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2011 Commerce UGC NTA NET JRF Solved Previous Year Paper December–2011 Paper–II

Commerce UGC NTA NET JRF Solved Previous Year Paper December–2011 Paper–II

1. By which Act, the government checks restrictive trade practices?
A. FEMA – 1999
B. Consumer Protection Act, 1986
C. Industrial Policy Act, 1991
D. None of the above
Ans : D

2. In which year the new Industrial Policy was announced?
A. 1997 B. 1951
C. 1991 D. 1998
Ans : C

3. The Narasimham Committee made separate recommendations for the reforms of :
A. Manufacturing sector
B. Banking sector
C. Agriculture sector
D. Insurance Sector
Ans : B

4. Assertion (A) : Disinvestment tends to arouse opposition from employees.
Reason (R) : It may increase the cost of Production.
A. Both (A) and (R) are true.
B. (A) is true, but (R) is false.
C. Both (A) and (R) are false.
D. (A) is false, but (R) is true.
Ans : B

5. Match the following :
Books Authors
(a) India and Economic Reforms (i) Bhagwati. J.
(b) Development planning : The Indian Experience (ii) Chakravarty. S.
(c) India : Economic and Development and Social Opportunity (iii) Drenz, J Amartya Sen
(d) Fiscal Policy of Underdeveloped countries. (iv) Chelliah, R.J.
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (ii) (iii) (iv) (i)
C. (iii) (iv) (ii) (i)
D. (i) (iv) (iii) (ii)
Ans : A

6. Which of the following accounting equations is not correct?
A. Assets –Liabilities = Equity
B. Assets –Equity = Liability
C. Assets + Liabilities = Equity
D. Liabilities + Equity =Assets
Ans : C

7. Which one of the following statements is correct?
A. Increases in liabilities are credits and decreases are debits.
B. Increases in assets are credits and decreases are debits.
C. Increases in capital are debits and decreases are credits.
D. Increases in expenses are credits and decreases are debits.
Ans : A

8. A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into partnership for 1/8 share and the new ratio between A and B is 4 : 3. The sacrificing ratio is
A. 1 : 1 B. 2 : 1
C. 4 : 1 D. 2 : 3
Ans : C

9. Arrange the following liabilities in the order of company balance sheet.
(i) Bank Overdraft
(ii) Bank Loan
(iii) Share Capital
(iv) Provision for Taxation
A. (i), (ii), (iii), (iv)
B. (iv), (iii), (ii), (i)
C. (iii), (ii), (i), (iv)
D. (iii), (ii), (iv), (i)
Ans : D

10. Intrinsic value of a share is given by :
A. Total net assets/No. of shares
B. Total assets/No. of shares
C. Share capital/No. of shares
D. Market capitalization/No. of shares
Ans : A

11. When demand curve is rectangular Hyperbola, the elasticity of demand will be :
A. Perfectly elastic
B. Unit elastic
C. Perfectly inelastic
D. Highly elastic
Ans : B

12. Opportunity cost is a term which describes :
A. A bargain price for a factor of production.
B. Cost related to an optimum level of production.
C. Average variable cost.
D. The cost of forgone opportunities.
Ans : D

13. Arrange the following books in order (year) in which they appeared.
(i) Economic Theory and Operations Analysis by W.J. Baumol.
(ii) An introduction to positive Economics by R.G. Lipsey.
(iii) Economics by P. Samuelson.
(iv) Managerial Economics by Joel Dean.
A. (i), (ii), (iii), (iv)
B. (iv), (iii), (i), (ii)
C. (ii), (iv), (i), (iii)
D. (iii), (iv), (ii), (i)
Ans : D

14. Marginal revenue is _____ at the quantity that generates maximum total revenue and negative beyond that point.
A. zero B. + 2
C. + 1 D. – 1
Ans : A

15. Assertion (A) : “Utility will be maximised when the marginal unit of expenditure in each direction brings the same increment of utility.” Reason (R) : A consumer will try to maximise his utility.
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.
Ans : A

16. In a predominantly illiterate area consisting of 10,000 population, data has to be collected from 10% of them. The appropriate technique for data collection would be :
A. Questionnaire
B. Schedule
C. Interview
D. All the above
Ans : C

17. In a unimodal and symmetric distribution, the relationship between averages is like this :
A. mean > median > mode
B. mean < median < mode
C. mean = median = mode
D. mean > median < mode
Ans : C

18. Given the following tests :
(i) ‘Z’-test (ii) ‘t’-test
(iii) ‘F’-test (iv) ‘χ’-test The concept of degrees of freedom is associated with :
A. (i) and (ii)
B. (ii) and (iii)
C. (iii) and (iv)
D. (ii), (iii) and (iv)
Ans : D

19. Which one of the following is not an accounting software?
A. Tally B. Miracle
C. Profit D. SPSS
Ans : D

20. E-marketing is :
A. Buying and selling of goods and services through internet.
B. Buying of goods through internet.
C. Selling of goods through internet.
D. All of the above.
Ans : D

21. Match the items in List-I with items in List-II.
List-I List-II
(a) Peter F. Druker (i) M.B.O.
(b) F.W.Taylor (ii) Scientific Management
(c) Henri J. Fayol (iii) Industrial Psychology
(d) Hugo Munsterberg (iv) Functional Theory
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (i) (ii) (iv) (iii)
C. (iv) (iii) (ii) (i)
D. (iii) (i) (iv) (ii)
Ans : B

22. The main advantage of functional organization is :
A. Simplicity
B. Specialisation
C. Experience
D. Authority
Ans : B

23. Which of the following is the most democratic form of organisation?
A. Line B. Line and Staff
C. Functional D. Committee
Ans : D

24. Plan made in the light of a competitor’s plan is known as :
A. Policy B. Procedure
C. Strategy D. Under-cover plan
Ans : C

25. A proposed organizational change may create …………… .
A. Emotional Turmoil & Tension
B. Problem of social displacement
C. Fear of unknown
D. All of the above
Ans : D

26. Match the following statements with their authors :
(a) “Marketing mix is a pack of four sets of variables, namely; product variables, price variables, promotion variables and place variables”. (i) Wheeler
(b) “The marketing mix is the the set of marketing tools the firm uses to pursue its marketing objectives in the target market.” (ii) Cundiff, Still & Govoni
(c) “Marketing is the mana- gerial process by which products are matched with markets and through which transfers of ownership are affected.” (iii) Mc Carthy
(d) “Marketing is concerned with all the resources and activities involved in the flow of goods and services from producer to consumer.” (iv) Philip Kotler
Codes :
(a) (b) (c) (d)
A. (ii) (iv) (i) (iii)
B. (i) (ii) (iv) (iii)
C. (iv) (iii) (i) (ii)
D. (iii) (iv) (ii) (i)
Ans : D

27. Which one of the following is not the mode of Direct Distribution system?
A. Multiple shops
B. Door to door selling
C. Broking agent
D. Direct mail order
Ans : C

28. Which one of the following is not matched correctly?
A. Sales Portfolio – Internal Sales Promotion
B. Merchandise Allowance – Dealer Promotion
C. Count and Recount of Stock – Consumer Promotion
D. Advertising – Market Promotion
Ans : C

29. Assertion (A) : “Advertising plays a vital role in selling products/services.” Reason (R) : “Sales promotion is incomplete without a good advertising plan.”
Codes :
A. (A) is correct, but (R) is false.
B. (A) is false, but (R) is correct.
C. Both (A) and (R) are correct.
D. Both (A) and (R) are false.
Ans : C

30. Which one of the following contains the three elements of service marketing triangle?
A. Management, Marketing Agency and Consumer.
B. Marketing Agency, Government and Consumer.
C. Management, Employees and Marketing Agency.
D. Management, Employees and Consumer.
Ans : D

31. Read the following statements :
(i) “The rate of return on investment increases with the shortage of working capital.”
(ii) “Net working capital is the excess of current assets over current liabilities.”
(iii) “Greater the size of the business unit, larger will be the requirement of working capital.”
(iv) “Working capital is also known as circulating capital.” Which one of the following consists of the correct statements?
A. (i), (ii) and (iii)
B. (ii), (iii) and (iv)
C. (iii), (iv) and (i)
D. (i), (ii) and (iv)
Ans : B

32. Match the following :
(a) Capital Budgeting (i) Time adjusted rate of return
(b) Profitability Index (ii) Irreversible
(c) Internal rate of return (iii) Benefit/cost
(d) Capital investment decisions (iv) Planning capital Expenditure
Codes :
(a) (b) (c) (d)
A. (iv) (iii) (ii) (i)
B. (i) (iv) (ii) (iii)
C. (iv) (iii) (i) (ii)
D. (ii) (i) (iii) (iv)
Ans : C

33. Which one of the following is correct?
(i) Liquidity ratios measure long term solvency of a concern.
(ii) Inventory is a part of liquid assets.
(iii) Rule of thumb for acid test ratio is 2 : 1.
(iv) The amount of gross assets is equal to net capital employed.
A. (i), (ii) and (iv)
B. (ii), (iii) and (iv)
C. (i), (ii), (iii) and (iv)
D. None of the above
Ans : D

34. According to which of the following, the firm’s market value is not affected by capital structure?
A. M-M Hypothesis
B. Net Income approach
C. The Traditional view
D. None of the above
Ans : A

35. Modigliani and Miller’s dividend policy of a firm is :
A. Relevant B. Irrelevant
C. Unrealistic D. None of the above
Ans : B

36. The concept of Quality circles is a brain child of :
A. Karou Ishikawa
B. Munchu
C. Japanese Union for Scientists & Engineers
D. None of the above
Ans : A

37. Performance appraisal is :
A. Morale boosting
B. Training and Development Activity
C. Job Analysis
D. None of the above
Ans : B

38. The mechanism to identify employee’s growth potentials is done through :
A. Job enrichment
B. Job evaluation
C. Assessment centre
D. Position Description
Ans : C

39. Statements :
(i) High morale always leads to high productivity.
(ii) High morale need not necessarily lead to high productivity.
A. (i) is correct, (ii) is incorrect.
B. (i) is incorrect, (ii) is correct.
C. Both are correct
D. Both are incorrect
Ans : B

40. Arrange the following in order :
(i) Promotion
(ii) Performance appraisal
(iii) Recruitment
(iv) Training and Development
A. (iii), (iv), (ii), (i)
B. (iii), (ii), (i), (iv)
C. (i), (ii), (iii), (iv)
D. (iii), (i), (ii), (iv)
Ans : A

41. Find out the odd one out of the following :
A. State Bank of India
B. Reserve Bank of India
C. Union Bank of India
D. Central Bank of India
Ans : B

42. SIDBI was set up in _____ as a wholly owned subsidiary of ______
A. 1985 – EXIM
B. 1969 – RRBS
C. 1975 – IFCI
D. 1990 – IDBI
Ans : D

43. The most important reason for an investor to prefer a Bank deposit is :
A. The credit worthiness of the Bank.
B. The Bank does not invest in the securities.
C. The Bank offers a guarantee.
D. All of the above.
Ans : D

44. Main objectives of CRR and SLR is to ensure :
(i) Liquidity position of Bank
(ii) Financial position of Bank.
(iii) Profit position of Bank
A. Only (i) is correct.
B. Only (ii) is correct.
C. Only (iii) is correct.
D. All are correct.
Ans : A

45. NABARD has taken over the entire functions of :
C. RPCD of RBI D. All of the above
Ans : D

46. Which of the following is the best example of Agreement between oligopolists?
Ans : B

47. Factor Endowment Theory of International Trade was propounded by :
A. David Ricardo
B. Bertil – Ohlin
C. J.S. Mill
D. C.P. Kindleberger
Ans : B

48. Assertion (A) : The British established and developed Indian Railways.
Reason (R) : The British are keenly interested in India’s economic development.
A. Both (A) and (R) true.
B. Both (A) and (R) are false.
C. (A) is true, but (R) is false.
D. (A) is false, but (R) is true.
Ans : C

49. Which of the following is also known as World Bank?
Ans : B

50. Special Economic Zones (SEZ) have been created first time in the :
A. EXIM Policy – 2000
B. EXIM Policy – 2005
C. Industrial Policy – 1956
D. Industrial Policy – 1991
Ans : A

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