NTA UGC NET/JRF Exam, June 2023 (Commerce) Shift-I

Total Questions: 100

1. In case of presence of outliers in a data set, which of the following can better measure the central tendency?

A. Mode
B. Trimmed Mean
C. Arithmetic Mean
D. Median
E. Harmonic Mean
Choose the correct answer from the options given below:

Correct Answer: (d) B and D only
Solution:

In case of presence of outliers in a data set Trimmed mean and median can better measure the central tendency.
An outlier is an observation that lies at an abnormal distance from other value in a random sample of population. Outlier are important because they can have a large influence as statistics derived from data set. Outlier affect the mean value of data set but have little effect on the median or mode of a given set of data.

2. From the following information you are required to compute Return on Total Capital employed.

Total Capital employed.
Net Profit Rs. 1,00,000
Provision for tax Rs. 1,00,000
Income from Investment Rs. 10,000
Fixed Assets Rs. 4,50,000
Current assets Rs. 1,50,000
Interest on debenture Rs. 10,000
Reserves Rs. 1,00,000

Correct Answer: (d) 40%
Solution:

3. Which one of the advertising planning strategies is suitable for cars and appliances?

Correct Answer: (a) Informative strategy

4. A population has a mean of 200 and standard deviation of 50. Suppose a sample random sample of size 100 is selected then the probability that the sample mean will be ± 5 of the population mean is =

Correct Answer: (d) 0.6826
Solution:

5. According to the theory of contestable markets, vigorous competition can take place even among few sellers if ______ and ______.

A. Product is differentiated
B. Demand is infinitely elastic
C. Entry into the market is absolutely free
D. There are strong entry-exit barriers
E. Exit from the market is entirely costless
Choose the correct answer from the options given below:

Correct Answer: (d) C and E only
Solution:

Contestable Market- A contestable market allows the free entry and exit of firms. Potential entrants need to recognize a fleeting profit opportunity because they can enter, pocket their profits before prices change and leave without incurring any cost if the environment turns hostile. Its susceptibility to hit and run entry is the essential characteristic of a contestable market. The firms or businesses here need not be small in size, numerous, autonomous in their judgment, or able to create uniform goods. On the contrary, it’s the only characteristic of perfect competition that contestable market may share. In other words, a completely competitive market is also necessary for being a perfectly contestable market.

6. Which of the following one considered as || SERVQUAL Model: 5 Gaps supply factors affecting the flow of Foreign Direct Investment (FDI) :

A. Customer Access
B. Economic Priorities
C. Resource Availability
D. Avoidance of Trade Barrier
E. Logistics
Choose the most appropriate answer from the options given below:

Correct Answer: (c) C and E only
Solution:

 Foreign Direct Investment (FDI) means companies or individuals purchase capital or acquire ownership or control over assets in the foreign country.
Factors affecting foreign direct investment are:-

  1. Resource Availability
  2. Logistics
  3. Wages Rate
  4. Tax Rate
  5. Labour skills
  6. Size of economy/Potential for growth.
  7. Political Stability

7. Which committee had recommended a comprehensive framework of reform in the insurance sector?

Correct Answer: (c) Malhotra Committee (1993)
Solution:

A Committee was set up in 1993 under the Chairmanship of R.N. Malhotra former Governor of the Reserve Bank of India to make recommendation for reforms in the insurance sector.
The Malhotra committee recommended introduction of a concept of "professionalism" in the insurance sector to make it a strong case for paving the way for foreign capital.

8. Which of the following service gaps as per the SERVQUAL approach in the logical sequence.

A. The gap between service quality specifications and service delivery
B. The gap between management perception's expectations and management perception
C. The gap between perceived service and expected service
D. The gap between management perception and service quality specification
E. The gap between service delivery and external communications
Choose the correct answer from the options given below :

Correct Answer: (b) B, D, A, E, C
Solution:

SERVQUAL Approach- The SERVQUAL model was created by researchers A. Parasuraman, Valarie Zeithaml and Leonard L. Berry in 1985. It measures and drive quality in the service and retail sector. The SERVQUAL model is a framework for measuring service quality and customer Satisfaction through Five dimension:- Reliability, Responsiveness, Assurance, Tangibles and empathy. Hence it is also known as the RATER model.

9. Which one of the following values is not a part of OCTAPACE framework?

Correct Answer: (b) Extension
Solution:

OCTAPACE- OCTAPACE culture includes ethics, values, beliefs, attitudes norms, ethos climate, environment and culture.
The Eight Dimensions of OCTAPACE are
O - Openness
C - Confrontation
T - Trust
A - Authenticity
P - Proactive
A - Autonomy
C - Collaboration
E - Experimenting

10. Substitution effect is usually larger than the income effect in real world because

Correct Answer: (a) Consumer usually spends only a small proportion of income on any one commodity
Solution:

 Consumer usually spends only a small proportion of income on any one commodity.
The "Substitution effect" is an effect due to the adjustment of the cost of a service or product that causes customers to substitute more extravagant item for less expensive ones.
The "income effect" refers to the adjustment of interest in a product or service caused by the adjustment of a customer real income.

  • Lowering the price of a product makes it cheaper and thus substitutes which attracts more customers and causes the products or services to become more desirable.
  • Increase in the price of the product since the other product are similarly cheaper, customers will switch to other product.
    The substitution effect is greater than the income effect because the amount of money spent on any one commodity is less.