(Paper) CA-CPT Previous Year Question Paper "December - 2013", Set - 2

(Paper) CA-CPT Previous Year Question Paper "December - 2013"

Session - 2

Part A – General Economics

1. What does “Price mechanism” exists.

a) Capitalist economy
b) Socialist economy
c) Both type of economies
d) None of the above

2. Socialist economy is also known as ____ economy

a) Mixed
b) Planned
c) Capitalist
d) None of the above

3. In a perfectly competitive markets , if MR is greater than MC then a firm should

a) Increase its production
b) Decrease its production
c) Increase in sales
d) Decrease in sales

4. When total utility is increases at a diminishing rate, then marginal utility is ______

a) Diminishing
b) Zero
c) Maximum
d) one

5. The cross elasticity of demand between two perfect substitutes will be

a) Zero
b) Infinity
c) Very high
d) Very low

6. The shape of IC for complementary goods is

a) Straight line
b) L- Shaped
c) Convex to the origin
d) Circular

7. Kinked demand curve is related to

a) Oligopoly
b) Monopsony
c) Monopoly
d) Monopolistic competition

8. In long-run a monopolist always earn ___ profits

a) Normal
b) Abnormal
c) Zero profit
d) Loss

9. The concept ‘Returns to scale’ is related with _

a) Very short period
b) Short period
c) Long period
d) None of the above

10. A Higher IC shows ______

a) A Higher level of satisfaction
b) A Higher level of Income
c) A Higher level of production
d) None of the above

11. Positive science only explains _____

a) What it is?
b) What ought to be?
c) What is right or wrong?
d) None of the above

12. In a Cobb – Douglas production function, two inputs are ____

a) Land and Labour
b) Capital and Labour
c) Capital and Entrepreneur
d) Entrepreneur and land

13. From which of the following the concept of consumer’s surplus has been derived

a) Law of diminishing marginal utility
b) Law of demand
c) Law of supply
d) Indifference curve analysis

14. The Price line / Budget line of a consumer is

a) Parallel to x-axis
b) Parallel to Y- axis
c) Straight line joining two axis
d) None of the above

15. The Demand for factors of production is ___ Demand

a) Fundamental
b) Derived
c) Market
d) Joint

16. Production function is

a) Purely technical relationship between input & output
b) Purely economic relationship between input & out put
c) Both (a) & (b)
d) None of these

17. Which statement among below is correct in reference to AFC?

a) Never becomes zero
b) Curve never touch x-axis
c) Curve never touch y-axis
d) All of these

18. Innovation theory of entrepreneur is propounded by

a) Prof knight
b) Schumpeter
c) Max weber
d) Peter Ducker

19. If a seller obtains Rs.3,000 after selling 50 units and Rs.3,100 after selling 52 units then MR will be

a) 59.62
b) 50.00
c) 60.00
d) 59.80

20. The Price of a tiffin box is Rs. 100 per unit and the quantity demanded in a market is 1,25,000 units . Company increased the price to Rs.125 per unit due to this increase in price quantity demanded decreases to 1,00,000 units. what will be price elasticity of demand ______

a) 1.25
b) 0.80
c) 1.00
d) None

21. Economics which is concerned with welfare propositions is called.

a) Socialistic economics
b) Capitalistic economics
c) Positive economics
d) Normative economics

22. Under which of the following forms of market structure does a firm has very considerable control over the price of its product?

a) Monopoly
b) Perfect competition
c) Monopolistic competition
d) Oligopoly

23. The price of a commodity decreases from 10 to 8 and the quantity demanded of it increases from 25 to 30 units .Then the coefficient of price elasticity will be _____

a) 1
b) -1
c) 1.5
d) -1.5

24. In which among the following systems the “Right to property” exists

a) Mixed
b) Capitalist
c) Socialist
d) Traditional

25. Objectives of price discrimination in international market is

a) To capture foreign markets
b) To dispose of surplus stock
c) To earn maximum profit
d) All of the above

26. What is the elasticity between midpoint & upper extreme point of a straight line continuous demand curve?

a) Infinite
b) Zero
c) >1
d) <1

27. Who is responsible for collecting & presenting statistics in India

a) ISI
b) CSO

28. Value added method is used to measure__

a) National Income
b) Domestic Income
c) Gross Income
d) Personal Income

29. Bad and doubtful debts of scheduled commercial banks are known as___

a) Non-performing Assets
b) Withdrawals of assets
c) Non-recoverable Assets
d) None of the above

30. Direct taxes are___ in nature

a) Progressive
b) Regressive
c) Proportionate
d) Digressive

31. The portion of total deposits which a commercial bank has to keep with itself in liquid assets is known as__

a) CRR
b) SLR
c) Repo Rate
d) Reverse Repo Rate

32. Under strategic sale method disinvestment price is fixed on___

a) Prevailing price
b) Estimated rate
c) Pre-determined rate
d) Market based rate

33. Land development bank provide loans for a period of______

a) One year
b) Two to five years
c) Five to seven years
d) Fifteen to twenty years

34. Censes of population is done in India at an interval of ___

a) 5 years
b) 10 years
c) 15 years
d) None of the above

35. Which of the following is the largest contribution of GDP in India.

a) Agriculture
b) Tourism
c) Industries
d) Service

36. Which index is used to measure inequality of income and wealth?

a) Gini index
b) Price index
c) Both (a) &
(b) d) None of the above

37. Which of the following is not controlled by RBI

a) Cash deposit ratio
b) Cash reserve ratio
c) SLR
d) SCR

38. Which of the following is not a component of demand pull inflation

a) An increase in the government expenditure with no change in tax rate
b) A downward shift of saving function
c) A rise in money wage rate
d) An upward shift of investment function

39. National Income differs from Net National Product at market price by the amount of

a) Net indirect taxes
b) National debt interest
c) Subsidies
d) Current transfers from the rest of the world

40. The production method of calculating national income is also known as ____

a) Value added method
b) Income method
c) Expenditure method
d) None of the above

41. Which of the following type land tenure system were prevailed in India at the time independence?

a) Zamindari System
b) Mahalwari System
c) Ryotwari System
d) All of the above

42. Fiscal deficit can be reduced by__

a) Increasing subsidy
b) Restrict privatization
c) Reprioritize planning scheme
d) Reduction of tax revenue

43. The rate at which discounting of bills of first class is done by RBI is called

a) Repo rate
b) Bank rate
c) Prime lending rate
d) None of the above

44. Convertibility of rupee means ___

a) Determine its own exchange rate in international market
b) Conversion of rupee into various Foreign currencies
c) Transfer of funds in international market
d) None of the above

45. Globalization means__________

a) Creation of global trading blocks
b) Dismantling trade barriers
c) Introducing single currency in the world
d) None of the above

46. Which of the following is a qualitative method of credit control?

a) Bank rate
b) Open market operations
c) Variation in the reserve requirement
d) Regulation of consumer credit

47. When price rise because of growing factor prices then that inflation is called as

a) Deflation
b) Demand full inflation
c) Stagflation
d) Cost push inflation

48. Fiscal policy means

a) Policy related to money matter
b) Policy related to income and expenditure of the government
c) Policy related to disbursement of funds to state government
d) Policy related to foreign trade matters

49. The term disinvestment is more popularly used

a) Where a holding company sells shares of a subsidiary company
b) Where a investment company off loads its holding
c) Where central / State government sells its holding of public sector companies
d) None of the above

50. One major proposal of new industrial policy (1991) was

a) Impose restriction on technical know-how for one year
b) All types of industries have been made licensed
c) NRI’S will not be allowed for capital investment in India
d) Facility of direct foreign investment up to 51% in high priority industries

Part B - Quantitative Aptitude

54. Of the 200 candidates who were interviewed for a position at call center, 100 had a two wheeler, 70 had a credit card and 140 had a mobile phone. 40 of them had both a two wheeler and a credit card, 30 had both a credit card and mobile phone, 60 had both a two wheeler and a mobile phone and 10 had all the three. How many candidates had none of them?

a) 0
b) 20
c) 10
d) 18

57. An AP has 13 terms whose sum is 143. The third term is 5, then first term is

a) 4
b) 7
c) 9
d) 2

58. The solution of the inequality 8x + 6 <12x +14 is

59. If kx-4 = (k-1)x which of the following is true

a) x = -5
b) x = -4
c) x = -3
d) x = 4

60. If the equations kx + 2y = 5 , 3x + y = 1 has no solution then the value of k is

a) 5
b) 2/3
c) 6
d) 3/2

61. If b2 - 4ac is a perfect square but not equal to zero then the roots of the equation ax 2 + bx + c = 0 are

a) Real and equal
b) Real, irrational and equal
c) Real, rational and unequal
d) Imaginary

65. Divide 80 into two parts so that their products is maximum, then the numbers are

a) 15,65
b) 25,55
c) 35,45
d) 40,40

66. A seller makes an offer of selling certain articles that can be described by the equation x=25-2y where x is price per unit and y denotes the no. of units. The cost price of the article is Rs.10 per unit. The maximum quantity that can be offered in a single deal to avoid loss is

a) 6
b) 7
c) 8
d) 9

68. How many different words can be formed with the letters of the word “LIBERTY”

a) 4050
b) 5040
c) 5400
d) 4500

71. The ratio of numbers is 1:2:3 and sum of their squares is 504 then the numbers are

a) 6,12,18
b) 3,6,9
c) 4,8,12
d) 5,10,15

72. In what time will a sum of money double itself at 6.25% p.a simple interest

a) 5 Yrs
b) 8 Yrs
c) 12yrs
d) 16Yrs

73. The difference between and C.I & S.I at 7% p.a for 2 years is Rs. 29.4. then principal is

a) Rs.5,000
b) Rs.5,500
c) Rs.6,000
d) Rs.6,500

74. What principle will amount to Rs.370 in 6 years at 8% p.a at simple interest

a) Rs.210
b) Rs.250
c) Rs.310
d) Rs.350

76. The pair of averages whose value can be determined graphically?

a) Mean & Median
b) Mode & Mean
c) Mode & Median
d) None of the above

77. In normal distribution mean ,median and mode are

a) Equal
b) Not equal
c) Zero
d) None of the above

80. Mean =5, S.D = 2.6, Median = 5, Q.D = 1.5 then Coefficient of Q.D is :

a) 35
b) 39
c) 30
d) 32

81. The difference between maximum and minimum value of the data is known as :

a) Range
b) Size
c) Width
d) Class

82. Price and Demand is example for :

a) No correlation
b) Positive correlation
c) Negative correlation
d) None of these

83. Determine the coefficient of correlation between x and y series

Sum of product deviation of x and y series from mean = 122

a) -0.89
b) 0.89
c) 0.69
d) -0.69

84. If r = + 1 or - 1 then the two regression lines __

a) Have 300 angle between them
b) Have 450 angle between them
c) Coincide
d) Perpendicular to each other

85. If mean of X and Y variables is 20 and 40 respectively and the regression coefficient Y on X is 1.608 then the regression line of Y on X is :

a) Y = 1.608 X + 7.84
b) Y = 1.56 X + 4.84
c) Y = 1.608 X + 4.84
d) Y = 1.56 X + 7.84

87. The index number for the year 2012 taking 2011 as base using simple average of price relatives method from the data given below is:

Commodity A B C D F
Price in 2011 115 108 95 80 90
Price in 2012 125 117 109 95 95

a) 112
b) 117
c) 120
d) 111

88. An index time series is a list of ____ numbers for two or more periods of time.

a) Index
b) absolute
c) Relative
d) None

89. The difference between upper limit and lower limit of a class is called:

a) Class Interval
b) Class boundaries
c) Mid - value
d) Frequency

90. If the class intervals are 10 -14, 15 -19, 20 -24,… Then the first class boundaries are :

a) 9.5 – 14.5
b) 10 – 15
c) 9 – 15
d) 10.5 – 15.5

91. If P (A) = 0.45, P (B) = 0.35, P (A and B) = 0.25 then P(A /B) =

a) 1.4
b) 1.8
c) 0.714
d) 0.556

94. Find the expected value of the following probability distribution

X -20 -10 30 75 80
P(x) 3/20 1/5 1/2 1/10 1/20

a) 20.5
b) 21.5
c) 22.5
d) 24.5

95. In a certain poisson frequency distribution, the probability corresponding to two successes is half of the probability corresponding to three successes. The mean of the distribution is

a) 6
b) 12
c) 3
d) 2.95

96. If the points of inflexion of a normal curve are 6 and 14 then standard deviation is

a) 4
b) 8
c) 16
d) 32

97. There are 75 students in a class and their average marks is 50 and S.D of marks is 5. Number of students who have secured more than 60 marks (Given that area under the normal curve for z = 2 is 0.4772) is ______

a) 1
b) 2
c) 3
d) 4

98. Which of the following is non-probability sampling?

a) Systematic sampling
b) Quota sampling
c) Cluster sampling
d) Stratified sampling

99. Sample in which the number of units is less than _____ is called a small sample

a) 100
b) 75
c) 50
d) 30

100. Standard deviation of a sampling distribution is known as:

a) Standard Error
b) Sampling Error
c) Probable Error
d) Mean Deviation

Answer Key


1. A 2. B 3. A 4. A 5. B 6. B 7. A 8. B 9. C 10. A 11. A 12. B 13. A 14. C 15. B 16. A 17. D 18. B 19. B 20. C 21. D 22. A 23. B 24. B 25. D 26. C 27. B 28. A 29. A 30. A 31. B 32. D 33. D 34. B 35. D 36. A 37. A 38. C 39. A 40. A 41. D 42. C 43. B 44. B 45. B 46. D 47. D 48. B 49. C 50. D


51. C 52. D 53. C 54. C 55. D 56. A 57. D 58. D 59. D 60. C 61. C 62. B 63. D 64. A 65. D 66. B 67. C 68. B 69. A 70. B 71. A 72. D 73. C 74. B 75. A 76. C 77. A 78. D 79. C 80. C 81. A 82. C 83. B 84. C 85. A 86. C 87. D 88. A 89. A 90. A 91. C 92. D 93. B 94. B 95. A 96. A 97. B 98. B 99. D 100. A

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