(Paper) CA-CPT Previous Year Question Paper "December - 2014", Set-2

(Paper) CA-CPT Previous Year Question Paper "December - 2014"

Session - 2

Part A - General Economics

1. A market structure in which many firms sell product that are similar, but not identical.

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

2. In inductive method, logic proceeds from __

a) General to Particular
b) Positive to normative
c) Normative to Positive
d) Particular to general.

3. The most important function of an entrepreneur is to _______.

a) Innovate
b) Bear the sense of responsibility
c) Finance
d) Earn Profit.

4. Which among the following in the right formula for price elasticity of demand using Ratio Method

5. Price discrimination will not be profitable if elasticity of demand is___ in different markets.

a) Uniform
b) Different
c) Less
d) Zero

6. In case of Straight Line demand curve meeting two axes, the Price Elasticity of demand at a point where the curve meets x-axis would be

a) 1
b)  (infinity)
c) 0
d) >1

7. Average Cost of Producing 50 units of a Commodity is Rs.250 and fixed cost is Rs.1000. What will be the average fixed cost of producing 100 units of the Commodity?

a) 10
b) 30
c) 20
d) 5

8. Linear Homogeneous Production function is based on ____

a) Increasing Returns to Scale
b) Decreasing Returns to Scale
c) Constant Returns to Scale
d) None.

9. Use the following data to answer following question

Output (0) 0 1 2 3 4 5 6
Total Cost (TC) 240 330 410 480 540 610 690

The marginal cost of the sixth unit of output is

a) 80
b) 75
c) 133
d) 450

10. Positively sloped (i.e. rising) part of long run Average Cost Curve is due to which of the following _____

a) Constant Returns to Scale
b) Increasing Returns to Scale
c) Diseconomies of Scale
d) Economics of Scale.

11. Elasticity of Supply is greater than one when

a) Proportionate change in price is greater than proportionate change in supply
b) Proportionate change in supply is greater than proportionate change in price
c) Proportionate change in supply is equal to proportionate change in price.
d) All of the above.

12. “The excess of Price which he would be willing to pay rather than go without the thing over that which he actually does pay in the economic measure of his surplus satisfaction” is given by

a) Alfred Marshall
b) Lionel Robbins
c) J.R.Hicks
d) Edge Worth.

13. The firm in a perfectly competitive market is a “price taker”. This designation as a “price taker” is based on the assumption that:

a) The firm has some, but not complete, control over its product price
b) There are so many buyers and sellers in the market that any individual firm cannot affect market.
c) Each firm produces a homogeneous product.
d) There is easy entry into or exit from the market place.

14. The Economy achieves ‘Productive Efficiency’ when:

a) The best quality goods are produced.
b) The highly skillful resources in the country are fully employed.
c) All resources are utilized and goods & services are produced at least cost.
d) None.

15. Kinked demand curve of the Oligopoly indicates

I) If one firm decreases price other firms also decreases the price
II) If one firm increases price other firms also increases the price
III) If one firm decreases the price other firms does not decrease the price.
IV) If one firm increases the price other firms does not increase the price.

a) Only I
b) II and IV
c) I and IV
d) II and III

16. When the price of commodity is Rs.20/- quantity demand is 9 units; and when price is Rs.19, quantity demanded is 10 units. Based on this information, what is marginal revenue resulting from an increase in output from 9 units to 10 units.

a) Rs.20
b) Rs.19
c) Rs.10
d) Rs.1

17. If the quantity demanded of the good increases by 5% when the price another good increases by 20%, then the cross price elasticity of demand between two goods is ___

a) -0.25
b) 0.25
c) -4
d) 4

18. A company produces 10 units of output and incurs Rs.30 per unit of variable cost and Rs.5 per unit of fixed cost. In this case total cost is:

a) Rs.300
b) Rs.35
c) Rs.305
d) Rs.350

19. AFC curve is always _______

a) U-shaped if there is decreasing returns to scale
b) U-shaped if there is increasing returns to scale.
c) Declining when output increases.
d) Intersected by M.C at its minimum point refer back

20. In case of law of variable proportions, diminishing returns occur.

a) When units of a variable input are added to a fixed input and total product falls
b) When units of a variable input are added to a fixed input and marginal product falls
c) When the size of the plant is increased in the long run.
d) When the quantity of the fixed input is increased and returns to the variable input falls.

21. In Long run which of the following is true for a perfect competition

a) Industry is operating at minimum point of AC curve
b) MC is greater than MR
c) AFC is less than AVC
d) Price is less than AC

22. In which year SEZ policy was announced?

a) 1991
b) 1999
c) 2000
d) 2008

23. The share of agriculture in India’s National Income has ____ over the years

a) Increased
b) Decreased
c) Remains constant
d) First decreased and then increased.

24. In which year Income tax was first introduced_

a) 1860
b) 1873
c) 1948
d) 1950

25. Which of the following is a type of inflation?

a) Demand pull inflation
b) Cost push inflation
c) Stagflation
d) All of the above

26. Which of the following is not a function of Commercial Banks?

a) Lending of loans
b) Issue of currency
c) Agency Services
d) Receipts of Deposits

27. Special drawing rights were created in 1969 by

a) IMF
b) World Bank
c) WTO
d) RBI

28. In which of the following areas, 100% FDI was not allowed?

a) Drugs and pharmaceuticals
b) Hotels & Tourism
c) Courier Services
d) Railways

29. Which of the following is not a scheme to reduce poverty in India?

a) Swaran Jayanti Gram Swarozgar Yojana (SGSY)
b) SJSRY (Swarna Jayanti Shahari Rozgar Yojana)
c) MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme)
d) SGRY (Sampoorna Grameena Rojgar Yojana)

30. Which among the following functions, money serves in the dynamic sense?

a) As a store of value
b) As a medium of exchange
c) As a unit of account
d) Transforming saving into investment.

31. ____ refers to that portion of total deposits which a commercial bank has to keep with itself in the form of liquid assets.

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

32. Which among the following pairs is mismatched?

a) National Telecom policy – 2012
b) Electricity act – 2003
c) National policy on skill & development–2009
d) Green Revolution – 1991.

33. Which of the following is mismatch?

a) IBRD – giving short-term loans for development
b) IMF – provides finance to correct disequilibrium in balance of payments
c) RBI – controls credit in India
d) WT0 – generally forbid use of quantitative restrictions on trade.

34. Which of the following is not a part of world bank group?

c) IFC
d) ADB

35. Which of the following is incorrect?

a) GNP at market price – Depreciation = NNP market price.
b) GNP at market price – NFIA = GDP market price
c) GNP at market price – Net Indirect Tax = GNP at factor cost.
d) None of these

36. Lending and borrowing operations of commercial banks result in ___ in the country.

a) Capital formation
b) Credit creation
c) Credit control
d) None

37. “Partnership in excellence” programe has been launched by ministry of power to __

a) Remove the obstacle of thermal power plants.
b) Improve the generation of power
c) Improve conditions of coal mining workers
d) Encourage of public private partnership in power sector.

38. Right to children to free and compulsory education Act RTE Act, 2009 has made free education for all children between the age of_

a) 5 – 15
b) 6-18
c) 7-20
d) 6-14

39. Which of the following item will not be included in balance of current account?

a) Balance of unilateral transfers
b) Balance of invisible items
c) Balance of trade
d) External commercial borrowings

40. Liberalisation refers to ___

a) Relaxation of previous government restrictions usually in the areas of social and economic policies.
b) Transferring the assets and service functions from public to private sectors
c) Disposal of public sector units equity in the market.
d) None of these

41. If we closely watch 39 PSUs which had been chosen for disinvestment / privatization during 1991 – 98, we can find that out of them only 3 PSUs posted losses in 1997 – 1998. These include ____.

a) Gas authority of India Ltd., Hindustan Machine tools, Bharat electrical Ltd.,
b) Hindustan cables Ltd., Hindustan copper Ltd., and Hindustan photo films manufacturing Co. Ltd.,
c) Bharat Petroleum Corporation Ltd., Steel authority of India Ltd., Bharat Heavy Electrical Ltd.,
d) Videsh Sanchar Nigam Ltd., Shipping corporation of India, Indian electro chemical Ltd.,

42. Abolition of intermediates 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 reforms in India

43. If in a population of 1000 people, 400 people are in the labour force, 392 are employed, what is the unemployment rate?

a) 2%
b) 8%
c) 6%
d) 4%

44. Narrow money excludes ______ of the public with the banks while broad money includes it.

a) Demand deposits
b) Time deposits
c) Post office saving deposits
d) Currency in circulation

45. Which of the following is the reason for increase in Birth rate in India?

a) In an agrarian economy, children are considered as assets but not burden because children help in agricultural fields
b) Marriages are almost compulsory and take place at quite young age in India
c) In India, by the age of 50 years, only 5 out of 1,000 in Indian women remain unmarried.
d) All of these

46. Department of posts has launched ___ with the aim of providing fast and reliable postal services to the consumers.

a) Logistic post
b) Project arrow
c) E-Bill post
d) Project areal

47. IDA is a “soft lending arm” of world bank due to_____

a) Provides interest free loans to poor countries
b) Provides loans to developing countries at lower rate of interest
c) Provides short-term loans
d) None of these

48. Nationalization of banks aimed at all of the following except:

a) Removal of control by a few
b) Provision of credit to big industries only
c) Provision of adequate credit for agriculture, small industry and export units
d) Encouragement of a new class of entrepreneur

49. Which of the following statements is correct?

a) In India the tertiary sector contributes maximum to the GDP.
b) India is basically a socialist economy
c) The distribution of income and wealth in India is quite equitable
d) None of the above

Part B – Quantitative Aptitude

54. If a relation R = {(1,1), (2,2), (1,2), (2,1)} is symmetric on A = {1,2,3} then R is

a) Reflexive but not Transitive
b) Transitive but not Reflexive
c) Reflexive and Transitive
d) Neither Reflexive nor Transitive

57. Sum of first n terms of an A.P is 6n2 +6n. Then find 4th term of series.

a) 120
b) 72
c) 48
d) 24

59. If the numbers x,y,z are in G.P then the numbers x 2 +y 2, xy+yz, y 2 +z 2 are in ___

a) A.P
b) G.P
c) H.P
d) None

60. Find the equation of the line parallel to the line joining (7,5) (2,9) and passing through (3, -4)

a) 7x - 4y + 8 = 0
b) 5y + 4x + 8 = 0
c) 7x – 4y – 8 = 0
d) 5y - 4x + 8 = 0

then the common region under these conditions is

c) Line segment CD
d) Line segment BC

c) Line segment CD
d) Line segment BC

a) (4,8)
b) (8,5)
c) (4,6)
d) (16,4)

69. 6pr 360 then find r

a) 4
b) 5
c) 6
d) None

70. If 5 books of English, 4 books of Tamil and 3 books of Hindi are to be arranged in a single row so that books of same language come together

a) 1,80,630
b) 1,60,830
c) 1,03,680
d) 1,30,680

71. The first, second and third month salaries of a person are in the ratio 2:4:5. The difference between the product of the salaries of first 2 months & last 2 months is 4,80,00,000. Find the salary of the second month

a) Rs.4,000
b) Rs.6,000
c) Rs.12,000
d) Rs. 8,000

72. A certain sum of money was invested at S.I for 3 years. If it has invested at rate 7% higher, then the interest have been 882/- more, then the sum is

a) Rs.12,600
b) Rs.6,800
c) Rs.4,200
d) Rs.2,800

73. 5 Boys and 4 girls are to be seated in row. If the girls occupy even places then the no. of such arrangements

a) 288
b) 2808
c) 2008
d) 2880

74. A certain sum of money double itself in 4 years at C.I. In how many years it will become 32 times to itself

a) 16 years
b) 24 years
c) 20 years
d) 12 years

75. The future value of an annuity of Rs.1,000 made annually for 5 years at the rate of interest 14% compound annually is

a) Rs.5610
b) Rs.6610
c) Rs.6160
d) Rs.5160

76. If 6 coins are tossed simultaneously then the probability of obtaining exactly 2 heads is

d) None

77. A die is thrown twice then the probability that the sum of the numbers is divisible by 4 is


78. For two numbers A.M=10 and G.M=8, then H.M=?

a) 9
b) 8.9
c) 6.4
d) None

79. The 3rd decile for the values 15, 10, 20, 25, 18, 11, 9, 12, is

a) 13
b) 10.7
c) 11
d) 11.5

81. 1st quartile is 142, Semi-Inter quartile range is 18. Then median is

a) 151
b) 160
c) 178
d) None

82. Q.D is

a) 2/3 S.D
b) 4/5 S.D
c) 5/6 S.D
d) None

83. Correlation coefficient between x and y is 1, then correlation coefficient between x-2 and (-y/2) +1 is

a) 1
b) -1
c) -1/2
d) 1/2

85. Correlation coefficient between x and y is zero then two regression lines are

a) Perpendicular to each other
b) Coincide to each other
c) Parallel to each other
d) None of these

87. When the prices are decreased by 30% then the index number is now

a) 50
b) 60
c) 70
d) 30

88. The most appropriate diagram to represent 5 year plan outlay of India in different economic sectors is

a) Pie diagram
b) Histogram
c) Line diagram
d) Frequency polygon

89. For construction of Histogram the class intervals of frequency distribution is

a) Equal
b) Unequal
c) Either Equal or Unequal
d) None

90. 100 persons are divided into number of male/female and employed/un-employed it refers to

a) Cardinal Data
b) Ordinal Data
c) Spatial Data
d) Temporal Data

91. If the fluctuations in the observed values are very small as compared to the size of the items, it is presented by

a) Z-Chart
b) Ogive chart
c) False-Base Line
d) Control Chart

93. A random variable X takes three values -1,2,3 with the respective probabilities P(-1)= 1/3, P(2)=1/3, P(3)=1/3, then E |X| is

a) 3/2
b) -5/2
c) 2
d) 9/2

94. For a Binomial distribution mean is 4 and variance is 3 then, 3rd central moment is

a) 5/2
b) 7/4
c) 3/2
d) 1/3

95. In a Normal distribution mean =2 and variance=4 then, 4th central moment is

a) 16
b) 32
c) 48
d) 64

96. A Random variables X follows uniform distribution in the interval [-3,7]. Then the mean of distribution is

a) 2
b) 4
c) 5
d) 6

97. X and Y are two independent Normal variables, then the distribution of X+Y is _______

a) Normal distribution
b) t-distribution
c) Chi-Square distribution
d) F-distribution

98. Area sample is similar to

a) Quota sampling
b) Cluster Sampling
c) Judgement Sampling
d) None

99. t-test can be used only when the sample has been taken from _______population.

a) Binomial
b) Poisson
c) Normal
d) Exponential

100. If the Expected value of an estimator is equal to the value of the parameter. Then the estimator is

a) Biased
b) Unbiased
c) Both (a) & (b)
d) Neither (a) nor (b)

Answer Key

Part A – General Economics

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

Part B – Quantitative Aptitude

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

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