93. Every partner has the right to retire by___________.
(a) Majority of partners (b) Consent of all the partners
(c) Will (d) Giving notice
94. When a seller of goodwill of a business agrees not to carry on similar business, the limits and
conditions imposed have to be _________ having regard to the nature of the business.
(a) Reasonable (b) Understandable
(c) Considerable (d) Unreasonable
95. _________ awarded with a view to punish the defendant, and not solely with the idea of
awarding compensation.
(a) Nominal Damages (b) Special Damages
(c) Vindictive Damages (d) Ordinary Damages
96. A question of foreign law is a question of
(a) Foreign Law (b) Indian Law
(c) Law (d) Fact
97. In a contract of auction sale, the property in the goods passes with _______.
(a) Payment of price (b) Fall of the hammer
(c) Consent of the owner goods (d) Happening of all the above
98. Partnership is merely an ________ relation between the partners.
(a) Legal (b) Implied
(c) Express (d) Birth
99. ‘A’ contracts to sing for ‘B’ at concert for Rs. 5000 which is paid in advance. ‘A’ is too ill to
sing. Decide.
(a) A will not refund the advance of Rs. 5000 to B.
(b) A must refund the advance of Rs. 5000 to ‘B’
(c) A should make a new contract for sing
(d) B will compel A to sing
100. ‘A’ and ‘B’ are partners in a stationary business. ‘A’ buys on credit certain quantity of
pencils for a whole seller in the firm’s name. He uses these pencils for the family. Decide.
(a) ‘A’ will be personally liable
(b) It will bind the firm
(c) A as well as firm both will be liable
(d) All of these
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SECTION – C : GENERAL ECONOMICS (50 MARKS)
101. The definition “Economics is the science which studies human behavior as a relationship
between ends and scarce means which have alternative uses” was given by:
(a) J. B. Say (b) Alfred Marshal
(c) Robbins (d) Paul. A. Samuelson
102. Economics is _________.
(a) Not a normative science.
(b) Not a positive science.
(c) Partly science and partly art
(d) Neither a normative nor a positive science.
103. Which of the following statements is incorrect in case of capitalist economy?
(a) There is equality of income among people in the economy
(b) Profit-motive gets precedence over social motive
(c) Freedom of enterprise about what to produce
(d) Right to own property
104. Which of the following is likely to cause an inward shift in a country’s PPC?
(a) Scientist discovering new techniques of production
(b) Workers getting job in making fly-over
(c) War destroying resources of the country
(d) The country finds new techniques of agricultural production
105. Calculate Income-elasticity for the household when the income of a household rises by 5%
and the demand for bajra falls by 2%.
(a) + 2.5 (b) – 2.5
(c) - .4 (d) + .4
106. The consumer surplus concept is derived from:
(a) Law of demand
(b) Indifference curve analysis
(c) Law of diminishing marginal utility
(d) All of above
107. The consumer is in equilibrium when:
(a) When marginal utility is constant
(b) When marginal utility is greater than price of the good
(c) When marginal utility is less than price of the good
(d) When marginal utility is equal to price of the good
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108. Which is not the property of Indifference curve analysis?
(a) Indifference curves slope downward to the left
(b) Indifference curves are always convex to the origin
(c) Indifference curves can never intersect each other
(d) A higher indifference curve represents a higher level satisfaction than the lower indifference
curve
109. Capital is a:
(a) Stock concept (b) Flow Concept
(c) Both (a) and (b) (d) None of the above
110. Which is not the function of an entrepreneur?
(a) Initiating a business enterprise and resource co-ordination
(b) Risk bearing or uncertainty bearing
(c) Innovation
(d) Mobilisation of savings
111. Types of balance of trade are
(a) Favorable balance of trade (b) Unfavorable balance of trade
(c) Balanced balance of trade (d) All of the above
112. A full fledged Department of Family Planning was created in India in
(a) 1950 (b) 1951
(c) 1966 (d) 1955
113. In 2008-09, ______ continued to be major source of India’s import
(a) EU (b) North America
(c) Asia and ASEAN (d) South Amercia
114. Highest density of population is in:
(a) Punjab (b) Maharashtra
(c) U. P. (d) Delhi
115. Wealth Tax was abolished in:
(a) 1985 (b) 1998
(c) 2005 (d) False it is still continuing
116. In order to improve production of power, Electricity Act was passed in
(a) 2003 (b) 2005
(c) 2002 (d) 2004
117. Petroleum, Oil and Lubricants constitute —— of our import bill (2007-08)
(a) One-fourth (b) One-third
(c) One-fifth (d) One-sixth
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118. About ———— percent of sick units are other than small units
(a) 96% (b) 4%
(c) 5% (d) 30%
119. The industrial sector depends on the agricultural sector because:
(a) The agricultural sector provides food and other products for the consumption purpose of
industrial sector
(b) The agricultural sector provider market for the industrial products
(c) The agricultural sector provides raw – materials to industry
(d) All of the above
120. The service sector in India now accounts for:
(a) 50-60% of GDP (b) 60-70% of GDP
(c) 40-50% of GDP (d) 30-40% of GDP
121. On which of the following, income tax is not imposed in India?
(a) Income from salary. (b) Income from house property.
(c) Interest on fixed deposits. (d) None of the above
122. PPF stands for:
(a) Private Provident Fund (b) Personal Provident Fund
(c) Public Provident Fund (d) Public Presidency Fund
123. Income Tax was introduced first time in India in 1860 and then discontinued in 1873. It was
re-introduced in the year:
(a) 1885 (b) 1886
(c) 1887 (d) 1890
124. Which of the following is not the example of direct tax?
(a) VAT (b) Wealth Tax
(c) Corporate Tax (d) Income Tax
125. Excise duty is imposed on
(a) Goods imported in India (b) Goods sold in India
(c) Goods manufactured in India (d) Goods exported from India
126. Which of the following is correct?
(a) Expenditure on financial assets which are produced and owned within the country is
included in national expenditure
(b) Expenditure on financial assets of foreign countries is included in national expenditure
(c) Goods produced in preceding years are also included in national income.
(d) None of the above
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127. Which of the following is included in national income ?
(a) Scholarship (b) Old age pensions
(c) Unemployment Allowance (d) None of the above
Use table to answer question 128-129
House of Total Marginal
Labour Output Product
0
1 200 200
2 - 180
3 480 __
128. What is the total output when 2 hours of labour are employed?
(a) 180 (b) 200
(c) 480 (d) 380
129. What is the marginal product of the third hour labour?
(a) 120 (b) 100
(c) 180 (d) 480
130. The cost that firm incurs in hiring or purchasing any factor of production is referred as:
(a) Explicit cost (b) Implicit cost
(c) Variable cost (d) Fixed cost
131. Per capita national income means:
(a) NNP/ Population (b) Total capital / Population
(c) Population / NNP (d) None of the above
132. According to the World Development Report – 2006, the GINI index for India in 1999-00
(survey year) was:
(a) . 33 (b) . 29
(c) . 53 (d) . 18
133. TRAI is regulatory, authority for —— in India
(a) Tourism (b) Telecom
(c) Transport (d) Technical Education
134. Optimum population is that level of population at which
(a) Output per capita is the highest
(b) Output per capita is the lowest
(c) Output per capita is the same
(d) None of the above
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135. Indian Government aims at reducing the maternal mortality rate to — per thousand birth
by 2010
(a) 5 (b) 1
(c) 2 (d) 3
136. The main objective of fiscal policy in developing countries is to:
(a) Promote economic growth
(b) Mobilise resources for economic growth
(c) Ensure economic growth and equitable distribution
(d) All the above
137. Suppose income of the consumers increases by 50 % and the demand for commodity x
increases by 20 % what will be the income elasticity of demand for commodity x ?
(a) . 04 (b) . 4
(c) 4 (d) – 4
138. ———— depicts complete picture of consumer tastes and preferences.
(a) Budget line (b) Average cost curve
(c) Indifference map (d) Marginal revenue curve
139. At present, the area covered by forest as a percentage of total land area in India lies within
a range of :
(a) 11 % to 15 % (b) 16 % to 20 %
(c) 21 % to 25 % (d) 26 % to 30 %
140. Population explosion occurs in ——— stage of the theory of demographic transition
(a) First (b) Second
(c) Third (d) Fourth
141. A higher indifference curve shows:
(a) A higher level of satisfaction (b) A higher level of production
(c) A higher level of income (d) None of the above
142. In fiscal deficit we add borrowing and other liabilities to the ———
(a) Primary Deficit (b) Capital Deficit
(c) Budget Deficit (d) Money Deficit
143. In the case of a Giffen good, the demand curve will be
(a) Downward sloping to the right (b) Upward sloping to the right
(c) Vertical (d) None of the above
144. In case of an inferior good the income elasticity of demand is:
(a) Zero (b) Positive
(c) Negative (d) None of the above
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145. When quantity demanded changes by larger percentage than does price, elasticity is termed
as:
(a) Inelastic (b) Elastic
(c) Perfectly Elastic (d) Perfectly Inelastic
146. The share of concessional debt in total external debt of India has:
(a) Remained the same (b) Doubled
(c) Reduced (d) Increased
147. The incidence of taxes refers to:
(a) The level and rate of taxation
(b) Who ultimately bears the money burden of the tax
(c) The growth of taxation
(d) The way in which a tax is collected
148. Marginal cost is defined as:
(a) The change in total cost due to a one unit change in output
(b) Total cost divided by output
(c) The change in output due to a one unit change in an input
(d) Total product divided by the quantity of input
149. Which is the other name that is given to the Long run average cost curve?
(a) Enveloping curve (b) Profit curve
(c) Demand curve (d) Supply Curve
150. Diminishing marginal returns imply:
(a) Decreasing average variable cost (b) Decreasing marginal cost
(c) Increasing marginal cost (d) Decreasing average fixed cost
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)
151. A person opened a savings bank account 4 months ago, which has now a balance of
Rs. 21,315. If the bank pays 4.5% simple interest, how much money was deposited by
him, initially?
(a) Rs. 21,000 (b) Rs. 20,000
(c) Rs. 15,000 (d) None of these
152. Mohan deposits Rs. 500 into an account paying 8% simple interest. He makes two more
deposits of Rs. 1,000 each; first after 3 months and second after 6 months. How much will be
in his account at the end of the year, if he makes no other deposits and withdrawals during
the time?
(a) Rs. 2,600 (b) Rs. 2,650
(c) Rs. 2,640 (d) None of these
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153. How long will it take Rs. 1,200 to amount Rs. 2,000 at 5% converted quarterly at Compound
Interest?
(a) 10 years 3 months (b) 10 years 5 months
(c) 10 years (d) None of these
154. A man borrowed Rs. 20,000 from a money lender but he could not repay the amount for a
period of 4 years. According the money lender’s demand showed Rs. 26,500 due from him.
At what rate percent annum compound interest did the money lender lend his money?
(a) 7% (b) 8%
(c) 7.5% (d) None of these
155. The compound interest earned by a money lender on Rs. 7,000 for 3 years if the rate of
interest for 3 years are 7%, 8% and 8.5% respectively is
(a) Rs. 1750 (b) Rs. 1800
(c) Rs. 1776 (d) None of these
156. What annual payment will discharge a debt of Rs. 770 due in years, the rate of interest being
5% per annum?
(a) Rs. 150 (b) Rs. 140
(c) Rs. 130 (d) None of these
157. The rate of interest for the first 2 years is 3% per annum, for the next 3 years is 8% per
annum and for the period beyond 5 years, 10% per annum. If a man gets Rs. 1520 as a
simple interest for 6 years; how much money did he deposit?
(a) Rs. 3800 (b) Rs. 3000
(c) Rs. 4000 (d) None of these
158. Rs. 7500 is borrowed at compound interest at the rate of 4% per annum. What will be the
amount to be paid after 6 months, if interest is compounded quarterly?
(a) Rs. 7650.75 (b) Rs. 7600.50
(c) Rs. 7000 (d) None of these
159. The compound interest on any sum at the rate of 5% for two years is Rs. 512.50. Find the
sum.
(a) Rs. 4000 (b) Rs. 5,000
(c) Rs. 3,000 (d) None of these
160. In what rate per cent per annum will Rs. 1,000 amount to Rs. 1331 in 3 years? The interest
is compounded yearly is:
(a) 10% (b) 12%
(c) 11% (d) None of these
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161. The range of 10 observations is 20. If each item is increased by 15, then the range of new
series is
(a) 20 (b) 35
(c) 5 (d) None of these
162. The range of 10 observations is 20. If each item is divided by –2, then the range of new series
is
(a) –10 (b) 10
(c) 20 (d) None of these
163. The relation between two variables is 2x – 3x + 12 = 0. If mean deviation of y is 6 then mean
deviation of x is
(a) 9 (b) 6
(c) 3 (d) None of these
164. In grouped frequency distribution, if the Class interval Gap is unequal; then which dispersion
is more appropriate?
(a) Q.D. (b) Range
(c) Mean deviation (d) Standard Deviation.
165. If the Standard Deviation of 10 observations is 4 and if each item is divided by – 2 then
Standard Deviation of new series is
(a) 2 (b) –2
(c) 4 (d) None of these
166. Find the average of first 25 multiples of 5.
(a) 65 (b) 60
(c) 75 (d) None of these
167. If a, b, c, d, e are five consecutive odd integers, then their average is
abcde
(a) a + 5 (b)
5
(c) 5(a + b + c + d + e) (d) a + 4
168. A cricketer scored 180 runs in the first test and 258 runs in the second. How many runs
should be score in the third test so that his average score in three tests would be 230 runs.
(a) 219 (b) 242
(c) 334 (d) None of these
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169. In a coconut grove, (x+2) trees yield 60 nuts per year, x trees yield 120 nuts per year and
(x–2) trees yield 180 nuts per year. If the average yield per year per tree be 100, then the
value of x is –
(a) 4 (b) 6
(c) 8 (d) 2
170. The average age of 24 students and the class teacher is 16 years. If the class teachers age is
excluded, the average reduces by 1 year. What is the age of the class teacher?
(a) 50 years (b) 40 years
(c) 60 years (d) None of these
171. If r = 0, then
(a) There is a perfect correlation between x & y.
(b) x and y are not correlated.
(c) There is a positive correlation between x & y.
(d) Do not exist.
172. If Covariance (x, y) < 0; then the relation between two variable is
(a) Positive (b) Negative
(c) (a) or (b) (d) None of these
173. Consider the two regression lines 3x+2y = 26 & 6x + y = 31. Find the mean values of x and y.
(a) x = 4 & y = 7 (b) x = 7 & y = 4
(c) x = 5 & y = 6 (d) None of these
174. Consider the two regression lines 3x+2y = 26 & 6x + y = 31. Find the correlation coefficient
between x & y.
(a) 0.5 (b) –0.5
(c) 0.6 (d) None of these
175. Two regression lines are
(a) Reversible (b) not reversible
(c) cannot say (d) None of these
176. A problem of Mathematics is given to three students X, Y and Z whose chances of solving it
1 1 1
are , and respectively. Find the chance that the problem will be solved?
3 4 5
4 2
(a) (b)
5 5
3
(c) (d) None of these
5
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1 1 1
177. If P(A) = ; P(B) = and P(A∩B) = then the value of P(A / B) is
2 3 4
3 1
(a) (b)
4 4
2
(c) (d) None of these
5
1 1 1
178. If P(A) = ; P(B) = and P(A∩B) = then the value of P(A∩B) is
2 3 4
1 11
(a) (b)
3 12
(c) 1 / 12 (d) None of these
1 1 1
179. If P(A) = ; P(B) = and P(A∩B) = then the value of P (A∩B) is
2 3 4
5 7
(a) (b)
12 12
1
(c) (d) None of these
2
1 1 1
180. If P(A) = ; P(B) = and P(A∩B) = then the value of P (A∩B) is
2 3 4
1 3
(a) (b)
4 4
2
(c) (d) None of these
5
181. From the following probability distribution table, find E(x).
x: 1 2 3
1 1 1
f(x):
2 3 6
(a) 1 (b) 1.50
(c) 1.67 (d) None of these
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182. From the following probability distribution table, Find V(X)
x: 1 2 3
1 1 1
f(x):
2 3 6
(a) 0.5556 (b) 0.556
(c) 0.506 (d) None of these
183. In a box carrying one dozen of oranges, one third has become bad. If 3 oranges are taken out
from the box at random, what is the probability that at least one orange out of the three
oranges picked up is good?
54 1
(a) (b)
55 55
45
(c) (d) None of these
50
184. A and B are two candidates seeking admission in I.I.T. The probability that A is selected is
0.5 and the probability both A and B are selected is at most 0.3. Then the probability of B
getting selected is
(a) < 0.8 (b) < 0.9
(c) < 0.7 (d) None of these
185. One of the two events must happen. Given that the chance of one is two – third that of the
other. Then the odds in favour of the other
(a) 3:5 (b) 3:2
(c) 5:3 (d) None of these
186. If x be a poison variates with parameter 1; then find P(3<x<5) (Given: e–1 = 0.36783)
(a) 0.015326 (b) 0.15326
(c) 0.012326 (d) None of these
187. Find the probability that at least 5 defective bolts will be found in a box of 200 bolts. If it is
known that 2% of such bolts are expected to be defective (Given:
e–4 = 0.0183)
(a) 0.4717 (b) 0.3717
(c) 0.3017 (d) None of these
188. A man is dealt 4 spade cards from an ordinary pack of 52 cards. If he is given three more
cards, find the probability p that at least one of the additional cards is also a spade.
(a) 0.5718 (b) 0.3718
(c) 0.4718 (d) None of these
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189. The mean and variance of the poison distribution are equal.
(a) True (b) False
(c) Either (a) or (b) (d) None of these
190. If a variable x follows a poison law such that P(x = 1) = P(x = 2); then the variance of the
distribution is
(a) –2 (b) 2
(c) 2 (d) None of these
191. A random sample of the heights of 500 oranges was taken from a large consignement. 65
were found to be defective. Find Standard Error of the proportion of defectives.
(a) 0.015 (b) 0.15
(c) 0.017 (d) None of these
192. A random sample of the heights of 100 students from a large population of students in
a College having Standard Deviation of 0.75 ft. has an average height of 5.6 ft., Find
95% confidence limits for the average height of all the students of the College. (For
95%, Z = 1.96)
(a) 5.453, 5.747 (b) 16.453, 7.747
(c) 6.485, 7.647 (d) None of these
193. A sample of size 64 was drawn from a population consisting of 128 units. The sample
mean of the measurements on a certain characteristic was found to be 28. If the
population Standard Deviation is 4 then find the 96% confidence limit for the population
mean? (For 96%, Z = 2.05)
(a) 30.72, 27.32 (b) 27.272, 28.728
(c) 30.272, 32.728 (d) None of these
194. In a large consignment of oranges a random sample of 500 oranges revealed that 65 oranges
were bad. Find the 99.73% Confidence limit of bad ones? (For 99.73%, Z = 3)
(a) 8.5%, 17.5% (b) 0.85%, 0.175%
(c) 8%, 12% (d) None of these
195. Find the sample size such that the probability of the sample means differing from the
1
population mean by not more than th of the Standard Deviation is 0.95.
10
(a) 300 (b) 384
(c) 395 (d) None of these
196. The variance of 10 observations is 4, then their Standard Deviation is +2 or –2. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
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197. Find the variance of binomial distribution with n = 10, p = 0.3
(a) 2.1 (b) 3
(c) 7 (d) None of these
198. When the cost of living increases, the standard of living improves. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
⎛ σ ⎞
199. The 95% confidence limit for the sample mean
( x ) isμ±1.96⎜ ⎟.
This is
⎝ n ⎠
(a) True (b) False
(c) Either (a) or (b) (d) None of these
200. The mean and variance of Binomial distribution is 12. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
❖❖❖
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