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CPT – December 2017 Question Paper (Compiled By :- VSI, Jaipur. Based on Memory) Marks 100 Time : 2 Hours

Session 1st

Part A – Fundamentals of Accounting

01. Which of the following is not a fundamental accounting assumption? (a) Going concern (b) Consistency (c) Prudence (d) Accrual 02. A change in accounting policy is justified: (a) To comply with accounting standard (b) To ensure more appropriate presentation of the financial statements of the enterprise (c) To comply with law (d) All of the above 03. Cost of inventory ` 1,00,000; Market Value ` 80,000. If the inventory is valued at

` 1,00,000, which of the following accounting concepts is violated? (a) Money measurement (b) Cost (c) Prudence (d) Periodicity 04. Amount paid to a supplier is: (a) An event (b) A Transaction (c) Both (a) and (b) (d) Neither (a) nor (b) 05. Economic life of an enterprise is split into some periodic intervals as per ___ concept: (a) Money Measurement (b) Matching (c) Periodicity (d) Accrual 06. According to _________ concept, the same method of accounting is to be followed year

after year: (a) Going Concern (b) Entry (c) Cost (d) Consistency 07. Benefits of AS (Accounting Standards) are: (a) To harmonise accounting policies (b) To eliminate the non-comparability of financial statements (c) To improve the reliability of financial statements (d) All of the above 08. Purpose of an accounting system include all the following except: (a) Interpret and record the effects of business transaction (b) Classify the effects of transactions to facilitate the preparation of reports (c) Summarize and communicate information to decision markers (d) Dictate the specific types of business enterprise transactions that the

enterprises may engage in 09. Prepaid Insurance account is a ______________ : (a) Nominal account (b) Real account (c) Representative Personal Account (d) Artificial Personal account

10. A trader purchased goods for ` 4,000 at a trade discount of 5%. As he paid the amount immediately, a cash discount of ` 100 was also allowed. In this case, Purchases A/c is debited by:

(a) ` 4,000 (b) ` 3,800 (c) ` 3,700 (d) ` 3,900 11. Some of the goods purchased for trading are used for the construction of business

premises. The account to be credited is____________ : (a) Business premises A/c (b) Purchases A/c (c) Sales A/c (d) None of the above 12. Cash Book is a type of _____________ but treated as a __________ of accounts: (a) Subsidiary book, principal book (b) Principal book, subsidiary book (c) Subsidiary book, subsidiary book (d) Principal book, principal book 13. A sales return of ` 2,000 has been wrongly posted to the credit of Purchase Returns

accounts, but has been correctly posted to the customer’s account. The effect on the trial balance will be:

(a) Debit total increases by ` 4,000 (b) Credit total increases by ` 4,000 (c) Credit total increases by ` 2,000 (d) Debit total increases by ` 2,000 14. While finalizing the current year’s profit, the company realized that there was an

error in the valuation of closing inventory of the previous year. In the previous year, closing inventory was valued more by ` 50,000. As a result:

(a) Previous year’s profit is overstated and current year’s profit is also overstated (b) Previous year’s profit is understated and current year’s profit is overstated (c) Previous year’s profit is understated and current year’s profit is also understated (d) Previous year’s profit is overstated and current year’s profit is also understated 15. An amount of ` 500 received from a customer has been debited to his account. This

error is classified as____________: (a) Error of principle (b) Error of omission (c) Error of commission (d) Compensating error 16. Starting with the Debit balance as per Cash Book, cheques deposited but not cleared

will be: (a) Added in B.R.S. (b) Deducted in B.R.S. (c) Ignored in B.R.S. (d) None of the above 17. A trader has an opening inventory of ` 70,000 on 1.1.2016, which consists of a slow

moving item costing ` 10,000 and was written off by ` 2,000. This item was sold for ` 9,000 during the year. Barring the transaction, the gross profit on sales for the year 2016-17 remained at 20%. The sales and purchases during the year amounted to ` 5,09,000 & ` 3,78,000 respectively. Find the value of closing inventory on 31.03.2017:

(a) ` 44,000 (b) ` 38,000 (c) ` 40,000 (d) ` 42,000 18. During a year the sales and purchases of a firm amounted to ` 4,00,000 and

` 4,00,000 respectively. Opening inventory was Nil. Closing inventory at selling price was ` 1,00,000. Find out the cost of closing inventory using Adjusted Selling Price Mehtod:

(a) ` 80,000 (b) ` 1,00,000 (c) ` 1,50,000 (d) ` 1,40,000 19. E Ltd. a dealer in second-hand cars has the following five vehicles of different models

and makes in their inventory at the end of the financial year 2009-10. Car Cost (`) NRV (`) Fiat 90,000 95,000 Ambassador 1,15,000 1,55,000 Maruti Esteem 2,75,000 2,65,000 Maruti 800 1,20,000 1,25,000 The value of inventory included in the balance sheet of the company as on March 31,

2010 was : (a) ` 7,62,500 (b) ` 7,70,000 (c) ` 5,90,000 (d) ` 8,70,000 20. Which of the following expense is not included in the acquisition cost of a plant and

equipment? (a) Cost of site preparation (b) Delivery and handling charges (c) Installation costs (d) Fire Insurance premium 21. A machinery was purchased for ` 6,00,000 on 01.04.2012 and paid ` 30,000 on its

installation. It is estimated that the useful life of the machinery is 10 years and its scrap value is ` 20,000. The amount of depreciation to be charged for the year ending 31.03.2017 will be ___________:

(a) ` 61,000 (b) ` 62,000 (c) ` 60,000 (d) ` 63,000 22. The book value of a machinery on 01.04.2016 was ` 70,000. Depreciation is charged

at 10% p.a. under W.D.V. Method on 31st March every year. The machine was sold for ` 60,000 on 01.08.2017, Calculate the Profit / Loss on sale of machinery:

(a) Profit ` 3,000 (b) Loss ` 3,000 (c) Profit ` 900 (d) Loss ` 900 23. The objectives of providing depreciation on an asset are: (a) To ascertain the true Profit/Loss of the firm (b) To provide funds for the replacement of fixed asset (c) To show the true financial position in the Balance Sheet (d) All of the above 24. The machine is purchase for ` 3,00,000. Its estimated working life is 28,000 hours,

the Scrap value is ` 20,000. Anticipated pattern of working hours are as follows: Year Hours 1 – 3 3,000 4 – 6 2,600 7 – 10 2,800 Depreciation for 8th Years is : (a) ` 28,000 (b) ` 19,286 (c) ` 30,000 (d) ` 26,000

25. Increase in the value of Assets ` 1,00,000. Decrease in the value of Liabilities ` 50,000. Then owner’s equity will:

(a) Increase by ` 1,50,000 (b) Increase by ` 50,000 (c) Decrease by ` 1,50,000 (d) Decrease by ` 50,000 26. Net profit before charging manager’s commission is ` 49,500 and the manager is to

be allowed a commission of 10% on the profit after charging such commission. Commission amount will be ___________:

(a) ` 5,000 (b) ` 4,950 (c) ` 4,500 (d) None of these 27. Goods costing ` 8,000 were destroyed by fire. Insurance company accepted a claim of

` 5,000. The amount to be credited to Purchases / Trading A/c will be _________ : (a) ` 5,000 (b) ` 8,000 (c) ` 3,000 (d) ` 13,000 28. Capital introduced at the beginning by Ram ` 13,000 Further capital introduced

during the year ` 3,000. Drawings ` 4,000 and closing capital is ` 20,000. The amount of net profit will be:

(a) ` 8,000 (b) ` 7,000 (c) ` 4,000 (d) ` 11,000 29. Rent paid on 1st October, 2016 for the year to 30th September, 2017 was ` 1,50,000

and rent paid on 1st October, 2017 for the year to 30th September, 2018 was ` 1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:

(a) ` 1,57,500 (b) ` 1,50,000 (c) ` 1,80,000 (d) ` 1,65,000 30. For mutual accommodation of Mita and Rita, Rita accepted a bill drawn on her by

Mita for ` 7,500. The said bill is discounted by Mita at ` 7,400 and remitted 1/3rd of the proceeds to Rita. To honour the bill, the amount to be paid by Mita to Rita on the due date will be:

(a) ` 7,500 (b) ` 4,500 (c) ` 5,000 (d) None of the above 31. Ram draws a bill on Rahim for ` 15,000. The bill was discounted with Bank at

` 14,900. On the due date the bill was dishooured and the noting charges amounted to ` 50. What is the amount to be debited by Bank to Ram’s account?

(a) ` 14,000 (b) ` 14,900 (c) ` 15,000 (d) ` 15,050 32. G draws a bill on R.G. endorses the bill to S. On the due date the bill is dishonoured.

On dishonor, which account is credited in the books of G? (a) Bills Receivable A/c (b) S A/c (c) R A/c (d) Bills Payable a/c 33. 600 boxes of goods are consigned at a cost of ` 250 each. Consignor’s expenses

amounted to ` 3,000. 1/6th of the boxes are still in transit. 3/5th of the boxes received by consignee are sold at ` 300 each. The value of goods in transit will be

(a) ` 25,500 (b) ` 25,000 (c) ` 30,000 (d) ` 40,000

34. MN of Mumbai sent out goods costing ` 4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for ` 5,00,000. However, the consignee could recover ` 4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to profit & Loss A/c will be :

(a) ` 25,000 (b) ` 17,000 (c) ` 20,000 (d) ` 33,000 35. Mr. Mehta sent 1,000 shirts costing ` 400 each to Mr. Kehta on consignment basis.

Mehta paid ` 20,000 as expenses. Kehta sold 900 shirts at ` 500 each. His selling expenses amounted to ` 15,000. Find the value of closing inventory.

(a) ` 42,000 (b) ` 43,500 (c) ` 40,000 (d) ` 45,000 36. P & Q entered into a joint venture. P purchased 5,000 units of goods at ` 30 each. Q

sold ` 4,800 units at ` 50 each. The remaining goods were taken over by Q at a value of ` 5,000. P is allowed a commission of 2% on purchased and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture.

(a) ` 46,300 (b) ` 44,800 (c) ` 50,000 (d) ` 45,000 37. Mukes and Vimal entered into a joint Venture. Mukesh purchased goods for ` 36,000

and paid ` 39,00 as expenses. Vimal purchased goods for ` 17,000 and paid ` 3,000 as expenses. Entire goods were sold for ` 65,000. They share profits and losses in the ratio of 2:1 the final remittance to Mukesh will be :

(a) ` 43,300 (b) ` 40,000 (c) ` 50,000 (d) ` 65,000 38. Under sales on return or approval basis, the ownership of goods is passed only (a) When the retailer gives his approval (b) If the goods are not returned within specified period. (c) Both (a) & (b) (d) None of the aboe 39. Goods were sent to a customer on sale or Return basis at cost +30%. The invoice

price is ` 6,500. At the end of the year market value of the goods is 5% less than the cost. Closing inventory is valued at

(a) ` 5,000 (b) ` 4,750 (c) ` 4,800 (d) ` 6,170 40. Guarantees given in respect of third parties will be considered as : (a) Contingent liability (b) Current liability (c) Contingent asset (d) Provision 41. In the absence of any provision in the partnership agreement, profit and losses are

shared (a) In the ratio of capital (b) Equally (c) In the ratio of loans given by them to the firm (d) None of the above

42. Wages paid for Installation of Machinery was wrongly Debited to wages A/c Error is : (a) Commission Error (b) Principal Error (c) Compensatory Error (d) Partial omission 43 R,S and T are partners sharing profits and losses in the proportion of 3:2:1. S retired

and the new profit sharing ratio between R and T is 3:1 and the Reserve of Rs. 15,000 is divided among the partners in the ratio of. :

(a) ` 2,500 : ` 5,000 : ` 7,500 (b) ` 5,000 : ` 2,500 : ` 7,500 (c) ` 7,500, : ` 5,000 : ` 2,500 (d) ` 2,500 : ` 7,500 : ` 5,000 44. Calculate the value of goodwill of a firm under capitalization Method. Capital Employed in the firm ` 6,00,000 Reasonable Rate of Return 14% Average profit : ` 1,12,000 (a) ` 2,10,000 (b) ` 2,00,000 (c) ` 2,80,000 (d) ` 2,40,000 45. At the time of retirement of a partner, firm gets ___ from the insurance company

against the joint life Policy taken jointly for all the partners. (a) Policy Amount. (b) Surrender Value (c) Policy Value for the retiring partner and surrender Value for the rest. (d) Surrender value for all the partners. 46. Goodwill brought in by incoming partner in cash for joining in a partnership firm is

taken away by the old partners in their ____ ratio (a) Capital (b) New profit Sharing (c) Sacrificing (d) Old profit Sharing 47. Jain and Deepak are partners in a firm with no partnership agreement. The profit for

the year was ` 14,200. Deepak claimed interest @12% p.a. on the loan of ` 70,000 given to the firm. Calculate the share of Jain and Deepak in the profit of the firm. :

(a) ` 5000 & ` 9,200 (b) ` 7,100 & 7,100 (c) ` 2,100 & ` 12,100 (d) None 48. Credit purchase of Machinery should be recorded in : (a) Purchase Book (b) Cash Book (c) Petty Cash Book (d) Journal proper 49. On admission of a partner unrecorded investments worth ` 5,000 and unrecorded

liability toward suppliers for ` 1,500 will be recorded in : (a) Revaluation A/c (b) Capital A/c (c) Realisation A/c (d) None of the three 50. A Company issued 30,000 shares of ` 10 each, payable as ` 3 on application, ` 3on

allotment and ` 4 on call. Applications were received for 50,000 shares. Allotment was made on pro-rata basis. Excess application money was refunded. Mr. X, a holder of 100 shares failed to pay the call money. His shares were forfeited. The above transactions are related to :

(a) Over subscription (b) Pro – rata allotment (c) Forfeiture (d) All of the Above

51. Bajaj Ltd. Issued 4,000 shares of ` 10 each at a premium of 20%, payable as ` 5 on application (including premium), ` 3 on allotment and ` 4 on call. Mr. Q, a holder of 100 shares failed to pay the allotment and call money. His shares were forfeited. The amount to be credited to Forfeited Shares A/c will be :

(a) ` 500 (b) ` 400 (c) ` 1000 (d) ` 300 52. A Company forfeited 100 shares of ` 10 each, on which ` 5 per share was already paid

up. Out of them 70 shares are reissued at ` 7 per share as fully paid up. The amount to be transferred to the Capital Reserve A/c will be :

(a) ` 350 (b) ` 490 (c) ` 140 (d) ` 150 53. Discount on issue of debentures is a : (a) Revenue loss to be charged in the year of issue (b) Capital loss to be written off from capital reserve (c) Capital loss to be written off over the tenure of the debentures (d) Capital loss to be shown as goodwill 54. Preference shares amounting to ` 3,00,000 are redeemed at a premium of 5% by

issue of equity shares amounting to ` 2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve:

(a) ` 1,00,000 (b) ` 1,20,000 (c) ` 2,10,000 (d) None 55. LT Ltd. Purchased land and building from Ab Ltd. For a book value of ` 22,00,000.

The consideration was paid by issue of 12% Debentures of ` 100 each at a premium of 10% The Debentures A/C is credited by : :

(a) ` 22,00,000 (b) ` 20,00,000 (c) ` 24,20,000 (d) ` 25,20,000 56. Which of the followings statements is false : (a) Equity is owner’s stake and the debenture is a debt (b) Rate of interest on debentures is fixed (c) Debenture holders get preferential treatment over the equity holders at the time of

liquidation (d) Interest on debentures is an appropriation of profits. 57. The purpose of accommodation bill is : (a) To finance actual purchase or sale of goods (b) To facilitate trade transmission (c) When both parties are in need of funds (d) None of the above 58. On 15.02.17 X draws a bill on Y for 30 days. Y accepted the bill on 18.02.17. The

maturity date of the bill will be : (a) 18.03.17 (b) 21.03.17 (c) 23.03.17 (d) None of the above

59. The part of share capital which can be called up only on the liquidation of a company is called

(a) Authorized capital (b) Called up capital (c) Capital reserve (d) Reserve capital 60. A company issued 15,000 shares of ` 10 each. Called up value per share is ` 8 A

holder of 250 shares paid ` 2 per share only. On forfeiture of his shares, share Capital A/c is debited by :

(a) ` 2,500 (b) ` 2,000 (c) ` 500 (d) None of these

Part B – Mercantile Laws

61 The offer can be lapsed in case of : (a) Revocation (b) by rejection of offeree (c) Counter offer (d) All of the Above 62 An offer open for acceptance over a period of time is : (a) Void offer (b) Counter offer (c) Implied offer (d) Standing Offer 63 A specific proposal is : (a) A proposal made to public at large (b) A proposal made to a particular person (c) A proposal made to anyone (d) A proposal open for over a period of time 64 A lunatic person is : (a) A minor (b) An insolvent person (c) An alien enemy (d) An unsound mind person 65 Threat to commit suicide is : (a) Undue influence (b) Fraud (c) Coercion (d) Misrepresentation 66 Where both the parties to an agreement under a mistake as to a matter of fact, which

is essential to the agreement, the agreement is : (a) Valid (b) Void (c) Voidable (d) Illegal 67 If a consent of a party is not free, then the contract is : (a) Valid (b) Void (c) Voidable (d) Illegal 68 Mere silence as to facts likely to affect the desire of the party does not amount to : (a) Coercion (b) Fraud (c) Mistake (d) Misrepresentation 69 A contract formed out of love and affection is valid, if it is : (a) Expressed in writing only (b) Written and registered under law (c) Oral promise (d) Contractual promise 70 Right in Rem means : (a) Right to make contract with one party (b) Right to sue a particular person (c) Right available to a person against whole world (d) None of the above 71 Executory contract is : (a) Where all the parties to a contract have performed their obligations (b) Where something remains to be done by the parties (c) No one is performed (d) None of the above

72 The contract is discharged under mutual agreement through : (a) Death (b) Insolvency (c) Novation (d) Impossibility of performance 73 ‘A’ owes ` 25,000 to ‘B’ pays ` 22,000 in full and final settlement of account. This is : (a) Novation (b) Alteration (c) Remission (d) Cancellation 74 ‘X’ agree ‘Y’ to work from 1-4-17. On 27-3-17, he writes a letter to ;Y’ that no need to

join in work. It is _______ types of breach. : (a) Actual (b) Anticipatory (c) Substitution (d) Rescission 75 Supervening impossibility is an : (a) Impossibility occurs after entering into contract (b) Impossibility occurs before entering into contract (c) Impossibility occurs at the time of entering into contract (d) None of the above 76 Which of the following statements is false regarding rescission : (a) Rescission can be made through mutual agreement. (b) When one party makes a default in performance, the other party can rescind the

contract. (c) In case of voidable contract, the aggrieved party can cancel the contract (d) None of the above 77 Contingent contract is always : (a) Valid (b) Void (c) Voidable (d) Illegal 78 ‘A’ delivered goods to B’s warehouse by mistake. B’ used the goods. A’ asks B’ for the

price of the goods. This is : (a) Void Contract (b) Quasi Contract (c) Contingent contract (d) None of these 79 Under the sale of goods Act, 1930 property means : (a) Transfer of possession (b) Ownership (c) Delivery of goods (d) All of these 80 Breach of Warranty gives rise to : (a) Claim damages (b) Rejection of goods (c) Repudiation of contract (d) None of these 81 ‘P’ wants to sell his car, so he appoints ‘Q’ an auctioneer as his agent to sell car. ‘R’

made highest bid at the time of fall of hammer. ‘Q’ says to R for signing of cheque otherwise ownership shall not be transferred to him. ‘R’ sings the cheque which subsequently dishonored . In this case the ownership

(a) Is transferred with fall of hammer (b) Is not transferred as cheque is dishonored (c) Is transferred if ‘R’ sings another cheque (d) None of the above

82 Risk follows from seller to buyer when : (a) Possession of goods is given (b) Buyer paid the price (c) Ownership passes to the Buyer (d) All of the above 83 If there is a contract for sale of specific goods under deliverable state, the ownership

will passes : (a) When goods are delivered t the buyer (b) When payment is done (c) When contract is made (d) None of these 84 Bill of lading is issued by: (a) Shipping Company (b) Transporter (c) Railway Administration (d) Mercantile agent 85 Which of the following is not a mode of delivery : (a) Constructive (b) Structured (c) Actual (d) Symbolic 86 An unpaid seller has rights against : (a) On goods (b) On buyer (c) on both goods and buyer (d) None of these 87 When goods are delivered to the buyer on approval or on sale or return basis, the

property in the goods transferred to the buyer when : (a) The buyer retains the goods beyond stipulated time (b) The buyer signifies his approval (c) The buyer does any other act adopting the transaction (d) All of these 88 ‘P’ for sale of a property appoints ‘Q’ as a mediator with a commission of ` 20,000. ‘Q’

found the customer ‘R’ who paid ` 50,000 as an advance to ‘Q’. Later ‘P’ refuses to sell the property. Can ‘R’ claim advance back from ‘Q’ :

(a) Yes ‘R’ can claim his amount from ‘Q’ (b) No ‘R’ cannot claim any amount from ‘Q’ (c) Whole the contract is void (d) None of these 89 ‘P’ sold 100 refrigerators to ‘Q’ They are kept in the warehouse. The seller (P) told to

the warehouse keeper to keep the goods on behalf of ‘Q’. This is : (a) Structural (b) Constructive (c) Symbolic (d) Actual 90 Auction sale is completed on (a) When bid is made (b) Fall of hammer (c) When auction is started (d) None of the above 91 Where there is no provision for the duration of partnership, then it is known as : (a) Particular partnership (b) Partnership at will (c) Fixed term partnership (d) None of the above 92 Every partner is liable in the firm : (a) Jointly (b) Severally (c) Either Jointly or Severally (d) Both Jointly & Severally

93 A minor Joined for benefits of partnership has a right to : (a) Share the profits (b) Inspect the boos of firm (c) Sue for his share of profits (d) All of the above 94 The partnership will be compulsorily dissolved in case of : (a) All partners become insolvent (b) Death of a partner (c) Retirement of a partner (d) Admission of a partner 95 In the absence of any agreement, partners will share the profits in : (a) Capital ratio (b) As per their convenience (c) Equal Ratio (d) All of the above 96 A, B, C are active partners in the firm. ‘A’ retires without giving public notice of his

retirement. ‘B’ and ‘C’ carries on the business of the firm, and incurs liability. In this case :

(a) ‘A’ is also liable (b) Only ‘B’ & ‘C’ are liable (c) Firm will be deemed to be dissolved (d) Only ‘A’ is liable 97 In unregistered firm, a partner can sue for : (a) Goodwill (b) Share in Profits (c) Dissolution of the firm (d) None of the above 98 Which of the following statements is false : (a) A partner who takes fixed salary in lieu of share in profits may be a partner. (b) A partner who expresses (or) by his action intimates others that he is a partner may

be partner. (c) It is essential to have agreement to share profits and losses. (d) A partner who does not participate in management has no liabilities. 99 The partner of a firm agrees to share profits with an outsider but no other rights of

firm. Such outsider is called : (a) Nominal partner (b) Dormant partner (c) Sub-partner (d) Partner in profits only 100 Sanju and Manju are tailors. Manju takes all the profits and gives wages to Sanju. The

relationship between Sanju and Manju is : (a) Partner (b) Joint Owners (c) Master & Servant (d) Agent & Principal

CPT – December 2017 Question Paper (Compiled By :- VSI, Jaipur. Based on Memory) Marks 100 Time : 2 Hours

Session 2nd

Part A – General Economics

01. “Science requires art; art requires science”, who said this statement? (a) Keynes, (b) Cossa (c) Robbins (d) Pigou

02. The producer’s demand for a factor of production is governed by the …… of that factor. (a) Price (b) Marginal Productivity (c) Availability (d) Profitability

03. Demand for a commodity refers to………. (a) Amount of quantity demanded at a certain price during any particular period of

time (b) Desiree for the commodity (c) Quantity demanded of that commodity (d) Need for the commodity

04. What is the reason for the downward slope of demand curve towards right?

(a) Marginal Utility of the commodity decreases (b) Substitution effect when price of commodity decreases (c) Income effect when price of commodity decreases (d) All of the above

05. If the price of the petrol increases, the demand for the automobiles decreases, then

the petrol and automobiles are? (a) Perfect substitutes (b) Substitutes (c) Perfect Complementary (d) Complementary

06. A college of bachelor degree raised their fees by Rs. 500 in order to increase their

total revenues. But actually their total revenue had fallen. Then the demand for bachelor degree is…… (a) Relatively elastic (b) Relatively in elastic (c) Unit elastic (d) Perfectly elastic

07. Demand for electricity is elastic because: (a) It has alternative uses (b) It has number of close substitutes (c) It is very expensive (d) Its supply is erratic

08. The demand of commodity for which a consumer spends more percentage of his

income is (a) More elastic (b) Less elastic (c) Unity (d) Perfectly elastic

09. The supply of a good refers to: (a) Actual production of the goods (b) Total existing stock of the goods (c) Stock available for sale (d) Amount of the good offered for sale at a particular price per unit of time

10. Consumer surplus can’t be measured in terms of money because: (i) Marginal utility of money changes as purchases are made (ii) The stock of money with the consumer decreases (iii) Income of the consumer changes (iv) Price of the product changes (a) i & ii (b) ii & iii (c) iii & iv (d) i & iv

11. In case of necessaries, the consumes surplus is (a) Zero (b) One (c) Infinity (d) Maximum

12. The consumer is in equilibrium when the following condition is satisfied:

(a) = (b) =

(c) = (d) =

13. Internal & external economics of scale gives birth to:

(a) Constant returns to scale (b) Increasing returns to scale (c) Decreasing returns to scale (d) All of the above

14. Creation of utilities in terms of goods & services is called as: (a) Marginal utility (b) Total Utility (c) Production (d) Distribution

15. __________is the produced means of production. (a) Income (b) Capital (c) Money (d) Profit

16. In which of the following markets there are no restrictions on the transactions: (a) Unregulated markets (b) Regulated markets

(c) Spot market (d) Future market

17. Assume that consumer’s income and number of sellers in market for goods both falls. Based on this information we can conclude:

(a) Price will decrease (b) Price will increase (c) Quantity will increase (d) Quantity will decrease

18. From the following details, find out the average variable cost of 5 units :

Output 0 1 2 3 4 5 Total Cost 1500 2000 2500 3000 4000 6000

(a) Rs. 400 (b) Rs. 900

(c) Rs. 800 (d) Rs. 600

19. In short run, when output of a firm increases, its average fixed cost: (a) Remains constant (b) Decreases

(c) Increases (d) First decreases then increases

20. 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

21. Which of the following is an example of an economic cost: (a) Interest paid to the bank on the short term loan taken

(b) Cost incurred on the purchase of raw materials. (c) Wages paid to labourers (d) All of these

22. Monopoly would usually generate ____ when compared to perfect competition market:

(a) Higher quantity at higher price (b) Lower quantity at lower price (c) Higher quantity at lower price (d) Lower quantity at higher price

23. Among the following markets which has high control over the price: (a) Imperfect competition (b) Perfect competition

(c) Both (a) & (b) (d) Monopoly

24. Which of the following is a feature of under developed economy : (a) Service sector occupies large proportion (b) Dependence of foreign aid is absent

(c) Income inequalities are wide spread (d) Favorable balance of payments

25. NSSO stands for : (a) National student Survey office (b) National student securities office

(c) National sample survey office (d) National statistical securities office

26. India has a poverty index of ___ according to human development report (2010). (a) 0.283 (b) 0.267

(c) 0.297 (d) 0.381

27. Which five year plan is also known as ‘Gadgil yojana’ : (a) 2nd Five year plan (b) 3rd Five year plan

(c) 4th Five year plan (d) 5th Five year plan

28. _______ is a national waste of human energy. (a) Voluntary Employment (b) Fractional Employment

(c) Casual Employment (d) Structural Employment

29. India’s network is the second largest network in the world with the tele density of ____ %

(a) 75.23 (b) 87.66 (c) 67.34 (d) 65.28

30. NLM was recast into ____ in 2009 (a) Technology mission (b) Education for all

(c) Saakshar Bharat (d) Rashtriya uchataar Shiksha Abhiyan

31. Right of children to free and compulsory education Act (RTE Act ) 2009 has made free education for all children between the age of ___ a fundamental right.

(a) 5 and 14 years (b) 6 and 14 years (c) 7 and 14 years (d) 8 and 14 years

32. In which year the Government of India constituted a TRC (Tax Reforms Committee) (a) 1990 (b) 1991

(c) 1988 (d) 1966

33. Which of the following is correct: (a) Fiscal deficit – borrowing & other liabilities gives to Budget deficit (b) Budget deficit – borrowing & other liabilities gives to fiscal deficit

(c) Budget deficit + fiscal deficit give to borrowing and other liabilities. (d) None of the above

34. Which of the following is incorrect (a) Sum of budget deficit minus borrowings of loans & other liabilities gives fiscal

deficit (b) If total receipts equals total expenditure, it is called Balanced Budget

(c) If total receipts are greater than total expenditure, it is called Surplus Budget (d) Budget deficit is the difference between total receipts and total expenditure 35. Important tools of privatization are : (a) Leasing & contracting (b) Franchising, leasing & contracting

(c) Franchising, leasing, contracting & divesture (d) Franchising, leasing, contracting, selling & divesture.

36. GATT was replaced by WTO in the year : (a) 1st January, 1995 (b) 1st January, 1991

(c) 1st April, 1995 (d) 1st May, 1995

37. Which of the following is not a function of IMF (a) It provides medium term and long term loans to its member countries (b) It provides machinery for the orderly adjustment of exchanges rates

(c) It is a sort of lending institution in foreign exchange.. (d) It monitors economic and financial development of the member countries 38. Which of the following bank is also known as international Bank for Reconstruction

and Development : (a) World Bank (b) Asian Development Bank

(c) RBI (d) Central Bank

39. Fiscal policy affects balance of payments by: (a) Affecting capital account (b) Affecting current account (c) Affecting both capital & Current account (d) None of the above

40. Which measures has been taken in India to promote Globalization (a) Import Liberalization (b) Convertibility of rupee

(c) Encouragement to foreign investment (d) All of the above

41. Which of the following is a best Indicator of economic development : (a) Agriculture (b) Transport

(c) Per capita income (d) Gross domestic production

42. The national income of India is estimated by the : (a) NCAER (b) Indian Statistical Institute

(c) Planning Commission (d) Central Statistical Office

43. Pensions earned by retired persons are excluded in the calculation of : (a) National Income (b) Net National Product

(c) National Product (d) GDP

44. Which of the following statement is false? (a) During inflation, lenders suffer loss and borrowers benefits out. (b) During inflation, nominal (face) value of wages decreases while real value of

wages increases (c) When money supply increases it leads to inflation in the economy

(d) During inflation, aggregate demand is excess and aggregate supply is relatively less and purchasing capacity of consumer is low.

45. Fiscal policy is concerned with:

(a) Non-banking, financial institution (b) Money and banking (c) Government expenditure, taxation and borrowings

(d) None of these 46. During the inflation to control the credit RBI must ______________ :

(a) Increase CRR and decrease bank rate (b) Decrease CRR and increase bank rate (c) Increase CRR and increase bank rate (d) Decrease CRR and decrease bank rate

47. Monetary policy in India is also called by the name of:

(a) RBI’s policy on money & currency (b) Central Bank’s economic policy (c) Credit policy of RBI (d) RBI’s policy on money matters

48. The capital consumed by an economy or a firm in the production process is known as: (a) Capital loss (b) Production Cost (c) Death-weight loss (d) Depreciation

49 Monetary policy in India is implemented by ____________ :

(a) SBI (b) RBI (c) Ministry of finance (d) Planning commission

50 Which of the following is a function of commercial bank:

(a) Advisor to State Government (b) Creation of credit (c) Publication of data pertaining to money (d) Credit control

Part B - Quantitative Aptitude

51. The ratio of the number of five rupee coins to number of ten rupee coins is 8 : 15. If the total value of five rupee coins is 360, then the no. of ten rupee coins is __________ :

(a) 72 (b) 60 (c) 150 (d) 135

52. If , , , are in proportion then x =

(a) (b)

(c) (d)

53. If u5x = v5y = w5z and u2 = vw then xy + zx – 2yz = __________: (a) 0 (b) 1 (c) 2 (d) None of these

54. If log3 [log4 (log2x)] = 0 then X = (a) 4 (b) 8 (c) 16 (d) 32

55. If log = (logx + logy) then x2 + y2 = ___________

(a) 6xy (b) 2xy (c) 3x2y2 (d) 4x2y2

56. If the sum of two numbers is 13 and the sum of their squares is 85 then the numbers are:

(a) 6, 7 (b) 4, 9 (c) 10, 3 (d) 5, 8

57. The difference between the roots of the equation x2 – 7x – 9 = 0 is ________: (a) 7 (b)

(c) 9 (d) 2

58. The roots of the cubic equation x3 + 7x2 – 21x – 27 = 0: (a) -1, 3, 9 (b) 1, -3, 9 (c) -1, 3, -9 (d) -1, -3, 9

59. The line 3x + 2y = 6 intersects the line 3x – y = 12 in _______________ quadrant: (a) 1st (b) 2nd (c) 3rd (d) 4th 60. If the line joining the points (6, 12), (x, 24) is perpendicular to line joining the points

(-2, 6), (10,8). Then value of X is _________________: (a) 4 (b) -4 (c) 1 (d) None of these

61. If the compound interest on a sum for two year at the rate 5% p.a. is ` 512.50 , then

the principle is __________: (a) 4,000 (b) 3,000 (c) 5,000 (d) None of these

62. Find effective rate of interest corresponding to the nominal rate of interest 7% compounded monthly is__________:

(a) 7.26% (b) 7.22% (c) 7.02% (d) 7.20

63. if nP13 : (n+1)P12 = 3 : 4 then ‘n’ is __________:

(a) 13 (b) 15 (c) 18 (d) 31

64. In how many ways that 3 commerce books, 3 computer books and 5 economics books be arranged along a row, so that books of same subjects are come together is____ :

(a) 29,950 (b) 25,940 (c) 25,920 (d) None of these

65. Find the sum of all natural numbers between 100 and 1000 which are divisible by 11 is :

(a) 44,550 (b) 66,770 (c) 55,440 (d) 33,440

66. In a class of 35 students, 16 students play foot ball and 24 students play cricket. Assume that each one play atleast one game, then number of students who play both the games is _______________:

(a) 5 (b) 11 (c) 12 (d) 17

67. if f (x)= = then f [ f ] = _________________ :

(a) (b)

(c) (d)

68. = __________________ :

(a) 2 / 3 (b) 1 / 2 (c) 3 / 4 (d) None of these

69. = __________________ :

(a) 0 (b) 1 (c) 2 (d) 7

70. If y = 1 + + + + ………………………… then = _____________ :

(a) x (b) y (c) 1 (d) 0

71. If x = a.t2 and y = 2at then = ________ :

(a) 2 (b) 4 (c) 1/2 (d) ¼

72. If xy = ex-y then = ________ :

(a) (b)

(c) (d) None of these

73. If y = log xx then = ________ :

(a) log (ex) (b) log (e/x)

(c) log (x/e) (d) 1 74. *f(x) + f ’ (x)+ dx = :

(a) ex . f(x) + c (b) ex . f ‘(x) + c

(c) + c (d) ex . + c

75. .dx = ____________

(a) 2. +c (b) + c

(c) + c (d) None of these

76. Frequency density corresponding to a class interval is the ratio of __________: (a) Class frequency to the class length (b) Class frequency to the total frequency (c) Class length to the class frequency (d) Class frequency to the cumulative frequency 77. Stub of a table is the: (a) Right part of the table describing the columns (b) Left part to the table describing the columns (c) Right part of the table describing the row (d) Left part of the table describing the rows 78. Mean of 7, 9, 12, x, 4, 11 & 5 is 9. Find the missing observation: (a) 13 (b) 15 (c) 12 (d) None of these

79. If all the frequencies are equal than which will doesn’t exist: (a) Mean (b) Median (c) Mode (d) None of these 80. ____________ is the reciprocal of the AM of reciprocal of observations: (a) HM (b) GM (c) Both (d) None of these 81. Mean deviation is least when deviations are taken from: (a) Mean (b) Median (c) Mode (d) None of these 82. If r = 0.6 then the coefficient of non-determination is: (a) 0.4 (b) -0.6 (c) 0.36 (d) 0.64 83. If there is a constant increase in the series then the obtained graph is: (a) Convex (b) Concave (c) Parabola (d) Straight Line from left to right 84. The correlation coefficient is the _____________ of the two regression coefficients byx and

bxy: (a) AM (b) GM (c) HM (d) None of these 85. Regression coefficients are independent of ___________: (a) Change of origin (b) Change of scale (c) Both (a) and (b) (d) None of these 86. 5y = 9x – 22 & 20x = 9y + 350 are two regression lines. Find the correlation

coefficient between x & y: (a) 0.9 (b) 0.1 (c) -0.9 (d) -0.1

87. For the events A & B if P (A)= , P(B)= and P(AB)= then P =

(a) 1 / 2 (b) 1 / 6 (c) 2 / 3 (d) 3 / 4

88. If A & B are two mutually exclusive events such that P (A B ) = , P (A) = , then

P (B) : (a) 4 / 15 (b) 4 / 9 (c) 5 / 9 (d) 7 / 15 89. If a brother and a sister are applied for 2 vacancies in the same post. The probability

that brother will select is 1/7 and that of sister is 1/5, then the probability that (i) Both will select (ii) Only one will select, (iii) None of them will select :

(a) , , (b) , ,

(c) , , (d) , ,

90. The distribution of demand is as follows: Demand 5 6 7 8 9 10 Probability 0.05 0.1 0.3 0.4 0.1 0.05

The mean is given by (a) 7.55 (b) 7.85 (c) 1.25 (d) 8.35 91. In ___________ distribution, mean = variance: (a) Binomial (b) Poisson (c) Normal (d) None of these 92. An example of a bi-parametric discrete probability distribution is: (a) Binomial distribution (b) Poisson distribution (c) Normal distribution (d) Both (a) & (b) 93. In normal distribution 95% observations lies between _________ & __________: (a) (µ - 2 , µ + 2 ) (b) (µ - 3 , µ + 3 ) (c) (µ - 1.96 , µ + 1.96 ) (d) (µ - 2.58 , µ + 2.58 ) 94. Sampling error is ____________ proportional to the square root of the number of items in

the sample: (a) Inversely (b) Directly (c) Equally (d) None of these 95. Parameter is a characteristic of: (a) Population (b) Sample (c) Both (a) & (b) (d) (a) or (b) 96. Sampling frame is: (a) List of sampling units in the population (b) List of voters (c) List of Random Numbers (d) None of these 97. For knowing consumers price index number we want to collect data from: (a) Retail shop prices (b) Wholesale shop prices (c) Fair prices (d) Government depots 98. The circular test is an extension of: (a) The time reversal test (b) The factor reversal test (c) The unit test (d) None of these 99. Fisher’s ideal index number is: (a) The arithmetic mean of Laspeyre’s and Passsche’s index (b) The median of Laspeyre’s and Passche’s index (c) The mode of Laspeyre’s and Passche’s index (d) None of these 100. Price relative is equal to :

(a) x 100 (b) x 100

(c) Price in the given year x 100 (d) Price in the base year x 100

Part A

1 C 21 A 41 B 61 D 81 A

2 D 22 D 42 B 62 D 82 C

3 C 23 D 43 C 63 B 83 C

4 B 24 A 44 B 64 D 84 A

5 C 25 A 45 B 65 C 85 B

6 D 26 C 46 C 66 B 86 C

7 D 27 B 47 A 67 C 87 D

8 D 28 A 48 D 68 B 88 A

9 C 29 A 49 A 69 B 89 B

10 B 30 C 50 D 70 C 90 B

11 B 31 D 51 D 71 B 91 B

12 A 32 B 52 C 72 C 92 D

13 B 33 A 53 C 73 C 93 A

14 D 34 B 54 A 74 B 94 A

15 C 35 A 55 A 75 A 95 C

16 B 36 B 56 D 76 D 96 A

17 C 37 A 57 C 77 A 97 C

18 A 38 C 58 D 78 B 98 D

19 C 39 B 59 D 79 B 99 C

20 D 40 A 60 B 80 A 100 C

Part B

1 B 21 D 41 C 61 C 81 B

2 A 22 D 42 D 62 B 82 D

3 A 23 D 43 A 63 B 83 D

4 D 24 C 44 B 64 C 84 B

5 D 25 C 45 C 65 A 85 A

6 A 26 A 46 C 66 A 86 A

7 A 27 C 47 C 67 A 87 D

8 A 28 A 48 D 68 A 88 A

9 D 29 A 49 B 69 C 89 A

10 A 30 C 50 B 70 B 90 A

11 C 31 B 51 D 71 C 91 B

12 C 32 B 52 A 72 C 92 A

13 B 33 A 53 A 73 A 93 C

14 C 34 A 54 C 74 A 94 A

15 B 35 C 55 A 75 C 95 A

16 A 36 A 56 A 76 A 96 A

17 D 37 A 57 B 77 D 97 A

18 B 38 A 58 C 78 B 98 A

19 B 39 C 59 D 79 C 99 D

20 D 40 D 60 A 80 A 100 A