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MOCK TEST ON CPT

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- Elasticity Estimates
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MARKS : 100

SECTION I GENERAL ECONOMICS

101. ______ theory successfully explained the cause of large-scale unemployment in the 1930s

and formulated effective policy prescriptions.

(a) Modern () !lassical (c) "eynesian (d) #eo-classical

102. $hich of the follo%ing statements regarding elasticity of demand is true &

(a) 'lasticity can e positive or negative () 'lasticity al%ays has negative value

(c) 'lasticity al%ays has a positive value (d) 'lasticity can never e (ero

103. )n %hich of the follo%ing type of product* is the elasticity of supply lo%est &

(a) #ecessities () +uxury goods

(c) ,erishale goods (d) ,erfect sustitutes.

104. -rea.even point for a firm occurs %here

(a) total revenue / total cost () total revenue 0 total cost

(c) total revenue 1 total cost (d) none of the aove

105. $hen the production increases* the average fixed cost %ill decrease in

(a) long period () short period

(c)2ny situation (d) none of these

106. $hich of the follo%ing types of competition is 3ust a theoretical economic concept &

(a) Monopoly () 4ligopoly

(c) ,erfect competition (d) Monopolistic competition

107. )ndian economy is defined as developing economy ecause

(a) most of the people depend on agriculture

() industries have not een spreading rapidly

(c) laour is aundant and capital is scarce

(d) per capita income though small in relation to developed countries is slo%ly increasing

108. Mahalanois model stressed upon the estalishment of

(a) consumer goods industries. () export oriented industries.

(c) agro-ased industries. (d) capital and asic goods industries.

109. $hen poverty is ta.en in relative term and is related to the distriution of income or

consumption expenditure it is called

(a) +o% line ,overty () 2solute ,overty

(c) 5elative ,overty (d) #one

1

MOCK TEST

110. 2ccording to current %ee.ly status measure a person is said to e employed for the %ee.

even if he is employed only for a day during the %ee..

(a) 6rue () 7alse (c) ,artly true (d) none

111. $hich one of the follo%ing statements* aout the )ndian 5ail%ays is correct&

(a) )t is largest rail%ay system in the %orld

() )t is second largest rail%ay system in the %orld

(c) )t is third largest rail%ay system in the %orld

(d) )t is fourth largest rail%ay system in the %orld

112. 6he sources of finance availale to the government may e roadly classified into

(a) domestic udgetary sources () foreign assistance

(c) deficit financing (d) all of the aove

113. 8o% should the government respond %hen the economy is facing a depression&

(a) )ncrease pulic expenditure () 5educe pulic expenditure

(c) )ncrease direct tax (d) )ncrease indirect tax

114. -alance of payment %or.s on

(a) 9ingle entry system () :oule entry system

(c) !ompound entry system (d) #one of these

115. )ndia;s ,olicy in respect of foreign multinational companies has een

(a) 4f discouraging

() 4f encouraging them in )ndia %ithout any preconditions

(c) 4f not interfering

(d) 4f %elcome them into )ndia %ith greater participation of )ndian capital.

116. <loali(ation includes

(a) 7ree trade %ith less restriction on import and exports

() 7ree flo% of technology

(c) 7ree flo% of capital

(d) all of the aove

117. 100 percent privati(ation has ta.en place in )ndia of

(a) !M! +imited () Maruti =dyog limited

(c) !entaur 8otel (d) >idesh 9anchar #igam +imited

118. Money is most li?uid of all the assets ecause

(a) )t is readily convertile into other assets () )t can e easily stored

(c) )t gives income to the holder (d) )t has no carrying cost

119. 6he type of note issue system follo%ed in )ndia is the

(a) maximum fiduciary system () minimum reserve system

(c) proportional fiduciary system (d) fixed fiduciary system

120. !ommercial an.s increase their assets primarily y

(a) using their cash reserves to purchase assets

2

() selling their deposits at the central an. for government securities

(c) decreasing their outstanding loans to usiness and individuals and investing securities

(d) issuing claims against themselves.

121. 6he an.s are re?uired to maintain a certain ratio et%een their cash in hand and total

assets* this is called@

(a) :+5 (:ental +i?uidity 5eserve) () 9+5 (9tatutory* +i?uidity 5atio)

(c) 9-5 ( 9tatutory -and 5atio) (d) !-5 (!entral -an. 5eserve)

122. 2 system of note issue in %hich a fixed amount of notes is issued y the central an.

against reserves of government securities is called.

(a) simple deposit system () fixed fiduciary system

(c) proportional system (d) minimum reserve system

123. 2 system of note issue in %hich the central an. is authori(ed to issue notes upto any

extent ut it must .eep a statutory minimum reserve of gold and foreign securities* is .no%n

as

(a) fixed fiduciary system () maximum fiduciary system

(c) proportional reserve system (d) minimum reserve system

124. Money is

(a) constant in purchasing po%er () acceptale only %here it has intrinsic value

(c) the most li?uid of all assets (d) all of the aove

125. AMoney is %hat money doesB $ho among the follo%ing gave the definition of money &

(a) !ro%ther () 'ngine (c) -ustein (d) %al.er

126. 'xport susidies are provided to )ndian exporter

(a) :irectly () )ndirectly (c) !ontinuously (d) !onditionally

127. ,ulic det is considered urdensome %hen

(a) )t has a very lo% rate of interest

() )t is from a foreign an.

(c) )t is used for unproductive activities

(d) )t has very long repayment schedule

128. 6he income of the government through all its sources is called

(a) pulic expenditure () alanced udget

(c) unalanced udget (d) none of these

129. :eflation may e defined as

(a) recovery from usiness cycle operation

() deflation delierately underta.en to relieve an inflation

(c) inflation delierately underta.en to relieve a depression

(d) none of aove

3

130. 6he government policy to chec. inflation has een

(a) pulic distriution system

() action against hoarders smugglers and lac. mar.eters

(c) fiscal and monetary measure to increase the supply of essential goods

(d) all of the aove

131. )n the sectoral allocation of financial outlay in the pulic sector* the large allocation has een

made for

(a) agriculture () industries and minerals (c) energy (d) transport

132. Ca%ahar 5o(gar Do3na for rural employment %as started in year

(a) 19E9 () 19F9 (c) 19G9 (d) 19GH

133. 6he measure of poverty line is said to measure the distriution of %elfare rather than merely

the distriution of %ealth in a society ecause

(a) )t measures the energy re?uirements of a house holds

() )t defines poverty in terms of a minimum level of living

(c) it see.s to measures the income shortfall of each person in the poverty line

(d) )t prescries a universal standard of %ell-eing applicale to the %orld over

134. 6he percent decadal gro%th rate of population during 1991-I001

(a) II.GFJ () I1.3J (c) I0.93J (d) 19.9HJ

135. !'#>26 is simple and transparent ecause it is levied on the

(a) physical chec. asis () account asis

(c) physical and account asis (d) none of the aove

136. $hich of the follo%ing is #46 correct&

(a) 6he incidence of direct tax rests upon the person %ho ears its impact

() :irect taxes are not shiftale.

(c) )ndirect taxes are not shiftale

(d) 6he incidence of indirect taxes is passed on the others

137. 6he gap et%een domestic product and national product is significant for a country %ith

(a) small foreign investment () huge foreign investment

(c) practically no foreign investment (d) none of these

138. )n calculating <#, %hich of the follo%ing should e excluded&

(a) 5ental incomes () )nterest payment

(c) :ividends (d) <overnment transfer payments

139. $hich one of the follo%ing measures can e ta.en to moderni(e agricultural sector&

(a) :evelopment of transport system

() :evelopment of rural industries

(c) 9ocial %elfare service

(d) 2ll of the aove

4

140. :isguised unemployment meansK

(a) ,eople are underemployed

() ,eople are employed ut have no %or.

(c) ,eople are employed ut their productivity is nil or negative

(d) #one of these

141. 2verage revenue curve should e .in.ed in

(a) duopoly () Monopoly (c) !ollusive oligopoly (d) non-collusive oligopoly

142. $hich of the follo%ing features is not associated %ith a monopoly mar.et structure&

(a) 6here is only one seller in the mar.et

() 6here are no close sustitutes for the product.

(c) 6here are arriers to entry

(d) 6here are close compliment for the product.

143. $hich of the follo%ing is not a fixed cost

(a) ,ayment of interest on orro%ed capital

() !harges for fuel and electricity

(c) :epreciation charges on e?uipment and uilding

(d) !ontractual rent for e?uipment or uilding

144. Modern firm face long run technology changes L hence +2! curve is

(a) 8ori(ontal () + shaped (c) >ertical (d) #one of the aove

145. $hich of the follo%ing is asolutely correct&

(a) 6he la% of diminishing returns depends on the assumption that the state of technical

.no%ledge is unchanged

() 6he la% of increasing returns depends on the assumption that the state of technical

.no%ledge is unchanged

(c) 6he la% of constant returns depends on the condition that the state of technical

.no%ledge is unchanged

(d) 6he la% of diminishing returns depends on the assumption that total output is constant

146. $hich of the follo%ing statement is incorrect&

(a) +and is a free gift of nature

() +and is passive factor of production

(c) 6he ?uantity of land is unlimited

(d) Modern economists descried the concept of land element

147. $hat does the up%ard slope of the supply curve depict&

(a) )ncrease in price reduces supply

() :ecrease in price increases supply

(c) )ncrease in price increases supply

(d) 9upply remains constant irrespective of change in price

148. $hich of the follo%ing utility approaches suggests that utility can e measured and

?uantified&

(a) cardinal

() 4rdinal

(c) -oth cardinal and ordinal

(d) #either of the approaches ma.es any such suggestion.

5

149. 2 movement along given indifference curve is .no%n as

(a) income effect () ,rice effect (c) 9ustitution effect (d) none of these

150. 6he la% of demand is the one %hich

(a) can e completely discarded

() has numerous exemptions and therefore not helpful

(c) !annot e verified and therefore unrealistic

(d) )s of fundamental importance and leads to road conclusions.

Correct Qe!t"o#! $$$$$$$$$$$$$$$$ 1 % $$$$$$$$$$$$$$$

&ro#' Qe!t"o#! $$$$$$$$$$$$$$$$$ (0.25 % $$$$$$$$$$$$$$$

N.A. Qe!t"o#! $$$$$$$$$$$$$$$$$ 0 % $$$$$$$$$$$$$$$

$$$$$$$$$$$$$$$) 50

6

SECTION II( Q*ANTITATI+E A,TIT*-E

151. 6he solution of the e?uation K Ix M 2 1 3x N O 2 3 .

(a) ( ) 2 1 4 () ( ) 2 1 4 + (c) ( ) 2 1 3 (d) ( ) 2 1 3 +

152. 6he solution of the e?uation K

( ) ( )

9

2

2

1

9

1 2 2

=

+

z z

gives K

(a) ( 1 -1 () ( 1 1 (c) ( 1 I (d) none of these

153. :ivide IIO into three parts so that the second %ill e t%ice the first and the third %ill e t%ice

the second.

(a) 3I*GO*1IE () 30* GG* 1IE (c) 3I*GE*1IO (d) none of these

154. 8o% many %ords can e formed %ith the letters of the %ord P45)'#62+; so that 2 and '

al%ays occupy odd places.

(a) EHO0 () EGO0 (c) EOG0 (d) EHO0

155. )f

1

20 20

x 13

=

r r

P P * then r 1 QQQQ

(a) H () G (c) F (d) E

156. )n ho% many %ays you can ans%er one or more ?uestions out of G ?uestions each having an

alternative &

(a) G3 () GI (c) GO (d) none of these aove

157. )f the fifth term of a <.,. is E1 and the second term is IO* then the series is K

(a) O*1G* GO* Q.. () 1I*O*E*QQ. (c) 1G*IO* 3G* QQ.(d) none of these

158. 6he numer of terms to e ta.en so that 1 M I M O M E M %ill e E191 is K

(a) 10 () 13 (c) 1I (d) none of these

159. 6he next term of the series 32 , 18 , 8 , 2 * QQ is K

(a) 50 () 48 (c) 72 (d) OE

160. )n a to%n of I0*000 families it %as found that O0J families uy ne%spaper 2* I0J families

uy ne%spaper - and 10J families uy ne%spaper !* HJ families uy 2 and -* 3J uy -

and ! and OJ uy 2 and !. )f IJ families uy all the three ne%spapers* then the numer of

families %hich uy 2 only is K

(a) GG00 () G300 (c) HG00 (d) G00

161. )f f(x) 1 x M 3* g(x) 1 x

I

* then fog(x) is K

(a) x

I

M 3 () x

I

M x M 3 (c) (xM3)

I

(d) #one of these

162. )n a group of I0 children*E drin. tea ut not coffee and 13 li.e tea. 6he numer of children

drin.ing coffee ut not tea isK

(a) G () F (c) 1 (d) none of these

163. =

+

2

0

1 2 3 6

lim

x

x x x

x

7

(a) log G () log I x log 3 (c) 3 log I (d) none of these

164. 2 function f(x) defined in (0* 3) as follo%s K

f(x) 1 x

I

%hen 0 0 x 0 1

1 x %hen 1 x

1 (1RO) x

3

%hen I x 0 3

6hen f(x) at x 1 1 is K

(a) continuous () discontinuous (c) limit not defined (d) none of these

165. )f y 1 x(x-1) (x-I)* then

dx

dy

is K

(a) 3x

I

-Gx M I () NGx MI (c) 3x

I

MI (d) none of these

166.

( ) ( ) [ ] x f x f e

x

' +

.dx

(a) e

x

.f(x)Mc () e

x

f;(x) M c (c) e

x

f(x) (d) e

x

f;(x)

167. )f x

IR3

M y

IR3

1 a

IR3

* then dyRdx is K

(a) (-yRx)

1R3

() (yRx)

1R3

(c) (-xRy)

1R3

(d) none of these

168. )f x 1 log t and

t

y

1

= * then

2

2

dx

y d

is e?ual to

(a)

dx

dy

() -

dx

dy

(c) 0 (d) none of these

169. Ex

I

R(x

3

M I)

-3

dx is e?ual to

(a) NOR3(x

3

MI)

I

() NOR3(x

3

M I)

-I

M .

(c) OR3(x

3

M I)

I

M . (d) none of these

170.

=

+ + +

5 4 x x

dx

(a) (-IR3) S(xMO)

3RI

N (xMH)

3RI

T M . () (IR3) S(xMO)

3RI

M(xMH)

3RI

TM.

(c) (-IR3) S(xMO)

-1RI

-(xMH)

-1RI

M. (d) #one of these

171.

( )

( )

=

+

dx e

x

x

x

3

1

1

(a) e

x

R(xM1)

3

M c () e

x

(xM1)

I

Mc (c) e

x

R(xMI)

I

Mc (d) none of these

172.

dx

x

x

2 / 1

0

2

1

2

is K

(a) I - 3 () 2 3 (c) 3 2+ (d) none of these

173. 6he difference et%een simple interest and compound interest on a certain sum for 3 years

at HJ per annum is 5s.FG.IH. 6he sum is K

(a) 5s.E*000 () 5s.9*000 (c) 5s.10*000 (d) 5s. 11*000

174. 23ay intends to invest a sum of money %hich %ill amount to 5s.10*000 in 10 years at E per

cent compound interest* %hat amount should he invest &

8

(a) 5s.OG3O () 5s.OGHO (c) OGFO (d) 5s.OG9O

175. 6he rate at %hich a sum ecome four times of itself in 1H years at 9.). %ill e K

(a) 1HJ () %

2

1

17 (c) I0J (d) IHJ

176. $hat is the 8.M. of 1* U* 1R3* QQQ 1Rn &

(a) n () In (c)

( ) 1

2

+ n

(d)

2

) 1 (+ n n

177. 6he average salary of a group os uns.illed %or.ers is 5s.10*000 and that of a group of

s.illed %or.ers is 5s.1H*000. )f the comined salary is 5s.1I*000* them %hat is the

percentage of s.illed %or.ers &

(a) O0J () H0J (c) G0J (d) #one of these

178. )f the 2.M. and <.M. for 10 oservations are oth 1H* then the value of 8.M. is

(a) +ess than 1H () More than 1H

(c) 1H (d) !an not e determined

179. 6he mean of a set of oservations is

X

. )f each oservation is divided y

* 0* and then is increased y 10* then the mean of the ne% set is K

(a)

X

()

+10 X

(c)

+10 X

(d) 10 + X

180. !oefficient of variation is independent of the unit of measurement.

(a) true () false (c) oth (d) none of these

181. !oefficient of Vuartile :eviation is e?ual to

(a) (Vuartile deviation x 100) median.

() (Vuartile of 9tandard x 100) R mean

(c) (Vuartile deviation x 100) R mode

(d) #one of these

182. 6he mean and 9.:. of 1*I*3*O*H* G is K

(a)

12

35

,

2

7

() 3 ,

2

7

(c) 3* 3 (d) 3*

12

35

183. 6he M.:. of the numers K 10* 11* 1I* 13* QQQ..* 30 aout 2.M. is nearly

(a) O.O () G.1O (c) H.IO (d) 1I.O

9

184. 6he ran. correlation coefficient et%een the t%o series W and D*

W K F0 GH F1 GI HE G9 FE GO

D K 91 FG GH E3 90 GO HH OE

is K

(a) 0.I1 () -0.31 (c) 0.O1 (d) 0.H0

185. 6he coefficient of correlation et%een t%o variales x and y is 0.H@ their covariance is 1G and

9.:. of x is O* then the 9.:. of y is K

(a) O () E (c) 1G (d) GO

186. !ovariance (x* y) et%een x and y if x 1 1H* y 1 O0* xy 1 110* n 1 H is K

(a) II () -I (c) I (d) none of these

187. )f the correlation coefficient et%een t%o variales W and D is 0.O and the regression

coefficient of W and D is 0.I* then the regression coefficient of D on

W is K

(a) 0.O () 0.E (c) 0.E (d) #one of these

188. 6he regression e?uations of t%o variales W LD are as follo%s K 3x M ID N IG 1 0@

GW M D N 31 1 0. 6he coefficient of correlation et%een W and D is K

(a) N 0.O () -0.H (c) N 0.G (d) N 0.GH

189. )f the coefficient of non-determination is 0.H0I* then the value of r is K

(a) 0.G9 () 0.F1 (c) 0.F3 (d) 0.E1

190. 2 9imple random sample of si(e 1G is dra%n from a population %ith H0 memers. $hat is

the 9.'. of sample mean if the population variance is .no%n to e IH given that the sampling

is done %ith replacement &

(a) 1.IH () G.IH (c) 1.0O (d) 1.HG

191. )f a random sample of H00 oranges produces IH rotten oranges* then the estimate of 9.'. of

the proportion of rotten oranges in the sample is K

(a) 0.01 () 0.0H (c) 0.0IE (d) 0.0H93

192. 2 researcher %ishes to estimate the mean of a population y using sufficiently large sample.

6he proaility is 0.9H that the sample mean %ill not differ from the true mean y more than

IHJ of the standard deviation. 8o% large sample should e ta.en &

(a) HI () OI (c) GI (d) FI

193. )f 2 and - are t%o events such that ,(2 -) 1 HRG* ,(2 -) 1 1R3* ,(2) 1 IR3* then 2 and -

are

(a) dependent events () independent events

(c) mutually exclusive events (d) mutually exclusive and independent.

194. 6he proaility of getting a total score of F %hen t%o uniased dice are thro%n

simultaneously is K

(a)

36

7

()

36

29

(c)

6

1

(d)

6

5

10

195. 'vents 2* -* ! are mutually exclusive events such that ,(2) 1

3

1 3 + x

*

,(-)1

4

1 x

and ,(!) 1

4

2 1 x

. 6he set of possile values of x are in the interval K

(a)

2

1

,

3

1

()

3

2

,

3

1

(c)

3

13

,

3

1

(d) S0*1T

196. 2 salesman has a G0J chance of ma.ing a sale to each customer. 6he ehaviour of

successive customers is independent. )f t%o customers 2 and - enter* %hat proaility that

the salesman %ill ma.e a sale to 2 or - &

(a) 0.G3 () 0.EO (c) 0.9G (d) 0.FO

197. )n QQQQQdistriution* mean 1 variance

(a) -inomial () #ormal (c) ,oisson (d) #one of these

198. )f the chance that the vessel arrives safely at a part is 0.9* find the chance that out of H

vessels expected at least O%ill arrive safely.

(a) 0.9I () 0.EI (c) 0.FI (d) 0.GI

199. 7isher;s ideal price index

(a) is a +aspeyre;s index

() is a ,aasche;s index

(c) is a simple average index

(d) is a geometric average of a +aspeyre;s index and a ,aasche;s index

200. 6he condition for the 6ime 5eversal 6est to hold good %ith usual notations is K

(a) ,

01

x ,

1011

() ,

01

R ,

10

1 1 (c) ,

10

x ,

01

1 0 (d) ,

01

M ,

10

1 1

Correct Qe!t"o#! $$$$$$$$$$$$$$$$ 1 % $$$$$$$$$$$$$$$

&ro#' Qe!t"o#! $$$$$$$$$$$$$$$$$ (0.25 % $$$$$$$$$$$$$$$

N.A. Qe!t"o#! $$$$$$$$$$$$$$$$$ 0 % $$$$$$$$$$$$$$$

$$$$$$$$$$$$$$$) 50

TOTAL SCORE

SCORE

D

OUT OF

PAPER I

Accounts 60

Law 40

PAPER II

Economics 50

Maths 50

Total 200

11

12

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