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

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

Session - 2

Part A – General Economics

1. Which statement is true about law of demand

a) Price rises; Demand rises
b) Price falls ; Demand falls
c) Price falls; Demand rises
d) Income falls; Demand rises

2. Which of the following is not a determinant of demand

a) Income of the consumers
b) Price of related goods
c) Quantity Supplied of a commodity
d) Consumer’s Taste & Preferences

3. Generally when income of a consumer increases he goes for superior goods, leading to fall in demand for inferior goods. It means income elasticity of demand is ______

a) Less than one
b) Negative
c) Zero
d) Unitary

4. Which one of the following is not a characteristic of land

a) A Free gift of nature
b) Its supply is fixed
c) An active factor of production
d) It has Different Uses

5. An entrepreneur undertakes which of the following functions

a) Initiating a business and resource coordination
b) Risk or uncertainity bearing
c) Innovation
d) All of the following

6. With a view to increase his production Hari Haran a manufacturer of shoes, increases all the factors of production in his unit by 100%. But at the end of year he finds that instead of an increase of 100%, his production has increased by only 80%. Which law of returns to scale is operating in this case _____

a) Increasing returns to scale
b) Decreasing returns to scale
c) Constant returns to scale
d) None of the above

7. A demand curve parallel to y-axis implies

a) Ep=0
b) Ep=1
c) Ep<1
d) Ep>1

8. Marginal Cost changes due to change in ____ Cost

a) Variable
b) Fixed
c) Total
d) Average

9. A firm produces 10 units of commodity at an average total cost of Rs.200 and with a fixed cost of Rs.500. Find out component of average variable cost in total cost.

a) Rs.300
b) Rs.200
c) Rs.150
d) Rs.100

10. Average total cost to firm is Rs. 600 when it produces 10 units of output and Rs. 640 when the output is 11 units. The MC of the 11th unit is

a) 40
b) 540
c) 840
d) 1040

11. The demand curve of an oligopolist is

a) Determinate
b) Indeterminate
c) Circular
d) Vertical

12. Selling outlay is an essential part of which of the following market situation

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

13. Kinky demand curve model explains the market situation known as _____

a) Pure Oligopoly
b) Collusive oligopoly
c) Differentiated Oligopoly
d) Price rigidity

14. The distinction between a single firm & an Industry vanishes in which of the following market condition

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

15. For price discrimination to be successful, the elasticity of demand for the commodity in the two markets, should be:

a) Same
b) different
c) Constant
d) Zero

16. Abnormal profits exists in the long run only under _____

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

17. One of the essential conditions of Perfect competition is _____

a) Product differentiation
b) Many sellers and few buyers
c) Only one price for identical goods at any one time
d) Multiplicity of prices for identical products at any one time

18. Production Possibilities curve is also known as ___

a) Transformation curve
b) Demand Curve
c) Supply Curve
d) Indifference Curve

19. Who has defined Economics as “Science which deals with wealth”

a) J.B.Say
b) Adam Smith
c) Canon
d) A.C.Pigou

20. Which of the following is not feature of capitalistic economy?

a) Right to private property
b) Restriction on consumer’s right to choose
c) Profit motive
d) Freedom of enterprise

21. The term mixed economy denotes

a) Co-existence of consumer and producer’s goods industries in the economy
b) Co existence of private & public sectors in the economy
c) Co existence of urban & rural sectors in the economy
d) Co existence of large & small industries sectors in the economy

22. A firm will close down in the short period, if AR is less than

a) AVC
b) AC
c) MC
d) None

23. The basic reason of considering the Indian Economy as under developed economy is:

a) Wide spread of poverty
b) High growth of population
c) High income inequalities
d) All of these

24. Tourism is an the example of

a) Primary Sector
b) Secondary Sector
c) Tertiary Sector
d) None of the above

25. ____ has highest Literacy rate in India

a) U.P
b) Rajasthan
c) Kerala
d) Haryana

26. Which state has the highest urban population

a) Uttar Pradesh
b) Maharastra
c) Tamilnadu
d) Rajasthan

27. In rural areas in India, the nature of unemployment is _____

a) Disguised Unemployment
b) Seasonal Unemployment
c) Both a) and b)
d) Voluntary Unemployment

28. Which of the following poverty eradication scheme is presently operational in India?

a) Mahatma Gandhi National Rural Employment Guarantee Scheme
b) Ajeevika
c) Swarn Jayanthi Shahari Rojgar Yojana
d) All of these

29. Petroleum, Oil and Lubricants (POL) constitutes around ____ % of India’s imports bill

a) 32
b) 35
c) 37
d) 39

30. Which of the following is the Correct definition of Micro enterprise according to micro, small and medium enterprise development (MSMED) Act 2006?

a) Upto Rs. 20 lakh investment
b) Upto Rs. 25 lakh investment
c) Upto Rs. 30 lakh investment
d) Upto Rs. 35 lakh investment

31. Plant load factor, a measure of operational efficiency of a thermal plant varies across the regions in India. In which of the following regions it has been lowest in the year 2012-13.

a) Eastern
b) Western
c) Central
d) Southern

32. Food Corporation of India (FCI) is the Nodal Agency for which of the following activities relating to food management in the country?

a) Procurement
b) Distribution
c) Storage
d) All of the above

33. The annual growth rate of industrial sector has remained at _____ % over 11th plan period

a) 8.2
b) 7.4
c) 8.9
d) 6.8

34. Since adoption of economic liberalisation the share of agriculture in India’s GDP is _____

a) Constant
b) Increasing
c) Decreasing
d) None of these

35. R.B.I Nationalised in ___

a) 1949
b) 1969
c) 1935
d) 1991

36. Which of the following is not the function of R.B.I

a) Banker’s Bank
b) Issue of currency.
c) Regulation of Foreign Trade
d) Custodian of Forex Reserves

37. Which one of the following statement defines the term Reverse Repo Rate?

a) The Rate at which commercial banks borrow money from RBI
b) The Rate at which RBI borrows from other banks
c) The Rate at which commercial banks borrow from each other
d) None of these

38. Monetary policy in India is regulated by

a) Ministry of finance
b) RBI
c) Planning Commission

39. Which of the following bank enforces the provisions of foreign exchange management act in India?

a) Central Bank of India
b) State Bank of India
d) Reserve bank of India

40. Which of the following is not a quantitative method of credit control

a) Bank Rate policy
b) Open market operations
c) The Repo Rate
d) Consumer credit regulation

41. Traditionally money has been defined on the basis of its functional aspects. Which one of the following falls under this category

a) Medium of exchange
b) Measure of value
c) A Store of value
d) all of the above

42. Stagflation is _____

a) Inflation with recession
b) Inflation with growth
c) Deflation with growth
d) Deflation followed with inflation

43. Which of the following measures can be used for curbing inflation

a) Monetary measures
b) Fiscal measures
c) Investment Controls
d) All of these

44. Trend of continuous rising prices of factors of production is known as____

a) Demand pull inflation
b) Cost push inflation
c) Stagflation
d) Hyperinflation

45. Which of the following was not immediate cause of 1991 economic crisis

a) Rapid growth of population
b) Severe inflation
c) Expanding Fiscal deficit
d) Rising current account deficit

46. Direct taxes being progressive in nature, it is help to

a) Reduce inequality
b) Reduce poverty
c) Reduce price
d) Reduce poverty and prices

47. In 2003 _____ was passed to reduce the Gross Fiscal fiscal deficit by 0.5% of GDP in each financial year.

a) FRBM Act

48. Adverse balance of payments can be corrected through

a) Devaluation of currency
b) Import Substitution
c) Vigorous exports
d) All of these

49. ______ means integrating the global economy with the world economy

a) Globalisation
b) Privalisation
c) Disinvestment
d) Liberalisation

50. As a consequence of economic reforms, the MRTP Act 1969 was replaced by competition Act in year ______

a) 2001
b) 2002
c) 2003
d) 2004

Part B - Quantitative Aptitude

53. If (125)150 = (25x)50 then the value of x will be

a) 35
b) 45
c) 25
d) 5

a) y
b) -1
c) 1
d) None

55. In a class of 50 students 35 opted for Maths, 37 opted for commerce. The number of such students who opted for both maths and commerce is

a) 13
b) 15
c) 22
d) 28

56. The range of the relation {(1,0) (2,0) (3,0) (4,0) (0,0)} is

a) {1,2,3,4,0}
b) {0}
c) {1,2,3,4}
d) None

57. If A={1,2,3} and B={4,6,7} then the relation R={(2,4) (3,6)} is

a) A function from A to B
b) A function from B to A
c) Both (a) and (b)
d) Not a function

a) 1.95
b) 1.5
c) 1.75
d) None

61. The distance from the origin to the point of intersection of the two straight lines 3x-2y=6 and 3x+2y=18 is

a) 2units
b) 3 units
c) 4 units
d) 5 units

62. The lines 3x-4y+5=0, 7x-8y+5=0 and 4x+5y- 45=0 are

a) Concurrent
b) Parallel
c) Not concurrent
d) None of these

a) BCDB and DEFD
b) Unbounded

64. The roots of equation y3 + y2 - y- 1 = 0 are

a) 1,1,-1
b) -1,-1,1
c) 1,1,1
d) None

a) 5
b) 5/2
c) 1
d) None

68. If 6 times the no. of permutations of n items taken 3 at a time is equal to 7 times the no. of permutations of (n-1) items taken 3 at a time then the value of n will be

a) 7
b) 9
c) 13
d) 21

a) 999
b) 998
c) 997
d) None

70. If P is 25% less than Q and R is 20% higher than Q the Ratio of R and Q

a) 5:8
b) 8:5
c) 5:3
d) 3:5

71. A person has assets worth Rs.1,48,200. He wish to divide it amongst his wife, son and daughter in the ratio 3:2:1 respectively. From this assets the share of his son will be

a) Rs.74,100
b) Rs.37,050
c) Rs.49,400
d) Rs.24,700

72. If a sum triples in 15 yrs at Simple rate of interest then the rate of interest per annum will be

a) 13.0%
b) 13.3%
c) 13.5%
d) 18%

73. The Partners A & B together lent Rs. 3903 at 4% p.a interest compounded annually. After a span of 7 years, A gets the same amount as B gets after 9 years. The share of A in the sum of Rs.3903/- would have been

a) Rs.1875
b) Rs.2280
c) Rs.2028
d) Rs.2820

74. How much amount is required to be invested every year as to accumulate Rs. 6,00,000 at the end of 10th year, if interest is compounded annually at 10% rate of interest?
[Given : (1.1)10 = 2.59374]

a) Rs.37,467
b) Rs.37,476
c) Rs.37,647
d) Rs.37,674

76. The mean of the following data is 6. Find the value of P.

X: 2 4 6 10 P+5
Y: 3 2 3 1 2

a) 4
b) 6
c) 8
d) 7

77. Which of the following statement is true?

a) Median is based on all observations
b) The Mode is the mid value
c) The Median is the 2nd Quartile
d) The Mode is the 5th decile

80. When each individual gets the exactly opposite rank by the two judges, then the rank correlation will be ______

a) -1
b) 0
c) +1
d) +1/2

81. The equations two lines of regression for x & y are 5x = 22 + y and 64x = 24 + 45y, then the value of regression coefficient of y on x will be ____

a) 5
c) 64/45
d) 45/64

83. If the mean of two variables x & y are 3 and 1 respectively. Then the equation of two regression lines are _____

a) 5x+7y-22=0 & 6x+2y-20=0
b) 5x+7y-22=0 & 6x+2y+20=0
c) 5x+7y+22=0 & 6x+2y-20=0
d) 5x+7y+22=0 & 6x+2y+20=0

84. Circular test is satisfied by which index number?

a) Laspayere’s
b) Paasahe’s
c) Fisher’s
d) None of the above

85. Fisher’s Index number is _____ of Laspayere’s and Paasehe’s Index numbers

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

86. Which of the following statement is true?

a) Paasche’s index number is based on base year quantity
b) Fisher’s index satisfies the circular test
c) Arithmetic mean is the most appropriate average for constructing the index number
d) Splicing means constructing one continuous series from two different indices on the basis of common base

87. Monthly salary of on employee was Rs.10,000 in the year 2000 and it was increase to Rs.20,000 in the year 2013 while the consumer price index number is 240 in year 2013 with the base year 2000, what should be his salary in comparison of consumer price index in the year 2013?

a) 2,000
b) 16,000
c) 24,000
d) None

88. The following data related to the marks of group of students

Marks No. of Student
More than 70% 7
More than 60% 18
More than 50% 40
More than 40% 60
More than 30% 75
More than 20% 100

How many students have got marks less than 50% ?

a) 60
b) 82
c) 40
d) 53

89. To draw Histogram the frequency distribution should be

a) Inclusive type
b) Exclusive type
c) Inclusive and Exclusive type
d) None of the above

90. “The less than Ogive” is a:

a) U – shaped curve
b) J – shaped curve
c) S – shaped curve
d) Bell – shaped curve

91. There were 200 employees in an office in which 150 were married. Total male employees were 160 out of which 120 were married. What was the number of female unmarried employees?

a) 30
b) 10
c) 40
d) 50

95. If a variate X has, Mean > variance, then its distribution will be

a) Binomial
b) Poisson
c) Normal
d) t-distribution

97. 5000 students were appeared in an examination. The mean of marks was 39.5 with standard deviation 12.5 marks. Assuming the distribution to be normal, find the number of students recorded more than 60% marks.
[Given when Z = 1.64 area of normal curve = 0.4494]

a) 1000
b) 505
c) 252
d) 2227

98. Method used to test the human blood is called in statistical terminology ______

a) Census investigation
b) Blood investigation
c) Sample investigation
d) None

99. A parameter may be defined as a characteristic of a population based on ____

a) Sample units
b) All the units
c) Few units
d) Any of the above

100. If it is known that the 95% LCL and UCL to population mean are 48.04 and 51.96 respectively. If the sample size is 100, what will be the value of population SD?

a) 8
b) 10
c) 12
d) 12.5

Answer Key

Part A – General Economics

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

Part B – Quantitative Aptitude

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

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