NTA UGC NET/JRF Exam, Dec. 2021/June 2022 (Commerce) Shift-I

Total Questions: 100

1. Which of the following products would require intensive modification in the international arena?

Correct Answer: (b) Cosmetics
Solution:

A “cosmetic product” shall mean any substance or mixture intended to be placed in contact with the various external parts of the human body (epidermis, hair system, nails, lips and external genital organs) or with the teeth and the mucous membranes of the oral cavity with a view exclusively or mainly to cleaning them, Perfuming them, changing their appearance and/or correcting body odours and/or protecting them in good condition.
• Cosmetics require intensive modification in the international arena.

2. Match List I with List II :

List-I Management styleList-I Approach
(a) Task Management(i) Love conquers all approach
(b) Country Club Management(ii) One plus one can add upto three approach
(C) Impoverished Management(iii) Authority-obedience approach
(D) Team Management(iv) Speak no evil, hear no evil, see no evil approach

Choose the correct answer from the options given below :

(A)(B)(C)(D)
(a)iiiiivii
(b)iiviiiii
(c)iiiiivii
(d)iiiiviii
Correct Answer: (c)
Solution:The code of correct matching List-I with List-II
List-I Management styleList-II Approach
(a) Task Management(iii) Authority obedience approach
(b) Country club Management(iv) Love conquers all
(C) Impoverished Management(ii) Speak no evil, hear no evil, see no evil approach
(D) Team Management(i) One plus one can add up to three approach

3. Arrange the following in the winding up process of a company by tribunal in chronological sequence from the first to the last.

(A) Settlement of list of contributories and application of assets
(B) Submission of report by company liquidator
(C) Petition for winding up
(D) Direction of Tribunal on report of company liquidator
(E) Appointment of company liquidator
Choose the correct answer from the options given below:

Correct Answer: (c) (C),(E),(B),(D),(A)
Solution:Chronological sequence from the first to the last of a winding up process of a company by tribunal :

(C) Petition for winding up
                        ↓
(E) Appointment of company liquidator
                        ↓
(B) Submission of report by company liquidator
                        ↓
(D) Direction of Tribunal on report of company liquidator
                        ↓
(A) Settlement of list of contributories and application of assets
Therefore option (c) is the correct Answer.

4. Which of the following statements are false regarding price and output determination under perfect competition?

(A) A firm is a price taker
(B) In the long run, a firm is in equilibrium when its AR = MR = LAC = LMC
(C) A firm is in equilibrium in the short run only when its AC = AR = MR = MC
(D) A firm reaches its shut-down point when price goes below its AC
(E) A firm fixes the price of its products when AR = MR
Choose the most appropriate answer from the options given below:

Correct Answer: (b) (C),(D),(E) only
Solution:

Following are the characteristics of perfect competition:
• A firm is a price taker.
• In the long run, a firm is in equilibrium when its AR = MR = LAC = LMC
• Large numbers of buyers and sellers in the market
• Free entry and exit of firms in the market
• Buyers and sellers should possess complete knowledge of the market
• No Price control
• Perfect competition among buyers and sellers.
Therefore, option (c) (d) are not the characteristics of perfect competition.

5. Who among the following economists suggested the Sales Revenue Maximization as an alternative objective of a business firm?

Correct Answer: (d) W.J. Baumol
Solution:

W.J. Baumol suggested:-
Sales Revenue Maximization as an alternative goal to profit maximization.
Managers only ensure acceptable level of profit, pursuing a goal which enhances their utility.

6. Match List-I with List-II

List-I Shape of revenue curve of the firmList-II Market structure
(A) Kinked revenue curve(i) Monopolistic competition
(B) Infinitely elastic straight line curve(ii) Perfect competition
(C) Relatively less elastic curve(iii) Oligopoly
(D) Relatively high elastic curve(iv) Monopoly

Choose the correct answer from the options given below :

(A)(B)(C)(D)
(a)iiiiiivi
(b)iviiiiii
(c)iiiiviii
(d)iiiiiiiv
Correct Answer: (a)
Solution:
List-IList-II
Shape of revenue curve of the firmMarket structure
(A) Kinked revenue curve(iii) Oligopoly
(B) Infinitely elastic straight line curve(ii) Perfect competition
(C) Relatively less elastic curve(iv) Monopoly
(D) Relatively high elastic curve(i) Monopolistic competition

7. Which of the following provident funds is set up under Provident Fund Act, 1952?

Correct Answer: (b) Recognized Provident Fund
Solution:

Recognized provident Fund is set up under Provident Fund Act, 1952. It is a provident fund which is recognized by the commissioner of income-tax under the Income Tax Act.
To be recognized, an organization of 20 or more members shall invest fund as per the guidelines of PF Act, 1952, and can get an approval from the PF commissioner of Income tax.

8. Which one of the following measures of central tendency is not affected by the presence of extreme values in the data of the distribution?

Correct Answer: (c) Positional average
Solution:

Positional Averages determine the position of variables in a given sets of data. "Median and mode are positional averages. These are calculated by observation of a series and not through the extreme values of the series which. Therefore, positional Average not affected by the extreme values of a series.

9. In comparison to domestic equity investment foreign equity investment would be preferred if it offers in which of the following situations?

Correct Answer: (b) Lower dividend yield and lower rate of capital appreciation
Solution:

In comparison to domestic equity investment foreign equity investment would be preferred if it offers lower dividend yield and lower rate of capital appreciation.

10. Which of the following may be the reasons for a material usage variance?

(A) Negligence in the use of materials
(B) Changes in basic process of materials
(C) Poor or improper machine handling
(D) Wastage due to inefficient production methods
(E) Change in product design requiring usage different from the standard
Choose the most appropriate answer from the options given below:

Correct Answer: (c) (A),(C),(D),(E) only
Solution:

Reason for material usage variance:-
• Negligence in the use of material
• Poor or improper machine handling
• Wastage due to inefficient production methods.
• Change in product design requiring usage different from the standard
• Careless handling of materials by employees
• Wrong mixture of materials and other.