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CS-Foundation-BUSINESS ECONOMICS
3. When marginal product (MP) & average product (AP) both falls-
a. AP lies below MP
b. AP & MP intersect
c. MP Lies below AP
d. None of above
4. Total Product, Marginal Product & Average Product for 1st unit of labor are-
e. Identical
f. Different
g. Unable to be determined
h. None of above
6. To economists, the common thing between the short run and the long is that:
m. In both, capital is fixed
n. In both, labor is variable
o. In both, production is absent
p. None of above
s. Q= F (L,L,K,E) T
t. None of above
10. Opportunity cost of an unemployed youth in past now getting job worth Rs.
7500/- per month is _________.
a. Nil
b. infinite
c. Rs. 7500
d. Negative
13. What is the Total product of the first three units of labour?
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a. 295
b. 95
c. 195
d. 275
14. If Optimum level of output results at end of 4th unit of labor, TP & MP shall be-
a. 100 & 100 respectively
b. 195 & 0 respectively
c. 0 & 100 respectively
d. 275 & 0 respectively
15. Direction of TP, AP & MP in 3rd stage of Law of variable proportions shall be-
a. All the three Increasing
b. TP increasing, AP & MP falling
c. All the three falling
d. TP & AP increasing, MP falling
16. Uncommon thing between law of variable proportions & returns to scale is-
a. Increasing Returns
b. Decreasing Returns
c. Constant Returns
d. None of above
18. Which one of the following is also known as Long run average cost curve?
a. Basket Curve
b. Wallet Curve
c. Envelope curve
d. None of above
23. With which of the following is the concept of marginal cost closely related?
a. Variable cost.
b. Fixed cost.
c. Opportunity cost.
d. Economic cost.
24. Which of the following does not have non linear shape?
a. Total cost curve
b. Total Variable cost curve
c. Total fixed cost curve
d. None of above
Use the following data to answer question 25-29. (Total Cost in Rs)
Output 0 1 2 3 4 5 6
(Units)
Total Cost 300 350 410 465 515 600 700
(TC)
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b. 410
c. 465
d. 165
30. The rising part of the LAC curve is due to which of the following?
a. Economies of scale.
b. Diminishing returns.
c. The coordination problems in firm
d. Diseconomies of scale
31. A firm’s average total cost is Rs. 300 at 5 units output and Rs. 320 at 6 units of
output. The marginal cost of producing the 6th unit is:
a. Rs. 20
b. Rs. 120
c. Rs. 320
d. Rs. 420
32. A toy manufacturer incurs total cost of Rs, 1, 13,900 per annum at zero level of
output. If the selling price is Rs. 200 per unit and break even quantity is 680 units,
what is the average variable cost per unit for the firm in Rs.?
33. A publisher publishes a book on management. His fixed cost is Rs. 2, 00, 000. If
he sells the book at Rs.250 per unit and incurs a variable cost of Rs. 50 per unit, the
total variable cost at break even shall be______
Use the following data taken from seller of Diamonds to answer question 34-39.
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35. Producer should continue to produce & sell at _____ units of output.
a. 6
b. 2
c. 5
d. None of above
39. If the seller sells 5th & 6th unit, his total profit will_____
a. None of below
b. Rise
c. Be maximum
d. Fall
If TC = 2Q2 + 55Q +150 & TR = 2Q2 + 40Q + 1050, then answer questions (40 to 43)
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c. Rs. 60
d. Rs. 10660
If TFC = Rs.750, TVC = 3Q2 + 50Q, & MR = 15Q + 5, answer questions (44-45)
48. Market structure where goods have close substitutes is best described as-
(a) Perfectly competitive.
(b) Monopolistic.
(c) Monopolistically competitive.
(d) None of above
49. In perfect competition in the short run there will be __________ possibilities
(a) Normal profits.
(b) Supernormal profits.
(c) Loss
(d) All of above
50. If seller’s AR & AC functions are given as 115Q + 290 & 95Q + 305 respectively,
with Output of 19 units, seller is making_____
a. NP
b. SNP
c. Loss
d. None of above
51. __________ is the official minimum rate at which the Central Bank of a
country is prepared to rediscount approved bills held by banks.
a. CRR
b. SLR
c. Bank rate
d. Repo rate
a. 1951-56
b. 1961-66
c. 1947-52
d. None of above
53. Literacy rate calculated considering total population into account is known
as-
a. Crude Literacy Rate, b. Total Literacy Rate c. Mean Literacy Rate, d. None
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54. The National Population Policy (NPP) 2000 set long term objective of
achieving a stable population by-
a. (a-3, b-1, c-2, d-4) b. (a-4, b-3, c-1, d-4) c. (a-2. b-1, c-3, d-4)
d. (a-4, b-1, c-3, d-2)
a. (a-4, b-1, c-2, d-3) b. (a-2, b-4, c-1, d-3) c. (a-3, b-4, c-3, d-1)
d. (a-3, b-4, c-1, d-2)
57. Corporation Bank & Air India are the examples of:
(a) Fixed capital (b) Artificial capital (c) private capital (d) public
capital.
(a) Capitalist economy (b) Socialist economy (c) Mixed economy (d)
None of these
(a) State plays a major role (b) Market plays major role (c) Both a & b (d)
Neither a nor b
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60. . When the price of a complementary of commodity X falls, the demand for X-
61. Which of the following is the method of measuring elasticity of demand when
change in price of a commodity is substantial?
65. If Repo Rate is 2 %, as per RBI policy, Reverse repo rate must be-
a. 1% b. 2% c. 10% d. 0.5%
67. 11th Plan had objective of reducing Infant Mortality rate to _____.
a. 30 b. 28 c. 35 d. 0
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70. A target for creating ________new jobs has been set for the Rural Employment
Generation programme under the Tenth Five Year plan.
a. 25 Lacs b. 30 Lacs c. 100 Lacs d. 1 Crore
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MCQs
a) Statistics is derived from the Latin word 'status' b) statistics is derived from
Italian word 'statista
2) Statistics is applied in
4) The data collected on the height of group of students after recording their heights
with a measuring
tape are
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c) The main part of table d)The upper part of table that describes column
& sub-column
a) Left part of the table describing the Columns b) Right part of the table
describing the Column
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a)4 b) 3 c) 2 d) None
a) 3 b) 5 c) 4 d) none
a) 2 b) 3 c) O d) none
26) Some believe that statistics originated from a German word ........
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Raw material 12
labour 20
direct Production 35
others 23
what is the difference between the central angles for largest & smallest components ?
a) 72 b) 48 c) 56 d) 92
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(MCQ’s)
6. In the five year plan document, the amount of money, is broken down into-
a. public sector outlay and private sector plan outlay.
b. only public sector outlay
c. only private sector outlay
d. none of above
7. The public sector outlay is the most important part in the plan as-
a. the private sector has direct control over the investment during a plan
period
b. the Govt. has direct control over the investment during a plan period
c. the Govt. has no direct control over the investment during a plan period
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d. None of above
8. The first Prime Minister of India, Jawaharlal Nehru presented the first five-year plan
on –
a. December 8, 1951.
b. January 26, 1952
c. January 26, 1951
d. August 15, 1947
9. Target growth Rate & Actual growth Rate for 1st Five Year Plan was -
a. 3% & 3.6% respectively
b. 2.1% & 3% respectively
c. 3.6% & 2.1% respectively
d. 2.1% & 3.6% respectively
10. Target growth Rate & Actual growth Rate for 9th Five Year Plan was –
a. 5.35% & 6.5% respectively
b. 5.5% & 6.35% respectively
c. 6.5% & 5.35% respectively
d. None of above
11. The Tenth Five Year Plan duration covered the period-
a. 2002-07
b. 1997-2002
c. 2002-2012
d. None of above
13. 11th Five Year Plan targeted increase in agricultural growth rate to ___%
a. 10%
b. 1%
c. 4.5%
d. 4%
15. In India, according to the Annual Report 2009-10 of the Ministry of Agriculture-
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16. The 1st Five Year Plan duration covered the period-
a. 1951-56
b. 1947-52
c. 1956-61
d. None of above
18. __________is a process where there is a sharp increase in the industrial share of
GDP
a. Industrialization
b. Commercialization
c. Modernization
d. None of above
19. System where British rulers collected the land taxes from farmers and assigned
responsibility to local zamindars in India is known as__________
a. Mahalwari system
b. Ryotwari system
c. Zamindari system
d. All of above
21. The Industrial Policy Resolution, 1948, had following major feature.
a. State Monopoly in Arms and ammunition, Atomic Energy , Rail Transport
b. Private Monopoly in Arms and ammunition, Atomic Energy, Rail Transport
c. Foreign Direct Investment
d. Disinvestment
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ADDITIONAL MCQS
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5. The share of agriculture in India’s national income has ______ over the years.
a. Remained constant.
b. Decreased.
c. Increased.
d. First decreased and then increased.
7. The area under irrigation has ______ over the years in India.
a. Remained constant.
b. Decreased.
c. Increased.
d. First increased and then decreased.
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11. Which of the following has been specifically established to meet the requirements
of credit of the farmers and villagers?
a. ICICI bank.
b. Regional Rural Banks.
c. State Bank of India.
d. EXIM bank.
14. Three steel plants in Bhilai, Rourkela and Durgapur were set up in the
a. First plan.
b. Second plan.
c. Third plan.
d. Fourth plan.
15. Which of the following has resulted in failure to achieve targets of industrial
Production?
a. Poor planning.
b. Power, finance and labour problems.
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c. Technical complications.
d. All of the above.
16. About _______ per cent of the sick units in India are small units.
a. 10 per cent
b. 5 per cent
c. 30 per cent
d. 98 per cent
17. The Tenth Plan aimed at achieving a growth rate of _______ in the industrial
sector.
a. 5 per cent
b. 8 per cent
c. 10 per cent
d. 6 per cent
18. Oil and Natural Gas Corporation Indian Oil Corporation, Steel Authority of
India, and Bharat Heavy Electricals are all examples of
a. Small scale units.
b. Private sector units.
c. Public sector units.
d. Sick units.
19. Over the planning period the share of industrial sector in the GDP of India
has_________.
a. Increased
b. Decreased
c. Remained constant
d. Remained above 50 per cent
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24. India has the ______ largest scientific and technical manpower in the world.
a. Fifth
b. Tenth
c. Eighth
d. Second
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(MCQ’s)
1. India accounts for ______percent of world surface area but it supports _____ percent
of the world population respectively.
a. 3.4 & 16.7 b. 4 & 20 c. 2.4 & 16.7 d. 16.7 &
2.4
3. The National Population Policy (NPP) 2000 outlines the long term objective of
achieving a stable population by-
a. 2045 b. 2020 c. 2030 d. 2015
5. Where as in 1921 the per capita cultivated land was ____ acres, it reduced to ____
acres in 1995 respectively.
a. 1.11 & 1 b. 1 & .048 c. 1.11 & .048 d. 1 & 1.11
V. The country is responsible for _______ %of the total population on earth.
a. 17.5 b. 15 c. 20 d. 100
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8. Literacy rate calculated by taking the total population into account is known as-
a. Crude Literacy Rate b. No Literacy Rate c. Mean Literacy Rate
9. Literacy rate calculated by considering population aged above 7 years is known as-
a. Crude Literacy Rate b. Effective Literacy Rate c. Adult Literacy Rate
10. As per National Population Policy, 2000 (NPP 2000), following targets are set-
I. Make school education up to age _____free and compulsory
a. 10 b. 15 c. 21 d. 14
II. Reduce infant mortality rate to below _____per 1000 live births.
a. 20 b. 30 c. 40 d. 35
III. Promote delayed marriage for girls, not earlier than age ____.
a. 15 b. 21 c. 18 d. 25
14. National Rural Employment Guarantee Act (NREGA) 2005was passed in-
a. December 2005 b. November 2005 c. May 2005 d.
September 2005
17. A target for creating ______ lakh new rural jobs has been set under the Tenth Five
Year plan
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a. 20 b. 50 c. 25 100
21. The Telecom Regulatory Authority of India (TRAI) was established with effect
from_____
a. 20th Feb 1991 b. 20th Feb 2001 c. 20th Feb 1997 d. 20th February 2007
24. Nearly ______% of the population in India does not have access to essential
medicines.
a. 25 b. 51 c. 75 d. 67
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11. Of late, birth rate in India has _______ and death rate has ________
a. Fallen, fallen
b. Risen, fallen.
c. Risen, risen
d. Fallen, risen.
15. ____________ Unemployment may result when some workers are temporarily out
of work changing job.
a. Cyclical.
b. Voluntary.
c. Frictional
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d. Seasonal
16. According to ___________ measure, a person is said to be employed for the week
even if the employed only for a day during the week.
a. Usual status.
b. Current weekly status.
c. Current daily status.
d. Current yearly status.
a. Private schools.
b. Private airlines.
c. Private ships,
d. Private railways
26. Over the years, the incidence of malaria (cases in million) has ___________
a. Reduced
b. Increased
c. Remained the same
d. Doubled.
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