1. Which of the management functions are closely related?

a) Planning and Organization

b) Staffing and Control
c) Planning and Control
d) Planning and Staffing

2. Assertion (A): Management is mainly associated with economic affairs

Reasoning(R): Big business houses are the result of effective financial management
A) (A) is correct and (R) is the right explanation of (A)
B) Both (A) and (R) are correct but (R) is not the right explanation of (A)
C) (A) is correct and (R) is not correct
D) Both (A) and (R) are not correct

3. Broad Money has to be sensitized through:

(A) CRR
(B) SLR
(C) Repo Rate
(D) All of the above

4. Assertion (A): Total utility will be maximum when marginal utility to price of respective
products are equal.
Reason (R) : Deviation from this situation leads to reduction in maximum utility.
(A) (A) and (R) are not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) are correct.
(D) (A) is incorrect, (R) is correct.

5. Match List-I with List-II and select the correct answer.

List – I List – II
Survival (a) Economic Objective
R.O.I (b) Natural Urge
Growth (c) Business Purpose
Innovation (d) Primary Objective
Codes : (a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)

6. Which of the following is not a restricted random sampling technique ?

(A) Stratified sampling
(B) Simple random sampling
(C) Systematic sampling
(D) Multistage sampling
7. Classification of respondents only on the basis of gender is an application of
(A) Ordinal scale
(B) Nominal scale
(C) Interval scale
(D) Ratio scale

8. F-test is used to test the significance of the differences between/among

(A) Two sample mean
(B) More than two samples mean
(C) Variance of two samples
(D) (B) and (C)

9. Match the following List-I List-II

(i) The Practice of Management (a) Henry Fayol
(ii) Philosophy of Management (b) F.W. Taylor
(iii) Scientific Management (c) Oliver Sheldon
(iv) General and Industrial Administration (d) Peter F Drucker

Codes : (i) (ii) (iii) (iv)

(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (d) (c) (a) (b)
(D) (c) (d) (b) (a)

10. Identify the correct sequence of steps involved in planning :

(i) Selecting the best course of action
(ii) Establishing the sequence of activities
(iii) Establishment of objectives
iv) Evaluating alternative courses
(v) Determining alternative courses
(A) (i), (ii), (iii), (iv) and (v)
(B) (iii), (v), (iv), (ii) and (i)
(C) (v), (iv), (iii), (ii) and (i)
(D) (iii), (v), (iv), (i) and (ii)

11. Assertion (A) : One can be sure about future course of actions by making good plans.
Reasoning (R) : Planning brings certainty in future course of actions of an organisation.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are not correct.
12. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of
Hierarchy Theory will fall under the Hygiene Factors?
(A) Self actualisation, esteem and social needs
(B) Esteem, social and safety needs
(C) Social, safety and physiological needs
(D) Only social needs

13. Which four are the factors influencing the Human Resource Management of an organisation?
(i) Size of workforce
(ii) Employee Expectations
(iii) Composition of workforce
(iv) Political influence
(v) Changes in technology

(A) (i), (ii), (iii) and (iv)

(B) (i),(ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)

14. When average cost is declining

(A) Marginal cost must be declining.
(B) Marginal cost must be above average cost.
(C) Marginal cost must be below average cost.
(D) Marginal cost must be rising.

15. Which subject is relevant to the study of consumer behaviour?

(A) Economics
(B) Psychology
(C) Sociology
(D) All the above

16. If price of any commodity decreases by 20% and the demand for that commodity increases
by 40%, then elasticity of demand would be
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Unit elastic
(D) Highly elastic

17. Which of the following statements is true?

(A) In case of inferior goods, the income effect is negative, although the substitution effect is
positive.
(B) In inferior goods, the income and substitution effects are positive.
(C) In inferior goods, the income and substitution effects are negative.
(D) In case of inferior goods, the income effect is positive although the substitution effect is
negative.
18. In perfect competition, the demand curve of a firm is
(A) Vertical
(B) Horizontal
(C) Positively sloped
(D) Negatively sloped

19. Which one is not non-financial incentive?

(A) Additional bonus on minimum wasteful expenditure.
(B) Permanent job.
(C) Participatory decision making.
(D) Recognition of individuality.

20. Which one is not the main objective of fiscal policy of India?
(A) To increase liquidity in the economy.
(B) To promote price stability
(C) To minimize the inequalities of income and wealth
(D) To promote employment opportunities.

21. Which kind of economics explains the phenomenon of cause and effect relationship?
(A) Normative
(B) Positive
(C) Micro
(D) Macro
22. Assertion (A): Marginal cost and differential cost do not convey the same meaning in all the
circumstances.
Reason (R): Differential cost increases or decreases due to change in fixed cost.
Codes:
(A) (A) is true but (R) is false
(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

23. Assertion (A): Marginal cost and differential cost do not convey the same meaning in all the
circumstances.
Reason (R): Differential cost increases or decreases due to change in fixed cost.
Codes:
(A) (A) is true but (R) is false
(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

24. A commodity is used for multiple purposes, and then the demand for it is known as
(A) Joint Demand
(B) Composite Demand
(C) Direct Demand
(D) Autonomous Demand
25. Demand has the following elements:
(A) Quantity
(B) Price
(C) Time
(D) All the above

26. A perfectly competitive firm attains equilibrium when

(A) AC = AR
(B) MR = MC
(C) MC = AC
(D) TC = TR

27. Statements
(i) The Law of Demand always operates in the case of superior goods
(ii) The substitution effect is always positive
(A) Both are correct (B) Both are wrong
(C) (i) Correct and (ii) wrong (D) (i) wrong and (ii) correct

28. Which of the following firms witnesses kinked demand curve?

(A) Monopoly firm (B) Oligopoly firm (C) Perfectly competitive firm (D) Duopoly firm

29. Statements:
(i) Penetration price covers all costs
(ii) The objective of skimming price is to penetrate the market with the lowest possible price
(A) Both are correct (B) Both are wrong
(C) (i) is correct and (ii) is wrong (D) (i) is wrong and (ii) is correct

30. Which one of the following is not a common property of an indifference curve?
(A) Downward sloping (B) Convex to the origin
(C) Two indifference curves can intersect each other (D) None of the above