CPT Mock Test 2 Iind Session Duration : 2 Hours

CPT Mock Test – 2 IInd Session Duration : 2 Hours

Test Booklet No. – 110013 Date: - 08.06.2015 Total Marks : 100

(1)Which one of the following agencies in India is responsible for computation of national income?

(a) NCAER

(b) CSO

(d) RBI

Ans. b

Explanation:

Central Statistical organization is responsible for computation of national income.

(2)DFEC stands far:

(a) Duty Freedom Export Credit

(b) Duty Free Export Credit

(d) Duty Free Exchange Credit

Ans. b

Explanation:

DFEC stands for Duty Free Export Credit.

(3)Consumer surplus means ______

(a) The area inside the budget line

(b) The area between the average revenue and marginal revenue curves

(d) None of the above

Ans. c

Explanation:

As it is difference between marginal utility & price i.e. consumer surplus = what a consumer ready to pay - what he actually pays.

(4)The bargaining power of labour is generally _____:

(a) Weak

(b) Strong

(d) Can't say

Ans. a

Explanation:

Since labour doesn't have previous accumulated capital hence he has weak bargaining power.

(5)______depicts complete picture of consumer tastes and preferences.

(a) Budget line

(b) Average cost curve

(d) Marginal revenue curve

Ans. c

Explanation:

Indifference curve is based on consumer preference and indifference map consists of various combinations of two goods which gives equal satisfaction.

(6)With a given supply curve, a decrease in demand causes:

(a) An overall decrease in price but an increase in equilibrium quantity

(b) An overall increase in price but a decrease in equilibrium quantity

(d) An overall decrease in price and a decrease in equilibrium quantity

Ans. d

Explanation:

Quantity demanded & supplied

(7)Generally supply curve of industrial products is

(a) Positively sloped

(b) Negatively sloped

(d) Parallel of to Y axis

Ans. a

Explanation:

Law of supply states that price increase supply also increases & vice versa.

(8)Which of the following statements is incorrect?

(a) Both AP and MP can be calculated from T.P.

(b) When AP rises then MP>AP

(d) When AP falls, MP also falls but MP>AP

Ans. d

Explanation:

As when AP falls, MP also falls but MP < AP

(9)Production function refers to a

(a) Relationship between Output and cost

(b) Physical relationship between input and output

(d) None of the above

Ans. b

Explanation:

Production function refers to the physical relationship between input & output.

(10)Labour intensive technique would get chosen in a :

(a) Labour surplus economy

(b) Capital surplus economy

(d) Developing economy

Ans. a

Explanation:

In labour surplus economy labour will be available in abundance.

(11)Which of the following is considered as production in economics?

(a) Stage performance.

(b) Tilling of soil.

(d) Preventing a child from an accident.

Ans. b

Explanation:

Tilling of soil leads to production as it turns into output.

(12)A firm encounters its “shutdown point” when:

(a) Average total cost equals price at the profit-maximizing level of output.

(b) Average variable cost equals price at the profit-maximizing level of output.

(d) Marginal cost equals price at the profit-maximizing level of output

Ans. b

Explanation:

As shut down is the point where firm will not be able to recover even its average variable cost.

(13)The economist who gave cobb - douglas production function was an ______:

(a) Japanese

(b) German

(d) American

Ans. d

Explanation:

Since the economist who gave cobb - douglas production function was an American.

(14)Which of the following is not the name of LAC curve?

(a) Planning curve

(b) Enveloping curve

(d) None of the above

Ans. c

Explanation:

LAC curve is also known as Planning Curve and Enveloping Curve.

(15)Which of the following is incorrect?

(a) The shape of the average cost and marginal cost curve is U’

(b) The AR and MR curves of a firm under perfect competition are parallel to X- axis.

(d) At Equilibrium MC=MR

Ans. c

Explanation:

Since AR=MR is not the condition of equilibrium point and equilibrium occurs at MC = MR

(16)Which is the other name given to Average revenue curve?

(a) Profit curve

(b) Demand curve

(d) Income curve

Ans. b

Explanation:

As they both have same characteristic i.e. downwards sloping curve.

(17)In a perfect competitive market :

(a) Firm is the price-giver and industry is the price taker

(b) Firm is the price taker and industry is the price giver

(d) None of the above

Ans. b

Explanation:

Industry determines price by intersection of demand and supply and firm adopts the price decided by industry.

(18)The following table provides a breakdown of a country’s population (millions):

Total population / 114 / Children (below the working age) / 18
Unemployed people looking for a job / 9 / Full-time students (not looking for a job) / 2
Retired people / 14 / Employed people / 63
People confined to correctional institutions / 1 / Other adults not in the labour force / 7

Based on the information in the table, the country’s unemployment rate is

(a) 7.9%

(b) 12.5%

(d) 22.2%

Ans. b

Explanation:

(19)MGNREGS Scheme gives guarantee of at least ____ days to rural households.

(a) 55

(b) 100

(d) 200

Ans. b

Explanation:

Since MGNREGS Scheme gives guarantee of at least 100 days to rural households.

(20)India has a long coast line of:

(a) 7517 Km, 12 major ports and 200 minor ports

(b) 7518 Km, 12 major ports and 87 minor ports

(d) 7577 Km, 12 major ports and 187 minor ports

Ans. a

Explanation:

India has a long cost line of 7517 Kms, 12 major ports & 200 minor ports.

(21)TRIPs stand for:

(a) Trade Related Intellectual Property Rights

(b) Transaction Related Intellectual Property Rights

(d) Trade Related International Property Rights

Ans. a

Explanation:

TRIPS stands for Trade Related Intellectual Property Rights.

(22)Which of the following has not been a part of the land reforms programme in India?

(a) Ceiling an holding

(b) Consolidation of holding

(d) Agricultural holding tax

Ans. d

Explanation:

Since it is a part of taxation pattern in India.

(23)The programme of industrialization during second five year plan was based on the model given by ______.

(a) The Britishers in India

(b) V.V. Bhatt

(d) Vera Anstey

Ans. c

Explanation:

P.C. Mahalanobis focused on set up of capital goods.

(24)According to NSSO the reference period used in URP is :

(a) 30 days

(b) 365 days

(d) 15 days

Ans. a

Explanation:

Since according to NSSO the reference period used in Uniform recall period is 30 days.

(25)Liberalisation process in India was initiated by

(a) Yashwant Singh

(b) Manmohan Singh

(d) Both (a) & (b)

Ans. b

Explanation:

He was the former Finance Minister.

(26)Restriction (s) on banking sector before economic reforms is/are

(a) Quantitative restrictions on credit flows

(b) High reserves requirements under CRR.

(d) All of the above.

Ans. d

Explanation:

As they all are in pre-economic reform period

(27)The objective of selective credit controls is mainly to :

(a) Selectively allocate credit to commercial banks

(b) Selectively allocate credit among borrowers

(d) Regulate the quantity of credit created by commercial banks

Ans. b

Explanation:

As qualitative credit control measure relates to the distribution of credit among selective groups.

(28)The banks are required to maintain a certain ratio between their cash in hand and total assets, this is called

(a) CLR (Central Liquidity Reserve)

(b) SLR (Statutory Liquidity Ratio)

(d) CBR (Central Bank Reserve).

Ans. b

Explanation:

The part of cash which is kept by bank itself is known as statutory liquidity ratio.

(29)Deposit mobilization is highest in :

(a) Maharashtra

(b) Tamil Nadu

(d) Rajasthan

Ans. a

Explanation:

Since in Maharashtra deposit mobilization is 22%.

(30)If a firm’s output is zero, then

(a)AFC will be positive

(b)TFC will be zero

(c)Both of (a) and (b)

(d)None of (a) and (b)

Ans. (a)

Explanation:

Since TFC is there even if the firm's output is zero.

(31)Which curve is never U-shaped?

(a)TFC curve

(b)AVC curve

(d)MC curve

Ans. a

Explanation:

Since the shape of TFC is horizontal.

(32)From the following details, find out the average variable cost of 10 units:

OUTPUT : 01020

Total cost :Rs. 200Rs. 400Rs. 800

(a)Rs. 40

(b)Rs. 20

(c)Rs. 200

(d)Rs. 400

Ans. b

Explanation: AVC = TVC / Q

TVC = TC – TFC

TC = 400

TFC = 200

Hence TVC = 200,AVC = 200/10 = 20

(33)The total cost incurred for 10 units is rs. 400 and 20 units is Rs. 800.Find the marginal cost.

(a)Rs. 400

(b)Rs. 40

(c)Rs. 200

(d)Rs. 20

Ans. b

Explanation: MC =

MC =

(34)In the long-run in perfect competition a firm have

(a)Losses

(b)Must earn super normal profits

(c)Normal Profit

(d)None of these

Ans. c

Explanation:

Since in the long-run in perfect competition a firm have normal profit.

(35)Oligopoly having identical products is:

(a)Pure oligopoly

(b)Imperfect oligopoly

(c)Price leadership

(d)Collusion.

Ans. a

Explanation:

Since in pure oligopoly there are identical products e.g. Aluminum

(36)National Bank for Agriculture and rural development is______.

(a)Co-operative bank

(b)Commercial bank

(c)Apex bank of agriculture and rural development

(d)Subsidiary bank of SBI

Ans. c

Explanation:

Since NABARD is the Apex bank of agriculture and rural development established in 1982.

(37)What is the nature of income tax?

(a)Direct and Progressive

(b)Indirect and progressive

(c)Indirect and regressive

(d)Direct and regressive

Ans. a

Explanation:

Since direct tax is according to the income hence it is progressive.

(38)Which of the following state has the highest literacy ratio?

(a)Goa

(b)Tamil nadu

(c)Kerala

(d)Uttar Pradesh

Ans. c

Explanation:

Since Kerala has the highest literacy ratio of 92%.

(39)The creation of Indian Postal Department happened in.

(a)1837

(b)1857

(d)1751

Ans. a

Explanation:

Since the creation of Indian Postal Department happened in 1837.

(40)______provides crop storage facility in India.

(a)IDBI

(b)ICICI

(c)FCI

(d)IFCI

Ans. c

Explanation:

Since FCI provides crop storage facility in India.

(41)Devaluation Means:

(a)To reduce the value of home currency in comparison of a external currency

(b)To appreciate the value of home currency

(c)To constant the value of home currency

(d)None of the above

Ans. a

Explanation:

Since devaluation means to reduce the value of home currency in other currency.

(42)______is a systematic record of all transactions of a county in a year.

(a)Balance of payment

(b)Balance of Trade

(c)Current account of balance of payment

(d)None.

Ans. a

Explanation:

Since balance of paymentis a systematic record of all transactions of a county in a year.

(43)______is known as privatization.

(a)Divestment

(b)Making a private sector as a public

(c)Liberalization

(d)All of the above

Ans. a

Explanation:

Since Divestment is a method of doing privatization.

(44)WB replaced which organization in 1945?

(a)IBRD

(b)GATT

(c)IMF

(d)None of these

Ans. d

Explanation:

(45)The nationalization of 6 commercial banks happened in:

(a)1944

(b)1949

(d)1980

Ans. d

Explanation:

Since in 1980 nationalization of 6 commercial banks was done.

(46)Which of the following is not the objective of RBI?

(a)Lendor of last resort

(b)Banker’s Bank

(c)lending to the public

(d)Banker to the Government

Ans. c

Explanation:

Since RBI never lend to the public directly.

(47)The Quantitative measure of credit regulation by RBI is:

(a)Bank Rate policy

(b)Open market operations

(c)Variable Reserve Ratio

(d)All of the above

Ans. c

Explanation:

Since variable reserve ratiois the quantitative measure of credit regulation by RBI.

(48)At present in India a post office serves______average persons.

(a)7069

(b)7175

(d)7275

Ans. b

Explanation:

Since in India a post office serves 7175 average persons.

(49)At the time of independence ____percent of population was dependent on agriculture.

(a)72 percent

(b)58 percent

(d)62 percent

Ans. a

Explanation:

Since at the time of independence 72 percent of population was dependent on agriculture.

(50)The full fledged family programme was started in the year _____ :

(a)1956

(b)1966

(d)2009

Ans. b

Explanation:

Since the full fledged family programme was started in the year 1966 by the government of India.

(51)Evaluate

(a)

(b)

(c)

(d)None

Ans. a

Explanation:

= (2+3) + (2+32) + (2+33) + ... + (2+311)

= 22 + (3 + 32 + 33 + ... + 311)

= 22 + 3

= 22 + (311 – 1)

(52)

(a)

(b)

(c)

(d)

Ans. c

Explanation:

(53)The value of ‘a’ for which the roots of the equation satisfy the relation is :

(a)-16

(b)18

(d)16

Ans. a

Explanation:

 /
 /
 / a=–16

(54)If ,, Where and then

(a)

(b)

(c)

(d)

Ans. d

Explanation:

x = 1+a+a2+...+

x = a =

y = 1+b+b2+...+

y = b =

1+ab+a2b2+...+

S =

(55)A mixture contains milk and water in the ratio 5:1. In adding 5 liters of water, the ratio of milk and water becomes 5:2 the quantity of milk in the original mixture is:

(a)16 liters

(b)25 liters

(d)32.5 liters

Ans. b

Explanation:

Milk = 5x, water = x

10x = 5x+25

x= 5

The quantity of milk in the original mixture = 5 × 5 = 25 litres

(56)There are 10 questions to be answered to be yes or no. how many ways can these be answered?

(a)1024

(b)1023

(d)2047

Ans. a

Explanation:

2n= 210

=1024

(57)If then value of is

(a) 48

(b) 49

(d) 51

Ans. c

Explanation:

given is

find out

put the value of x in

and solution is

(58)Value of is

(a) 5

(b) 25

(d) 625

Ans. c

Explanation:

(59)If = then equals to

(a) 8

(b) 28

(d) None

Ans. b

Explanation:

or n = 8

then

(60)How many ways can the letters of the word ‘Mathematics’ be arranged so that vowels as well as consonants occur together.

(a)

(b)

(c)

(d) None of these

Ans. a

Explanation:

We have vowelsA, E, A, I and

Consonants M,T,H,M,T,C,S

Total No. of arrangements.

(61)Sum of all natural number till 300 which are not divisible by 3

(a) 45150

(b) 15150

(d) 29700

Ans. c

Explanation :

Sum of natural numbers till 300

Natural numbers which are divisible by 3

3 + 6 + 9 + 12 + ………. 300

= 100

a = 3

L = 300

n = 100

So sum of the numbers which are not divisible by 3 is

(62)An examination paper consists of 12 questions divided into two parts A and B. Part A contains 7 questions and part B contains 5 questions. A candidate is required to attempt 8 questions selecting at least 3 from each part. In how many maximum ways can the candidate select the questions ?

(a) 350

(b) 210

(d) None

Ans. d

Explanation :

The candidate can select 8 questions by selecting at last three from each part in the following ways:

(a)3 questions from part A and 5 questions from part

B= ways

(b)4 questions from part A and part B each

B= ways

Hence, the total number of ways in which the candidate can select the question will be=35+175+210=420 ways.

(63)The Interest on a certain deposit at 4.5% p.a. is Rs. 202.50 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a.?

(a) 23.50

(b) 22.50

(d) None

Ans. b

Explanation :

= Rs. 4,500

Additional Interest =

= Rs. 225 – 202.50

= Rs. 22.50

(64)A manufacturer produces 80 T.V. sets at a cost Rs. 2,20,000 and 125 T.V. sets at a copy of Rs.2,87,500. Assuming the cost curve to be linear find the cost of 95 sets.

(a) Rs. 3,52,500

(b) Rs. 1,45,550

(d) None of these

Ans. c

Explanation :

Since the cost curve is linear we consider cost curve as y=Ax+B where y is total cost. Now for x=80, y=2,20,000. 2,20,000 = 80A+B…….(i)

and for x = 125; y=2,87,500 2,87,500 = 125A+B………(ii)

Subtracting (i) from (ii) 45A=67,500 or A=1500

From (i) 2,20,000 – 1500 (80) = B or B =2,20,000-1,20,000=1,00,000

Thus equation of cost line is y = 1,500x+1,00,000.

For x=95, y=1,42,500+1,00,000=Rs. 2,42,500.

Cost of 95 T.V. set will be Rs. 2,42,500.

(65)In what time Rs. 12000 will amount to Rs. 13230 at 5% C.I.

(a) 2

(b) 4

(d) 5

Ans. a

Explanation :

n = 2

(66)The Difference between compound and simple interest on a certain sum of money for 3 years at 10% p.a. is Rs. 155. The Sum is

(a) Rs. 5000

(b) Rs. 10000

(d) None of these

Ans. a

Explanation :

(P is the Sum)

and difference of C.I. − S.I. = 155

(67)If the equation has equal roots, the values of k are :

(a) 1, 4

(b) −1, 4

(d) −1, −4

Ans. a

Explanation :

For roots to be equal, discriminant = 0

(68)The system of equations and has infinite solutions then find out the value of k

(a) 2

(b) 4

(d) 8

Ans. b

Explanation :

Equation and have Infinite Solution if

then

(69)If A = and then (A-B)(B-A) is

(a)

(b) A

(c)

(d) B

Ans. c

Explanation :

So (A-B)(B-A) = {1,2,3,4,5,6,7}

and also (A-B)(B-A). Hence option (C) is correct.

(70)The Domain of the relation

(a)

(b)

(d) None of these

Ans. a

Explanation :

Left hand side elements of open brackets are called domain so

(71)If is a bijection function given by then is

(a)

(b)

(c)

(d) None of these

Ans. a

Explanation :

(bijection function)

Let

(72)If the salary of P is 25% lower than that of Q and the salary of R is 20% higher than that of Q, the ratio of the salary of R and P will be :

(a)5 : 8

(b)8 : 5

(d)3 : 5

Ans. b

Let Salary of Q =100

Salary of P =100 – 25% of 100

=100 – 25

= 75

Salary of R=100 + 20% of 100

= 100 + 20

=120

Ratio of salary of R and P = 120 : 75 = 8 : 5

(73)Solution space of the inequalities 2x + y 10 and x – y 5 :

(i)includes the origin.

(ii)includes the point (4 ,3)

which one is correct ?

(a)Only (i)

(b)Only (ii)

(c)Both (i) and (ii)

(d)None of the above

Ans. a

Explanation :

Given : 2x + y 10 _____ (1)

Adding (1) & (2) we get

3x 15 x 5

Putting x 5 in eqn(1) we get

y 0

hence x 5 and y 0 is the solution space.

(74)dx is equal to

(a)22 log (x–3) – 16 (2–x) + c

(b)11 log (x–3) – 8 (x–2) + c

(d)22 log (x–3) + 16 log (x–2) + c

Ans. c

Explanation :

or, (Partial fractions)

6x + 4 = A (x – 3) + B (x – 2)

Put x = 3

We get B = 22 Put x = 2

We get A = –16

= –16 log (x–2) + 22 log (x–3)

= 22 log (x–3) – 16 log (x–2) + c

(75)If xy (x–y) = 0, find

(a)

(b)

(c)

(d)None of these

Ans. a

Explanation :

xy (x – y) = 0

x2y – xy2 = 0

Differentiating both sides wrt x

(76)In indirect oral investigation:

(a)Data is not capable of numerical expression

(b)Not possible or desirable to approach informant directly.

(c)Data is collected from the books.

(d)None of these

Ans. b

Explanation : Indirect oral investigation is a method in which a third person is contacted who is expected to know the necessary details about the person for whom the enquiry is mean. This method is suitable when it is not possible or deliverable to approach informant directly.

(77)Five competitors in a contest are ranked by two judges in the order 1, 2, 3, 4, 5 and 2, 3, 1, 5, 4 respectively. Calculate the Spearman’s rank correlation coefficient.

(a)-0.5

(b)-0.6

(d)0.6

Ans. d

Explanation :

Rank -I / 1 / 2 / 3 / 4 / 5
Rank –II / 2 / 3 / 1 / 5 / 4
D2 / 1 / 1 / 4 / 1 / 1

Spearman’s Rank Correlation coefficient =

(78)In a binomial Distribution with 5 independent trials, probability of 2 and 3 successes are 0.4362 and 0.2181 respectively. Parameter ‘p’ of the binomial distribution is:

(a)3/4

(b)1/3

(d)1/4

Ans. b

Explanation : Given

(79)A bag contains 5 Red balls, 4 Blue Balls and ‘m’ Green Balls. If the random probability of picking two green balls is 7/40. What is the no. of green Balls (m).

(a)5

(b)7

(d)None of the above

Ans. b

Explanation : probability of picking two green balls =

(80)If two variables x and y are related by 2x+3y-7=0 and the mean and mean deviation of x about mean are 3 and 0.3 respectively, then the co-efficient of mean deviation of y about mean is:

(a)-5

(b)4

(d)60

Ans. d

Explanation :

of = MD of X =

co-efficient of mean deviation of y about mean =

= 60

(81)From the following data

Commodity / A / B / C / D / E / F
Group Index / 120 / 132 / 98 / 115 / 108 / 98
Weight / 6 / 3 / 4 / 2 / 1 / 4

The general Index I is given by:

(a)111.90

(b)113.45

(d)114.75

Ans. a

Explanation :

Commodity / A / B / C / D / E / F
Group Index (R) / 120 / 132 / 98 / 115 / 108 / 98
Weight (W) / 6 / 3 / 4 / 2 / 1 / 4
(RW) / 720 / 396 / 392 / 230 / 108 / 392

General Index =

(82)In a Normal Distribution

(a)The first and second quartile are equidistant from median

(b)The second and third quartiles are equidistant from the median

(c)The first and third quartiles are equidistant from the median

(d)None of the above.

Ans. c

Explanation : The first and third quartiles are equidistant from the median in normal distribution

(83)Given the observations: 4,9,11,14,37. The mean deviation about the median is

(a)11

(b)8.5

(d)7.45

Ans. c

Explanation : median = 11

= 38

= 7.6

(84)The average age of a group of 10 students was 20 years. The average age increased by 4 years when two new students joined the group. What is the average age of two new students who joined the group?

(a)22 years

(b)30 years

(d)32 years

Ans. c

Explanation : Average age of 10 students = 20 yrs

The sum of age of 10 students = 20 x 10 = 200 yrs