UGC NET/JRF EXAM, (MANAGEMENT) June 2019

Total Questions: 50

1. The income or gain expected from the second best use of resources lost due to the best use of the scarce resources is known as

Correct Answer: (b) Opportunity cost
Solution:The income or gain expected from the second best use of resources lost due to the best use of the scarce resources is known as Opportunity cost. Opportunity cost is the cost of giving up one opportunity in order to take another one the 'next best alternative' that must be given up comeses with a cost.

2. According to which of the following approaches of decision making, a manager picks up a course of action that is satisfactory or good enough under the circumstances?

Correct Answer: (b) The Bounded Rationality Approach
Solution:Bounded rationality is the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their mind, and the finite amount of time they have to make a decision

3. Match List-I with List-II

List-IList-II
(A) Goal(i) Basic function or task of an organisation
(B) Strategy(ii) End towards which an activity is directed
(C) Mission(iii) Adoption of course of action to achieve long term objectives
(D) Rule(iv) Actions or non-actions allowing no discretion

Choose the correct option from those given below:

Correct Answer: (c) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Solution:The code of Correct matching of list I with list II -
List-IList-II
(a) Goal(ii) End towards which an activity is directed
(b) Strategy(iii) Adoption of course of action to achieve long term objectives
(c) Mission(i) Basic function or task of an organisation
(d) Rule(iv) Actions or non-actions allowing no discretion

4. Assertion (A): Corporate governance is an important instrument of investor protection.

Which one of the following options is correct?

Correct Answer: (a) Both (A) and (R) are correct and (R) is the right explanation of (A)
Solution:Assertion (A): Corporate governance is an important instrument of investor protection. Therefore, Assertion (A) is the correct statement.
Reason (R) : Strong corporate governance is indispensable to resilient and vibrant capital markets. Therefore, Reason (R) is the also correct and (R) is the right explanation of (A)

5. Match List-I with List-II

List-I (Decision making Bias)List-II (Explanation)
(A) Anchoring Bias(i) Represents a case of selective perception
(B) Escalation of commitment(ii) Refers to our staying with a decision even if there is clear evidence it's wrong
(C) Confirmation Bias(iii) Tendency to believe falsely after the outcome is known
(D) Hindsight Bias(iv) Tendency to fixate on initial information and fail to adequately adjust for subsequent information

Choose the correct option from those given below

Correct Answer: (b) (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
Solution:The code of Correct matching of list I with list II
List-IList-II
(a) Anchoring Bias(iv) Tendency to fixate on initial information and fail to adequately adjust for subsequent information
(b) Escalation of commitment(ii) Refers to our staying with a decision even if there is clear evidence it's wrong
(c) Confirmation Bias(i) Represents a case of selective perception
(d) Hindsight Bias(iii) Tendency to believe falsely after the outcome is known

6. Which one of the following is true for a monopoly firm that operates at the level of output where MR = MC?

Correct Answer: (a) If AR > AC, there is abnormal profit for the firm
Solution:If AR > AC, there is abnormal profit for the monopoly firm that operates at the level of output where MR = MС.

7. Which one of the following demand forecasting methods is NOT a survey method?/

Correct Answer: (c) Graphical method
Solution:Graphical method of demand forecasting is not a survey method. It is a statistical method used in forecasting the future sales of an organization with the help of an graph.

The sales data is plotted on a graph and a line is drawn on plotted points and a free hand curve is drawn. Whereas Delphi Method, End use method and Complete enumeration method in the option are survey method.

8. Match List-I with List-II

List-I (Market structure)List-II (Feature)
(A) Perfect competition(i) Product is differentiated
(B) Monopoly(ii) Homogeneous or differentiated products
(C) Monopolistic competition(iii) Factors of production are freely mobile between firms
(D) Oligopoly(iv) Legal restrictions on entry of new firms

Choose the correct option from those given below:

Correct Answer: (b) (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
Solution:The code of Correct matching of list I with list II
List-I (Market structure)List-II (Feature)
(a) Perfect competition(iii) Factors of Production are freely mobile between firms.
(b) Monopoly(iv) Legal restrictions on entry of new firms
(c) Monopolistic Competition(i) Product is differentiated
(d) Oligopoly(ii) Homogeneous or differentiated product

9. Which one of the following is not correct for National Income?

Correct Answer: (a) Gross National Product (GNP) > Gross National Income (GNI)
Solution:Gross National product (GNP) > Gross National Income (GNI) is not correct for National Income.
GNP (Gross National Product) = GDP + net property income from abroad. (This net income from aboard includes dividends, interest and profit.
GNI (Gross National Income) = (Similar to GNP) includes the values of all goods and services produced by nation whether in the country or not.

10. For which of the following types of goods the demand increases rapidly with the increase in consumer's income but slows with further increases in income?

Correct Answer: (c) Normal goods
Solution:The demand of Normal goods increases rapidly with the increase in consumer's income but slows down with further increase in incomes. Thus if exhibits positive income effect and it follows law of demand.