resource
specialization
(d)
Increasing
opportunity costs.
11.
In
case of a Giffen good, the demand curve will be;
(a)
Horizontal
(b)
Downward
–sloping to the right
(c)
Vertical
(d)
Upward
–sloping to the right
12.
When
Productivity increases -----------------------------
(a)
Prices
rise
(b)
Living
standards improve
(c)
There
are fewer good jobs
(d)
Living
standards deteriorate
13.
Cross
elasticity of demand between mobile phone and its charger is:
(a)
infinite
(b)
low
(c)
positive
(d)
negative
114
With a fall in the price of a commodity:
(a)
Consumer‘s
real income increases
(b)
Consumer‘s
real income decreases
(c)
There
is no change in the real income of the consumer
(d)
None
of the above
115. The supply of goods refers to:
(a)
Actual
production of goods
(b)
Total
existing stock of good
(c)
Stock
available for sales
(d)
Amount
of the good offered for sale at a particular price per unit of time
116. Which one of the following could
explain a shift to the right of the supply curve for a good?
(a)
The
imposition of a tax on the good
(b)
A new
supplier entering the market
(c)
A rise
in firms‘ wage costs
(d) A rise in the price of the good
117. A
relative price is
(a)
Price
expressed in terms of money
(b)
What
you get paid for babysitting your cousin
(c)
The
ratio of one money price to another
(d)
Equal
to a money price
118. The cost of one thing in terms of
the alternative given up is known as:
(a)
Production
cost
(b)
Physical
cost
(c)
Real
cost
(d)
Opportunity
cost
119. You find that in a market there are
5 producers selling similar products. They advertise vigorously to promote
their products. You conclude that the market is:
(a)
Perfectly
competitive
(b)
Monopolistically
competitive
(c)
Oligopolistically
competitive
(d)
Monopolist
Read the following paragraph and
answer Questions number 120-125
Radhika
quit her job at a private company where she earned Rs. 6,00,000 a year. She
withdrew Rs. 10,00,000 in a savings account that earned 10% interest annually
to buy a second hand mini bus to commune passenger between Cannaught place and
Noida. There are 500 passengers who will pay Rs. 12000 a year each for commuter
services; Rs. 4000 from each passenger goes for petrol, maintenance,
depreciation etc.
120. What is Radhika‘s total revenue from
her commuter service?
(a)
Rs.
60,00,000
(b)
Rs.12,90,000
(c)
Rs.
1,20,000
(d)
Rs.
3,13,0000
121. Calculate Radhika‘s accounting cost.
(a)
Rs.
12,00,000
(b)
Rs.
36,00,000
(c)
Rs.20,00,000
(d)
Rs.
8,70,000
122. Calculate Radhika‘s Economic cost.
(a)
Rs.
27,00,000
(b) Rs. 15,00,000
(c) Rs. 26,00,000
(d) Rs.21,00,000
123. We can say that Radhika:
(a)
Earned
economic profits but suffered accounting loss
(b)
Earned
economic profits and accounting profits
(c) Suffered economic loss and
accounting loss
(d) Earned accounting profits but
suffered economic loss
124.
Calculate Radhika‘s accounting profit/loss.
(a)
Rs.40,
00,000
(b)
Rs.
12,00,000
(c)
Rs.
8,70,000
(d)
Rs.
2,90,000
125. Calculate Radhika‘s economic
profit/loss.
(a)
Rs.
40,00,000
(b) Rs. 24,00,000
(c) Rs. 33,00,000
(d) Rs. 39,00,000
126. Pure oligopoly is based on the ___
products.
(a)
differentiated.
(b)
unrelated
(c)
homogeneous
(d)
none
of the above
127. If Gini index of India is 0.33 and
China is 0.22. We can say that :
(a)
Inequality
of income in India is less than that in China.
(b)
Inequality
of income in India is more than that in China
(c)
India
is a richer than China as its Gini index is more than that of China .
(d)
India
is a poorer than China as its Gini index is more than that of China.
128. According to RBI, an enterprise is
considered as sick if :
(a)
most
of its employees are sick.
(b)
any of
the borrowal account of the enterprise remains NPA for three months or more and
there is erosion due to accumulated losses to the extent of 50% of its net
worth during the previous accounting year.
(c)
productivity
is nil or negative.
(d)
it is
unable to make profits more than 10% of its capital employed.
129. If Bank Rate is to be decreased in
India, which of the following banks will do it?
(a)
SBI
(b)
World
Bank
(c)
Asian
Development Bank
(d)
Reserve
Bank of India
130. An industrial unit can not become
sick due to :
(a)
demand
recession
(b)
uneconomic
size
(c)
high
productivity of labour and capital.
(d)
financial
mismanagement.
131. GNP at market price minus
depreciation is ____.
(a) GDP at factor cost
(b) NNP
at factor cost
(c)
NNP at
market price.
(d)
GNP at
factor cost.
132. Identify which of the following is
not factor payment:
(a)
wages
paid to laborers.
(b)
rent
paid to the factory owner.
(c) scholarship given to the poor
student.
(d) free uniform to the defense
personnel.
133. TCS, Infosys, Reliance in India are
examples of .
(a)
small
scale units.
(b)
private
sector units.
(c) public sector units
(d) sick units.
134. Price discrimination is related to:
(a)
Time
(b)
Size
of the purchase
(c)
Income
(d)
any of
the above
135. Abolition of intermediaries and
tenancy reforms are both parts of
(a)
Industrial
reforms in India
(b)
External
sector reforms in India
(c)
Land
reforms in India
(d)
Banking
reform in India
Read the following paragraph and
answer Question 136-138
In
India, the problem of unemployment has become very serious as around 9 per cent
of the labour force is unemployed. Not only there is open unemployment in
India, disguised unemployment is also wide spread. The various causes
responsible for high incidence of unemployment in India are growing population,
inappropriate technology, faulty education system and failure of growth process
in generating appropriate and adequate jobs.
136. In urban areas the unemployment is
normally:
(a)
Industrial
(b)
Educational
(c)
Both
(a) & (b)
(d)
Seasonal
137. Unemployment means
(a)
Unwilling
to work
(b)
Not
gainfully employed in any productive activity
(c)
Gain
fully employed
(d)
None
of the above
138. Most of the unemployment in India is
(a)
Voluntary
(b)
Structural
(c)
Frictional
(d)
Technical
139. If there are 10000 persons in an
economy, out of which 6000 are economically active, out of these 6000, only
5400 are in work force. What is the unemployment rate?
(a)
7%
(b) 10%
(c) 63%
(d)
Insufficient data
140. Who is regulatory authority for
telecom in India?
(a)
SEBI
(b)
MTNL
(c)
BSNL
(d)
TRAI
141. Which of the following statements is
correct?
(a)
India‘s
population is the second largest in the world.
(b)
The
per capita income of India is one of the highest in the world.
(c)
There
is no sector now in India in which FDI is prohibited.
(d)
India
imposed quantitative restrictions on almost all the trade items as part of the
economic reforms.
142. Fiscal Policy means
(a)
Policy
relating to money and banking in a country
(b)
Policy
relating to public revenue and public expenditure
(c)
Policy
relating to non-banking financial institutions
(d)
None
of the above
143
-------------- refers to relaxation of previous government restrictions
(a)
Privatization
(b)
Globalisation
(c)
Disinvestment
(d)
Liberalization
144. Which of the following is the
watchdog of international trade?
(a)
IMF
(b)
World
Bank
(c)
USA
(d)
WTO
145. DFEC stands for
(a)
Direct
Foreign Exchange Control
(b)
Direct
Finance Exchange Control
(c)
Duty
Free Export Credit
(d)
Duty
Free Exchange Credit
146. FDI is allowed in all of the
following except:
(a)
Lottery
business
(b)
Banking
operations
(c)
Insurance
(d)
Air
Transport Services
147. _____ refers to that portion of
total deposits of a commercial bank which it has to keep with RBI in the form
of cash:
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio.
(c)
Repo
Rate.
(d)
Bank
Rate.
148. As a result of foreign trade
reforms:
(a)
The
number of import licenses has increased
(b)
Only a
few types of goods and services can now be exchanged freely
(c)
EPCG
scheme has been abolished
(d)
The
average tariff rates have been reduced
149. Which of the following is not
correct?
(a)
WTO generally
forbids the use of quantitative restrictions.
(b)
IMF
provides finance to correct disequilibrium in balance of payments.
(c)
RBI
promotes trade amongst South Asian countries.
(d) IBRD gives long term loans for
development.
150. Narrow
money refers to
(b)
M2
(c)
M3
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