VIDYA SAGAR

CAREER INSTITUTE LIMITED

CPT Major Test 2 (Part B)
Instruction:
1.
2.
3.
4.

Maximum Marks: 100

Use HB Pencil to fill ovals for correct answer.

Each question carry one mark.
Negative marking .25 marks for each wrong answer.
No negative marking for unattempted questions.

Time : 2 Hours
Date : 29.11.2015

___________________________________________________
01.

Which of the following statements is true?

(a) The services of a doctor are considered production.
(b) Man can create matter.
(c) The services of a housewife are considered production.
(d) When a man creates a table, he creates matter

02.

The law of diminishing returns:

(a) states that beyond some level of a variable input, the average product of that variable input begins
to increase steadily.
(b) assumes that there is technological improvement over time.
(c) states that beyond some level of a variable input, the marginal product of that variable begins to
decrease steadily.
(d) informs a firm whether or not to use a factor input.

03.

Law of variable proportion is applicable in:

(a) Short run
(c) Both Short run and Long run

(b)
(d)

Long run
Very Short run

04.

In the third of the three stages of production:

(a) the marginal product curve has a positive slope
(b) the marginal product curve lies completely below the average product curve
(c) total product increases
(d) marginal product is positive

05.

Variable cost includes the cost of

(a) Buying land and building
(c) Insurance premium

(b)
(d)

Hire charges of machinery

Material bought

06.

Suppose that a sole proprietorship is earning total revenues of Rs.2,00,000 and is incurring explicit
costs of Rs.1,50,000. If the owner could work for another company for Rs.60,000 a year, we would
conclude that:
(a) the firm is incurring an economic loss.
(b) implicit costs are Rs.50,000.
(c) the total economic costs are Rs.2,00,000.
(d) the individual is earning an economic profit of Rs.50,000.

07.

If firm's average cost curve is falling then marginal cost curve must be :
(a) Falling
(b) Rising
(c) below average cost curve
(d) None of the above
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08.

Use the following data to answer questions 08

Output
0
1
2
3
4
5
6
The Average fixed cost of 2 units of output is:
(a) Rs. 80
(c) Rs 120

Total Cost
240
330
410
480
540
610
690
(b)
(d)

Rs. 85
Rs. 205

09.

From the following details, find out the average variable cost of 10 units:
OUTPUT :
0
10
20
Total Cost:
Rs. 200
Rs. 400
Rs. 800
(a) Rs. 40
(b) Rs. 20
(c) Rs. 200
(d) Rs. 400

10.

Which of the following statements is incorrect?

(a) If marginal revenue exceeds marginal cost the firm should increase output.
(b) If marginal cost exceeds marginal revenue the firm should decrease output.
(c) Economic profits are maximized when total costs are equal to total revenue.
(d) Profits are maximized when marginal revenue equals marginal cost.

11.

Equilibrium price may be determined through:

(a) Only demand
(c) Both demand & supply

(b)
(d)

Only supply
None of these

12.

Assume that in the market for good Z there is a simultaneous increase in demand and the quantity
supplied. The result will be:
(a) An increase in equilibrium price and quantity.
(b) A decrease in equilibrium price and quantity.
(c) An increase in equilibrium quantity and uncertain effect on equilibrium price.
(d) A decrease in equilibrium price and increase in equilibrium quantity.

13.

Price taker firms:

(a) Advertise to increase the demand for their products.
(b) Do not advertise because most advertising is harmful for the society.
(c) Do not advertise because they can sell as much as they want at the current price.
(d) Who advertise will get more profits than those who do not.

14.

Which is not the essential condition of pure competition?

(a) Large number of buyers and sellers
(b) Homogeneous product
(c) Freedom of entry
(d) Perfect knowledge among buyers and sellers

15.

In perfect competition firm is the..............:

(a) price maker and not price taker
(c) neither price maker nor price taker

(b)
(d)

price taker and not price maker

none of the above

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16.

Dumping involves:
(a) selling at a price in another market which is lower than the price or cost in your home market
(b) price discrimination between the two markets
(c) surplus production at lower cost
(d) none of the above

17.

Monopolistic competition differs from perfect competition primarily because:

(a) in monopolistic competition, firms can differentiate their products.
(b) in perfect competition, firms can differentiate their products
(c) in monopolistic competition, entry into the industry is blocked.
(d) in monopolistic competition, there are relatively few barriers to entry.

18.

The kinked demand curve model of oligopoly assumes that:

(a) response to a price increase is less than the response to a price decrease
(b) response to a price increase is more than the response to a price decrease.
(c) elasticity of demand is constant regardless of whether price increases or decreases.
(d) elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases.

19.

In oligopoly, when the industry is dominated by one large firm which is considered as leader of the
group. This is called:
(a) full oligopoly
(b) collusive oligopoly
(c) partial oligopoly
(d) syndicated oligopoly

20.

Over the years, per capita income is:

(a) Increasing
(c) Constant

(b)
(d)

Decreasing
Galloping

Agriculture faces the problem of:

(a) slow and uneven growth.
(c) overdose of fertilizers.

(b)
(d)

over irrigation.
very few people engaged in it.

21.

22.

The MSME sector in India employs nearly ............. million people in 2011-12
(a) 50
(b) 23
(c) 75
(d) 100

23.

Net National Income at market prices is equal to:

(a) Gross National Income at market prices minus depreciation
(b) Net Domestic Product at factor price plus or minus earnings from abroad
(c) Gross Domestic Product minus indirect taxes and subsidies
(d) Gross National Product at factor price plus or minus depreciation

24.

_____________ is the difference between total receipts and total expenditure:

(a) Fiscal Deficit
(b) Budget Deficit
(c) Capital Deficit
(d) Revenue Deficit

25.

Sex ratio refers to the numbers of females per...............males

(a) 100
(b)
(c) 1000
(d)

300
None of the above

India's present population is:

(a)
Between 50 - 60 crore
(c)
Between 70 - 80 crore

Between 60 - 70 crore
Above 120 crore

26.

(b)
(d)

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27.

According to the planning commission, how many average daily calories per person define the poverty
line in urban areas?
(a) 2,100
(b) 2,400
(c) 2,700
(d) 3,000

28.

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

Table 3
Total population
114
Children (below the working age)
Unemployed people looking for a job
9
Full-time students (not looking for a job)
Retired people
14
Employed people
People confined to correctional institutions 1
Other adults not in the labour force
Based on the information in the table, the country's unemployment rate is:
(a) 7.9%
(b) 12.5%
(c) 20.2%
(d) 22.2%

29.

According to the latest data 2012-13. Plant Load Factor (PLF) is lowest in:
(a)
Southern Region
(b)
Northern region
(c)
Western region
(d) Eastern region

30.

GRT stands for:

(a)
Great Route Tarry
(c)
Gross Registered Tonnage

(b)
(d)

Green Revolution Technology

None of the above

National Literacy mission was launched for:

(a) Primary education
(c) Adult education

(b)
(d)

Secondary education
All of the above

31.

18
2
63
7

32.

Who was the chairman of the working group of planning commission which has suggested the shifting
of base year of wholesale price index.
(a) Dr. C Rangaranjan
(b) Prof. Abhijeet Sen
(c) Prof. A. R. Khusro
(d) Prof. Jankirman

33.

Which of the following concepts of Budget deficit has become practically redundant in India?
(a) Fiscal deficit
(b) Budgetary deficit
(c) Primary deficit
(d) Revenue deficit

34.

India's external debt stood at more than____________ crore March 2013.

(a)
22,00,000
(b) 8,00,000
(c)
30,00,000
(d) 50,00,000

35.

Which of following is primary means of production:

(a) Land
(c) Capital

(b)
(d)

Labour
Both a and b

Cobb-Douglas production function was studied on:

(a) British Industrial Workers
(c) Both of above

(b)
(d)

American manufacturing Industries

None of above

(b)
(d)

Round Curve
Planning Curve

(b)
(d)

Regional Market
International Market

36.

37.

38.

SAC curve is also known as:

(a) Envelop Curve
(c) Plant Curve
Semi durable goods have:
(a) Local Market
(c) National Market

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39.

40.

Who conceive time element in market:

(a) Marshall
(c ) Adam smith

(b)
(d)

Extreme product differentiation is found in which market:

(a) Pure competition
(b)
(c ) Oligopoly
(d)

J.B.Say
Pigou

Monopolistic com
Monopoly

41.

Under monopoly rate of fall of MR is ____________________________ of AR:

(a) Half
(b) Double
(c) Triple
(d) None of above

42.

Various degrees of price discrimination was given by:

(a) Marshall
(b) Both of above

(b)
(d)

Pigou
None of above

43.

As per census 2011, there has been__________________ in absolute number of cultivators:

(a) Rise
(b) Decline
(c ) No change
(d) None of above

44.

To enhance food security and to make Indian Agriculture resilient to climate change, _____ was
launched in 2011-12 :
(a) NMSA
(b) APMC
(c) FASAL
(d) None of above

45.

Corporate Income tax is levied on:

(a) Registered companies and corporations
(c) AOP

(b)
(d)

HUF
All of above

In 2011 Literacy Ratio under the female is:

(a) 82.1
(b) 65.0

(b)
(d)

65.5
74

46.

47.

Which of the following statement is correct(a) Production of nuclear power has started and it is too much in India
(b) At present nearly 22% of the energy consumed is obtained from non commercial sources.
(c) India is fourth energy producer in the world
(d) None of these

48.

India has______________________ (end of March 2013).

(a) 1% of world fleet
(b)
(c ) 2% of world fleet
(d)

1.5% of world fleet

1.4% of world fleet

49

The downward sloped part of LAC curve is due to which of the following:
(a) cheaper raw materials
(b) development of skilled labour
(c) better marketing facilities
(d) All of these

50.

Which of the following is incorrect statement:

(a) market of perishable goods come under very short period market
(b) in the long period market supply of goods may be increased by installing a new plant
(c ) very long period also knows secular period
(c) all of the above correct statement
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51.

A person saved Rs. 16500 in ten years. In each year after the first year he saved Rs. 100 more than he
did in the preceding year. The amount of money he saved in the 1st years was:
(a) Rs. 1000
(b) Rs. 1500
(c) Rs. 1200
(d) None of these

52.

The sum of 3 numbers of a G.P. is 39 and their product is 729. The numbers are:
(a) 3, 27,9
(b) 9,3, 27
(c)
3,9, 27
(d) None of these

53.

If the term of a G.P exceeds the seconds term by 2 and the sum to infinity is 50, the series is:
(a) 10, 8 , 32/5, ......................
(b) 10, 8, 5/2, .................
(c) 10, 10/3, 10/9, ......................
(d) None of these

54.

For any two sets A and B the set (AUB')' is Equal to (where' denotes compliment of the set).
(a) B-A
(b)
A-B
(c) A' - B
(d) B'-A'

55.

If F : A R is a real valued function

defined by f (x) = 1/x, then A =__________.
(a) R
(c) R - { 0 }

56.

57.

58.

59.

R-{1}
R-N

(b)

2/3t

(d)

None of these

is evaluated to be:

(a)

3/2

(c)

3
2

t
is:

(a)

(b)

(c)

Does not exist

(d)

None of these

is:

(a)

a-b

(b)

ab

(c)

(d)

None of these

(b)
(d)

x = 4/5
(a) & (c) both

(b)
(d)

(1/2) x3/2
(a) & (c) both

If f(x) =
(a)
(c)

60.

(b)
(d)

++
+

is to be discontinuous then :

x = 5/4
x = -4/3

If y = x-1/2 then is:

(a)
(c)

(-1/2) x-3/2
(-1/2) x3/2

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61.

62.

63.

64.

Find ; if y = (+) :
(a)

+
()

(b)

(+)

(c)

(+)

(d)

None of these

(b)

(d)

None of these

If f (x) = + then is
(a)

2
3

(c)

- 3 x (1 + x2)3/2 + k

x (1 + x2)3/2 + k
2

Evaluate

+
+ +

1 + 2 + 2 log (x + 2 + 1) + k

dx

(a)

1
2

log (x2 + 6x + 4 ) + c

(b)

1
2

(c)

1
2

log (x + 3 ) + c

(d)

None of these

(b)
(d)

-8
None of these

Evaluate 0
(a) 7
(c) 8

-x + log (x2 + 6x + c ) + c

dx is

65.

If Sum (Sn) of 'n' terms of an Arithmetic Progression is (2n2+n). what is the difference of its 10th and 1st
term?
(a) 207
(b) 36
(c) 90
(d) 63

66.

"Is the square of" over n set of real numbers is :

(a) Reflexive
(c) Transitive

67.

68.

The function f(x) is continuous at x = a if

(a)
f (-a)
(c)
f (0)

32

(a)
(c)
69.

70.

(b)
(d)

Symmetric
None of these

f(x) =
f(x) =_______:

(b) f(a)
(d) None of these

dx is equal to:

1
3- 2

If a, b, c are in A.P. as well as in G.P. then:

(a) They are also in H.P. (Harmonic Progression)
(c) Both (a) and (b) are true

3
2

(b)

1-

(d)

2- 3

(b)
(d)

Their reciprocals are in A.P.

Both (a) and (b) are false

The sum upto infinity of the series 4/7 - 5/72 + 4/73 - 5/74 + ............. is:
(a) 23/48
(b) 25/48
(c) 1/2
(d) None of these

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71.

If f x x x 2 then redefine the function. Hence find f (3.5), f (-2), f (1.5).

(a)
(c)

72.

73.

74.

2,6,5
2,2,1

If g(x) = 3 - x then g(x) is :

(a) An odd function
(c) An even function

(b)
(d)

5,6,2
None of these

(b)
(d)

A periodic function
None of these

In the set N of all natural numbers the relation R defined by a R b if and only if, a divide b. then the
relation R is:
(a) Partial order relation
(b) Equivalence relation
(c) Symmetric relation
(d) None of these

/
/ +

=:

(a)

(b)

(c)

(d)

Does not exist

75.

The cost function for the production of x units of a commodity is given by C (x) = 2x3 - 15x2 + 36x + 15
The cost will be minimum when 'x' is equal to:
(a) 3
(b)
2
(c) 1
(d) 4

76.

Two dice are thrown at a time. The probability that the nos. shown are equal is:
(a) 2/6
(b)
5/6
(c) 1/6
(d) None of these

77.

The following table gives distribution of wages of 100 workers Wages (in Rs.)
120-140
140-160 160-180
180-200 200-220
220-240
No. of workers
9
20
0
10
8
35
The probability that his wages are under Rs.140 is:
(a) 20/100
(b) 9/100
(c) 29/100
(d) None of these

240-260
18

78.

The probability that a student passes in statistics test is 2/3 and the probability that he passes both
statistics and mathematics test is 14/45. The probability that he passes at least one test is 4/5. What is
the probability that he passes in Mathematics?
(a) 4/9
(b) 3/5
(c) 1/5
(d) 1/10

79.

A card is drawn from a pack of playing cards and then another card is drawn without the first being
replaced. What is the probability of getting two kings?
(a)
7/52
(b) 1/221
(c)
3/221
(d) None of these.

80.

What is the probability of getting 3 heads if 6 unbiased coins are tossed simultaneously:
(a) 0.50
(b) 0.25
(c) 0.3125
(d) 0.6875

81.

If x and y are two independent variables such that X ~ B(n1, p) and Y ~ B (n2, p) then the parameter of
Z = X + Y is:
(a) (n1 + n2, p)
(b) (n1 - n2, p)
(c)
(n1 + n2, 2/p)
(d) None of these
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82.

A binomial distribution with parameters n and p can be approximated by a Poisson distribution with
parameter m = np is :
(a) n
(b) p 0
(c) n and p 0
(d) n and p 0 so that np remains finite

83.

Examine the validity of the following statement. For a poisson distribution, mean = 3 and standard
deviation = 4 :
(a) Valid
(b) Not Valid
(c) Neither (a) nor (b)
(d) Both (a) and (b)

84.

If the mean deviation of a normal variable is 16, what is its quartile deviation:
(a) 10.00
(b) 13.50
(c) 15.00
(d) 12.05

85.

A sample of 100 dry battery cells tested to find the length of life produced the following results = 12
hours, = 3 hours. What percentage of battery cells are expected to have life less than 6 hours: [Area
under the normal curve from Z = 0 to Z = 2 is 0.4772]:
(a) 2.28%
(b)
2.56%
(c) 4.56%
(d) 1.93%

86.

In a discrete random variable x follows uniform distribution and assumes only the values 8 , 9, 11, 15,
18, 20. Then P(x = 12) is:
(a) 1/6
(b) 0
(c) 1/7
(d) None of these

87.

Which would you prefer for "The universe is large"

(a)
Full enumeration
(c) both

(b)
(d)

sampling
None of these

A statistic is a_____________ variable:

(a) simple
(c) random

(b)
(d)

compound
None of these

Deliberate sampling is free from bias:

(a) True
(c) both (a) & (b)

(b)
(d)

false
None of these

The most commonly used confidence levels are:

(a) greater than and equal to 90%
(c) greater than 90%

(b)
(d)

less than 90%

less than and equal to 90%

88.

89.

90.

91.

A random sample of a group of people is taken and 120 were found to be in favour of liberalizing
licensing regulations. If the proportion of people in the population found in favor of liberalization with
95% confidence lies between 0.683 and 0.817, then the number of people in the group is :
(a) 140
(b) 150
(c) 160
(d) 175

92.

The probability that leap-year consists of 52 Sunday & 53 Monday.............

(a) 1/7
(b) 2/4
(c) 3/7
(d) 5/7
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93.

94.

________distribution is symmetrical around t = 0

(a) Normal
(c) Binomial

Poisson
t

The 95% confidence interval for the population mean is given by: (symbols having the usual meaning):
(a)
(c)

95.

(b)
(d)

1.96
0.96

(b)

If:
x
:
-2
P(x) :
1/3
then find E (2x + 5)
(a) 7
(c) 9

3
1/2

0.96

(d)

1.96

(b)
(d)

6
4

1
1/6

96.

The probability than a man aged 45 years will die within a year is 0.012. What is the probability that of
10 men, at least 9 will reach their 46 birthday?(e-0.12 = 0.88692)
(a) 0.0935
(b) 0.9934
(c) 0.9335
(d) 0.9555

97.

From 6 positive and 8 negatives numbers, 4 Numbers are selected at random without replacement and
are then multiplied. The probability that the product of the chosen numbers will be negative is:
(a) 495/1001
(b) 496/1001
(c) 506/1001
(d) None of these

98.

Suppose that 5% of men and 0.25% of women have grey hair. A grey haired person is selected at
random. What is the probability of this person being male? Assume that there are equal number of
males and females.
5
1
(a) 200
(b) 800
(c)

99.

20
21

(d)

50
53

A bag contains 3 white, 3 black and 2 red balls. One by one, three balls are drawn without replacing
them. Find the probability that the third ball is red:
1
1
(a) 2
(b) 3
(c)

1
4

(d)

1
5

100. If two dice are rolled 12 times, obtain the mean and the variance of the distribution of successes, if
getting a total greater than 4 is considered a success.
5
5
(a) 10,
(b) 2,
3

(c)

1 5
,
6 36

(d)

2,

5
36

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