NTA UGC NET/JRF Exam, December 2022 (Commerce) Shift-II

Total Questions: 100

1. Which of the following is the right description of the "Duty Free Import Authorization (DFIA)" Scheme?

Correct Answer: (b) Exemption in respect of custom duty, additional duty, education cess and anti-dumping or safeguard duties for inputs used in exports
Solution:

Duty Free Import Authorization (DFIA):
A duty Free Import Authorization (DFIA) is issued to allow duty free import of inputs which are used in the manufacture of an export product, making normal allowance for wastage, and energy, fuel, catalyst etc. many are utilized in the course of their use to obtain the export product.
The Director General of Foreign Trade (DGFT), by means of Public Notice and also public interest, can exclude any product(s) from the scheme. This scheme was in force from 1st May, 2006.

2. An Indian company receiving investment from outside India for issuing share/convertible debentures/preference shares under the FDI Scheme should report the details of the inflow to the RBI. What is the time for reporting these details to RBI?

Correct Answer: (c) Within 30 days from the date of receipt
Solution:

An Indian company receiving investment from outside India for issuing shares/convertible debentures/preference shares under the FDI scheme should report the details of the inflow to the RBI within 30 days from the receipt of such investment.

3. Which one of the following theories of attitude change states that changes in opinions can result into an attitude change?

Correct Answer: (c) Reinforcement Theory
Solution:

Reinforcement Theory: The main aspect of the reinforcement theory is that when behaviour is reinforced, then it will be repeated and used again and if the behaviour is not reinforced, then that behaviour will continue the same and not change therefore if this behaviour is currently bad, it will stay that way, unless something is done.
The Reinforcement Theory states to look into punishment and reward for behaviour. This is what skinner started to do, saying that punishment was needed to make sure people stay on the right track and produce work which is of an adequate quality.
There are two types of Reinforcement :
(i) Positive Reinforcement
(ii) Negative Reinforcement
Hence, Reinforcement theory of attitude change states that changes in opinion can result into an attitude change.

4. According to Porter's diamond, which of the following is NOT a factor of national competitive advantage?

Correct Answer: (c) Bargaining power of buyers
Solution:

• Porter's Diamond is an economic model describing the factors that give a business an edge over its competitors in a particular region.
• American academician Michael Eugene Porter developed the Porter Diamond model.
• It explains how companies with a national competitive advantage continue to enjoy the same in the international markets too.
• The model is based on a unique framework consisting of four factors - company strategy, structure and Rivalry; factor condition; Related and supporting Industries; and demand conditions.
• The role of government and chance also impact the competitive advantage of a business.
According to porter's diamond model, following are the factors of national competitive advantage:
(i) Relating and supporting industry.
(ii) Firm strategy, structure and rivalry.
(iii) Demand conditions.

5. X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z as a new partner with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners.

Correct Answer: (a) 12 : 8 : 5
Solution:

6. At the break-even point, contribution is equal to

Correct Answer: (c) Fixed cost 
Solution:

At the break-even point, the contribution margin equals the total fixed cost. The break-even margin is a ratio that shows the gross-margin factor for a break-even condition. The formula is total expenses divided by net revenues multiplied by 100 to get a percentage. Net revenues are the difference between unit price and variable costs per unit.
Hence option (c) is correct answer.

7. Which one of the following is NOT true?

Correct Answer: (d) Heavy expenditure on advertisement campaigns in order to introduce a new product in the market
Solution:

Capital Expenditure are funds used by a company to acquire, upgrade and maintain physical assets such as property, plants, buildings, technology or equipment. Making capital expenditure on fixed assets can include repairing a roof if the useful life of the roof is extended, purchasing a piece of equipment or building a new factory etc.
While Heavy advertisement expenditure in order to introduce a new product in the market is deferred revenue expenditure.

8. As per the information given below, what is the correct material yield variance?

Standard input = 100 kg
Standard yield = 90 kg
Standard cost per kg of output = Rs. 20
Actual input = 200 kg
Actual yield = 182 kg
Actual cost per kg of output = Rs. 19

Correct Answer: (a) Rs. 40 (Favourable)
Solution:

Given, Standard input = 100 kg.
Standard yield = 90 kg
Standard cost per kg of output = Rs.20.
Actual input = 200 kg.
Actual yield = 182 kg
Actual cost per kg of output = Rs.19
Material yield variance = (Actual yield − Standard yield) × Standard output price.
MYV = (AY − SY) × SOP
So, MYV = (182 kg − 180 kg) × 20/kg = (2 kg × 20)
MYV = 40 (Favourable)

9. When the negative income effect overwhelms the positive substitution effect such that the demand curve is positively sloped, the commodity in consumption is described as;

Correct Answer: (c) Giffen good 
Solution:

When the negative income effect overwhelms the positive substitution effect such that the demand curve is positively sloped, the commodity in consumption is described as giffen goods.
A Giffen good is a low income, a non-luxury product that defies standard economic and consumer demand theory.
Demand for Giffen goods rises when the price rises and falls when the price falls.

10. In the extreme case of perfect price discrimination, the entire consumer surplus in the market goes:

Correct Answer: (b) to monopoly producer
Solution:

Price discrimination is a selling strategy that charges consumers different prices for the same product or services based on what the seller thinks they can get the customer to agree to. In the extreme case of perfect price discrimination, the entire consumer surplus in the market goes to monopoly producer.