NTA UGC NET/JRF Exam, Dec. 2019 Commerce (Evening-Shift)

Total Questions: 100

11. Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): In the case of short run cost behaviour, MC curve intersects AC curve at its minimum
Reason (R): While AC continues to decrease, MC begins to rise. Also, when AC is at its minimum, it is neither increasing nor decreasing. It is constant when AC is constant, it is equal to MC at the point of intersection

Choose the correct option from those below 

Correct Answer: (a) Both (A) and (R) true and (R) is the correct explanation of (A)
Solution:

Assertion (A) :- cost in the short run-
* Short -run costs curves tend to be U-shaped because of diminishing return.
* in the short run capital is fixed. After a certain point, increasing extra workers leads to declining Productivity
* Marginal cost always passes through the lowest point of the average cost curve.
Therefore, from me avove expranauon Assertion (A) is true.
Reason (R) : while AC continues to decrease, MC begins to rise. Also, when AC is at its minimum, it is neither increasing nor decreasing it is constant when AС
is constant, it is equal to MC at the point of intersection,
Explanation :
when MC is equal to AC i.e. when MC and AC curves interact each other at point A, AC is constant and at its minimum point.
- Therefore, from the above explanation, Reason (R) is correct, and R is the correct explanation of (A).

12. Arrange the steps to e-filing of Income Tax Return in correct sequence:

(A) Register yourself
(B) Verify ITR V
(C) Select the requisite form
(D) Fill form and upload
Choose the correct option:

Correct Answer: (a) (A) → (C) → (D) → (B)
Solution:

Following are the 6 steps for E-filling Income-Tax return.
STEP-1- Register yourself
STEP-2- choose how you want to e-file
STEP-3-Select the requisite form
STEP-4- keep the document ready
STEP-5- Fill the form and upload
STEP-6- verify ITR-V

13. Which of the following is the odd one out?

Correct Answer: (c) Future goods
Solution:

Specific goods, Unascertained goods, Ascertained goods are available with the seller and are immediately transferred to the buyer once the agreement is reached. But future goods are not available with seller and are not immediately transferred to the buyer.

14. In e-commerce, one of the key design elements of an effective website-community refers to

Correct Answer: (b) The way site enables user to user communication
Solution:

Electronic commerce :- e-commerce is a term that conceptualize commerce or trading using the internet. 

Electronic commerce is a term for any type of business, or commercial transaction that involves the transfer of information across the internet.

It covers a range of different types of businesses from consumer- based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations.

It is currently one of the most important aspects of the internet to emerge.

E- commerce allows consumers to electronically exchange goods and services with no barriers of time or distance.

15. According to Sale of Goods Act, which two of 320 the following are defined as 'goods'?

(A) Moveable property
(B) Growing crops
(C) Actionable claims
(D) Book debt
Choose the correct answer from the following options:

Correct Answer: (c) (A) and (B)
Solution:

Sale of Goods Act 1930- Goods are any merchandise or possession. An important clause in the contract for sale goods is described in section 2(7) as:
(a) It is a moveable property (except for money and actionable claims)
(b) Stocks and shares
(c) Growing crops, grass, standing timber
(d) The things that are attached to the land but are agreed to be served before the sale. Thus, we conclude here that goods are moveable properly barring money and actionable claims.

16. Companies that are becoming skilled in Customer Relationship Management (CRM) focus on:

Correct Answer: (c) Developing programs to attract and retain the right customers and meeting the individual needs of valued customers
Solution:

Customer Relationship Management (CRM) is a business strategy that enables organizations to get closer with their customer to better serve their needs, improve customer service enhance customer satisfaction and there by maximize customer loyalty and retention.

17. In the context of the two statements above to pricing strategy, which one of the following options is correct?

Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer's products within a specified period
Reason (R): The same product is priced differently at different times.

Correct Answer: (c) (A) is correct but (R) is not correct
Solution:

Assertion(A) - Explanation-
Cash rebate is an offer given to consumers for a cash discount when they purchase a consumer good.

Hence a cash rebate can be thought of as a discount coupon.
Usually, the rebate is offered by either the manufacturer of the product or the retailer.
Thus, the assertion is correct.

Reason (R)- Explanation-
Automobile product have a highly elastic demand.
Thus, the consumer will wait for the price to fall if the product is priced differently at different times.

Consumer goods are generally priced at The Maximum Retail Price (MRP).
A maximum Retail price is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh.
Thus, the reason is incorrect.

18. A production function expressed as

Where L = labour, K = Capital and A, α and ẞ are three parameters is called

Correct Answer: (a) Constant elasticity substitution function
Solution:

Constant elasticity substitution function :-
The CES production function is a Neoclassical Production function that displays constant elasticity of substitution in the words, the Production technology
has constant percentage change factor (e.g. Labour and capital) properties due to a percentage change in the marginal rate of technical substitution. The two factors (capital, Labour) CES production Function introduced by Slow, and later made Popular by Arrow, chenery, minhas, and Slow are -

19. What are the drivers of globalization?

(A) Population mobility especially of labour
(B) Financial flows
(C) Exporting
(D) Assembly operations 
Choose the correct answer from the following 

Correct Answer: (c) (A) and (B)
Solution:

Drive of Globalization:-
- Economic Globalization stand for the economic inter connectedness of countries with the global economic as a whole.

-This interdependence relates both to the exchange of factor of production (Labour, capital technologies know-now) and the exchange of products (material goods and services finished and unfinished products, consumer and capital goods)

There are three main drivers for economic globalization and its different characteristics such as trade, international capital markets, currency markets, migration and more:

20. Which two of the following are correct in terms of rate of tax deduction at source (TDS)?

(a) Income by way of winning from the horse race @ 30%
(b) Insurance Commission @ 10%
(c) Rent of Plant & Machinery @ 5%
(d) Rent of furniture @ 5%
Choose the correct option from the following:

Correct Answer: (c) (A) and (D)
Solution:

TDS -(Tax Deduction at source)- According to the Income tax Act 1961, a specific amount is reduced when a certain payment like salary, commission, rent, Interest, professional fees, etc.  is made. The person who makes the payment deducts tax at source, and the person who receives a payment Vincome has the liability to pay tax. It lowers tax evasion because tax will be collected at the time of making a payment.
TDS Rates under section 194(i):
Rate of the tax deduction depend on the nature of payment and are given below