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# CA - CPT ICAI Model Test Paper - 2

## 200 Questions MCQ Test CA CPT - Mock Test Series and Previous Year Question Papers | CA - CPT ICAI Model Test Paper - 2

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This mock test of CA - CPT ICAI Model Test Paper - 2 for CA CPT helps you for every CA CPT entrance exam. This contains 200 Multiple Choice Questions for CA CPT CA - CPT ICAI Model Test Paper - 2 (mcq) to study with solutions a complete question bank. The solved questions answers in this CA - CPT ICAI Model Test Paper - 2 quiz give you a good mix of easy questions and tough questions. CA CPT students definitely take this CA - CPT ICAI Model Test Paper - 2 exercise for a better result in the exam. You can find other CA - CPT ICAI Model Test Paper - 2 extra questions, long questions & short questions for CA CPT on EduRev as well by searching above.
QUESTION: 1

Solution:
QUESTION: 2

Solution:
QUESTION: 3

### The determination of expenses for an accounting period is based on the principle of

Solution:
QUESTION: 4

It is essential to standardize the accounting principles and policies in order to ensure

Solution:
QUESTION: 5

Change in accounting estimate means

Solution:
QUESTION: 6

Which account is the odd one out?

Solution:
QUESTION: 7

In Double Entry System of Book-keeping every business transaction affects:

Solution:
QUESTION: 8

Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?

Solution:
QUESTION: 9

Contra entries are passed only when

Solution:
QUESTION: 10

The following is not a type of liability

Solution:
QUESTION: 11

Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as ________

Solution:
QUESTION: 12

When preparing a Bank Reconciliation Statement, if you start with a debit balance as per the Cash Book, then cheques issued but not presented within the period are __________

Solution:
QUESTION: 13

Under inflationary conditions, ______ method will show highest value of closing inventory?

Solution:
QUESTION: 14

In the case of downward revaluation of an asset, which is for the first time revalued, _______ account is debited.

Solution:
QUESTION: 15

The portion of the acquisition cost of the asset, yet to be allocated to Profit and Loss Account is known as ________

Solution:
QUESTION: 16

If a concern proposes to discontinue its business from March 2010 and decides to dispose off all its assets within a period of 4 months, the Balance Sheet as on March 31, 2010 should indicate the assets at their _________

Solution:
QUESTION: 17

An entry which is made on both sides of a cash book is called​

Solution:
QUESTION: 18

Sales for the year ended 31st March, 2010 amounted to Rs. 10,00,000. Sales included goods sold to Mr. A for Rs. 50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of

Solution:
QUESTION: 19

As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ________ percent per annum.

Solution:
QUESTION: 20

If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to:

Solution:
QUESTION: 21

Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2011. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively.Dismantling charges of the old machine, in place of which new machine was purchased, amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March, 2012. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books.

Q. Which of the following concepts was violated by A?

Solution:
QUESTION: 22

Mohan purchased goods for Rs. 15,00,000 and sold 4/5th of the goods amounting Rs. 18,00,000 and paid expenses amounting Rs. 2,70,000 during the year, 2009. He paid Rs. 5,000 for an electricity bill of Dec. 2008 and advance salaries amounting Rs. 15,000 was paid for the month of Jan. 2010. He counted net profit as Rs. 3,50,000.The net profit calculated by him is correct according to _________

Solution:
QUESTION: 23

W Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be_________

Solution:
QUESTION: 24

S Ltd. issued 2,000, 10% Preference shares of Rs.100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs.100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be _________

Solution:
QUESTION: 25

G Ltd. acquired assets worth Rs.7,50,000 from H Ltd. by issue of shares of Rs.100 at a premium of 25%. The number of shares to be issued by G Ltd. to settle the purchase consideration will be_________

Solution:
QUESTION: 26

Equity share capital called up Rs. 5,00,000
Calls in arrear Rs. 40,000
Proposed dividend 15%
Q. The amount of dividend payable will be

Solution:
QUESTION: 27

The subscribed share capital of S Ltd. is Rs.80,00,000 of Rs.100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares. The calls in arrear amounted to Rs.62,500. The final call on each share will be_________

Solution:
QUESTION: 28

A Company wishes to earn a 20% profit margin on selling price. Which of the following is the profit mark up on cost, which will achieve the required profit margin?

Solution:
QUESTION: 29

A, B and C are the partners sharing profits and losses in the ratio of 5:3:2, took a joint life policy of Rs. 30,000. On the death of B what amount will be payable to each partner?

Solution:
QUESTION: 30

A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs. 50,000 for A and B, for C Rs. 25,000. B declared to retire from the firm and balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050 then what amount will be transferred to the loan account of B?

Solution:
QUESTION: 31

A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs.  5,000 as goodwill find closing capital of C.

Solution:
QUESTION: 32

P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. How much cash will P & Q withdraw from the firm on account of goodwill?

Solution:
QUESTION: 33

A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5th share from A and 1/10th from B, new profit sharing ratio will be _________

Solution:
QUESTION: 34

A, B and C are equal partners. D is admitted to the firm for one-fourth share. D brings Rs. 20,000 capital and Rs. 5,000 being half of the premium for goodwill. The total value of goodwill of the firm is_________

Solution:
QUESTION: 35

A and B are partners with capitals of Rs. 10,000 and Rs. 20,000 respectively and sharing profits equally. They admitted C as their third partner with one-fourth profits of the firm on the payment of Rs. 12,000. The amount of hidden goodwill is_________

Solution:
QUESTION: 36

A & B are partners sharing profits and losses in the ratio 5:3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. The sacrificing ratio of A:B will be _________

Solution:
QUESTION: 37

Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is _________

Solution:
QUESTION: 38

A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2009, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of inventory on approval at the end of the year will be _________

Solution:
QUESTION: 39

On 16.6.2010 X draws a bill on Y for Rs 25,000 for 30 days. 19th July 2010 is a public holiday, maturity date of the bill will be:

Solution:
QUESTION: 40

Bobby sold goods worth Rs 25,000 to Bonny. Bonny immediately accepted a bill on 1.11.09, payable after 2 months. Bobby discounted this bill @ 18% p.a. on 15.11.09. On the due date Bonny failed to discharge the bill. Later on Bonny became insolvent and 50 paise is recovered from Bonny’s estate. How much amount of bad debt will be recorded in the books of Bobby?

Solution:
QUESTION: 41

Ram’s acceptance to Dinesh for Rs 8,000 renewed for 3 months on the condition that Rs. 4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.a. The amount of interest will be _________

Solution:
QUESTION: 42

A draw s a bill on B for Rs . 30 , 000 . A wants t o endo rs e it to C in s et tlement o f Rs. 35,000 at 2% discount with the help of B’s acceptance and balance in cash. How much cash A will pay to B?

Solution:
QUESTION: 43

A drew a bill on B for Rs. 50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be _________

Solution:
QUESTION: 44

A and B enter into a joint venture to underwrite the shares of K Ltd. @ 5% underwritting commission. K Ltd. make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio.How many shares to be purchased by A?

Solution:
QUESTION: 45

R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.

Solution:
QUESTION: 46

A and B entered into a Joint Venture. A purchased goods costing Rs. 2,00,000, B sold 4/5th of the same for Rs. 2,50,000. Balance goods were taken over by B at cost less 20%. If same set of books is maintained, find out profit on venture.

Solution:
QUESTION: 47

If unsold goods costing Rs. 20,000 is taken over by Venturer at Rs. 15,000, the Joint Venture A/c will be credited by:

Solution:
QUESTION: 48

X of Kolkata sends out goods costing Rs. 1,00,000 to consignee Y of Delhi. 3/5th of the goods were sold by consignee for Rs. 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be:

Solution:
QUESTION: 49

Rahim of Kolkata sends out 1,000 boxes to Ram of Delhi costing Rs. 100 each at an Invoice Price of Rs. 120 each. Goods send out on consignment to be credited in general trading account will be:

Solution:
QUESTION: 50

Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?

Solution:
QUESTION: 51

A of Kolkata sends out 500 boxes to B of Delhi costing Rs. 200 each. Consignor’s expenses Rs 5000. 1/5th of the boxes were still in transit. 3/4th of the goods received by consignee, were sold. The value of goods still in transit will be:

Solution:
QUESTION: 52

If sales revenue are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are Rs.60,000 the gross profit is _________

Solution:
QUESTION: 53

If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% , then the cost of goods sold will be _________

Solution:
QUESTION: 54

Amit Ltd. purchased a machine on 1.1.2009 for Rs. 1,20,000. Installation expenses were Rs.10,000. On 01.07.2009 , expenses for  repairs were  incurred to the extent  of Rs. 2,000. Dep reciation is provided under straight line method. Depreciation rate is 10%. Annual Depreciation will be ________

Solution:
QUESTION: 55

The long term assets that have no physical existence but are rights that have value is known as

Solution:
QUESTION: 56

The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total sales during the period are Rs.13,00,000. If the gross profit margin of the company is % on cost, the closing inventory during the current year is

Solution:
QUESTION: 57

Solution:
QUESTION: 58

When preparing a Bank Reconciliation Statement, if you start with the debit balance as per Cash Book, cheques issued but not presented within the period should be _________

Solution:
QUESTION: 59

Rs. 200 paid as wages for erecting a machine should be debited to _________

Solution:
QUESTION: 60

Rs. 2,500 spent on the overhaul of a machine purchased second-hand is _________

Solution:
QUESTION: 61

The law of contract in India is contained in:

Solution:
QUESTION: 62

A void agreement is one which is:

Solution:
QUESTION: 63

Which of the following is false? An acceptance:

Solution:
QUESTION: 64

A proposal when accepted becomes a

Solution:
QUESTION: 65

Which of the following statement is false? Consideration:

Solution:
QUESTION: 66

Which of the following statement is true?

Solution:
QUESTION: 67

Which of the following statement is true?

Solution:
QUESTION: 68

On the valid performance of the contractual obligations by the parties, the contract

Solution:
QUESTION: 69

A contract is discharged by rescission which means the

Solution:
QUESTION: 70

The Sale of Goods Act, 1930 deals with _________

Solution:
QUESTION: 71

Which one of the following is/are document of title to goods?

Solution:
QUESTION: 72

Which one of the following is not true?

Solution:
QUESTION: 73

In which form of the contract, the property in the goods passes to the buyer immediately:

Solution:
QUESTION: 74

Which one of the following is not an implied warranty?

Solution:
QUESTION: 75

A firm is the name of:

Solution:
QUESTION: 76

A partnership at will is one:

Solution:
QUESTION: 77

Every partner has the right to:

Solution:
QUESTION: 78

Which of the following is not disability of an unregistered firm?

Solution:
QUESTION: 79

Which of the following is not the right of a partner i.e., which he cannot claim as a matter of right?

Solution:
QUESTION: 80

In case of illegal agreements, the collateral agreements are ___________ .

Solution:
QUESTION: 81

Consent is not said to be free when it is caused by ____________

Solution:
QUESTION: 82

Moral pressure is involved in the case of ___________

Solution:
QUESTION: 83

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for ________

Solution:
QUESTION: 84

A contract dependent on the happening or non-happening of future uncertain event, is a __________

Solution:
QUESTION: 85

A agrees to pay Rs. one lakh to B if he brings on earth a star from sky. This is a contingent contract and __________.

Solution:
QUESTION: 86

As a general rule, an agreement made without consideration is __________

Solution:
QUESTION: 87

An agreement made with free consent to which the consideration is lawful but inadequate, is ________.

Solution:
QUESTION: 88

A contract with the minor, which is beneficial for him, is __________

Solution:
QUESTION: 89

A stipulation in a contract of sale of goods whose violation by seller gives a right of rescission to buyer, is called ____________

Solution:
QUESTION: 90

The essence of a right of lien is to _________

Solution:
QUESTION: 91

If a seller handed over the keys of a warehouse containing the goods to the buyer results in ___________

Solution:
QUESTION: 92

A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is _________

Solution:
QUESTION: 93

A contact for the sale of goods which provide that the property would pass to the buyer on full payment of price and execution of sale deed, is known as ___________

Solution:
QUESTION: 94

Voluntary transfer of possession by one person to another is popularly known as __________

Solution:
QUESTION: 95

On the valid performance of the contractual obligations by the parties, the contract

Solution:
QUESTION: 96

A new partner can be admitted in the firm with the consent of _________

Solution:
QUESTION: 97

A partner may retire from an existing firm ________

Solution:
QUESTION: 98

A partnership firm is compulsorily dissolved where ___________

Solution:
QUESTION: 99

Ram, Rohit and Kiran jointly borrowed Rs. 2,00,000 from Rahim by executing a promissory note. Rohit and Kiran are not traceable. Rahim wants to recover the entire amount from Ram. Ram objected this move by saying he is liable to pay 1/3 of the debt only. Which of the following statement(s) is correct?

Solution:
QUESTION: 100

A, a Singer agrees with B for his performance at a particular theatre on a specified date.While on his way to the theatre A meets with an accident and is rendered unconscious.Choose the correct statement.

Solution:
QUESTION: 101

Which of the following statements would you consider to be a normative one?

Solution:
QUESTION: 102

Consider the following and decide which, if any, economy is without scarcity:

Solution:
QUESTION: 103

The economic analysis expects the consumer to behave in a manner which is:

Solution:
QUESTION: 104

After reaching the saturation point, consumption of additional units of the commodity cause:

Solution:
QUESTION: 105

Consumer surplus is highest in the case of:

Solution:
QUESTION: 106

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of:

Solution:
QUESTION: 107

The vertical difference between TVC and TC is equal to:

Solution:
QUESTION: 108

Price taker firms:

Solution:
QUESTION: 109

The AR curve and industry demand curve are same:

Solution:
QUESTION: 110

Which of the following is not, by definition, equal to National Income?

Solution:
QUESTION: 111

Which of the following is not an objective of Fiscal policy?

Solution:
QUESTION: 112

The main objective of the World Trade Organisation is to secure among others:

Solution:
QUESTION: 113

Which one of the following is the best example of agreement between oligopolists?

Solution:
QUESTION: 114

Which of the following concepts of Budget deficit has become practically redundant in India?

Solution:
QUESTION: 115

Birth rate and Death rate are measured as per:

Solution:
QUESTION: 116

Money includes:

Solution:
QUESTION: 117

—————— pair of commodities is an example of substitutes.

Solution:
QUESTION: 118

When the price of a substitute of X commodity falls, the demand for X ———.

Solution:
QUESTION: 119

Marginal utility approach to demand was given by ————————.

Solution:
QUESTION: 120

While analyzing Marshall’s measure of consumer’s surplus one assumes ——.

Solution:
QUESTION: 121

The law of variable proportions comes into being when —————.

Solution:
QUESTION: 122

————— is an implicit cost of production.

Solution:
QUESTION: 123

Solution:
QUESTION: 124

Stagflation means —————.

Solution:
QUESTION: 125

—————— is not a direct tax.

Solution:
QUESTION: 126

————— has been founded to act as permanent watchdog on the international trade.

Solution:
QUESTION: 127

___________measure usually gives the lowest estimate of unemployment especially for poor economy.

Solution:
QUESTION: 128

The average profit is the difference between ——————.

Solution:
QUESTION: 129

At the point of inflexion, the marginal product is  ——————.

Solution:
QUESTION: 130

Marginal revenue will be negative if elasticity of demand is  ——————.

Solution:
QUESTION: 131

If lowering of fares reduces railway’s revenues and increasing of fares increases, them the demand for rail travel has a price elasticity of  ——————.

Solution:
QUESTION: 132

If R point bisects the demand curve in two equal parts, then elasticity at R equals  ———.

Solution:
QUESTION: 133

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

Q. According to Table 1, the opportunity cost of increasing gun’s production from 20 to 30 units is equal to

Solution:
QUESTION: 134

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

Q. Given the data in Table 1, one moves successively from point A to points B, C, D,E and F, the opportunity cost of guns:

Solution:
QUESTION: 135

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

Q. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Why?

Solution:
QUESTION: 136

In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.

Q. What is Bank Rate?

Solution:
QUESTION: 137

In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.

Q. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?

Solution:
QUESTION: 138

(Direction 138 - 141) Use Table 2 to answer questions.

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

Q. If burgers sell for Rs. 14 each, what is Bozzo’s profit maximizing level of output?

Solution:
QUESTION: 139

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

Q. What is the total variable cost when 60 burgers are produced?

Solution:
QUESTION: 140

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

Q. What is average fixed cost when 20 burgers are produced?

Solution:
QUESTION: 141

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

Q. Between 10 to 20 burgers, what is the marginal cost (per burger)?

Solution:
QUESTION: 142

(Direction 142 - 147) Read the follwing question.

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. The price elasticity of demand when fresh milk’s price increases from Rs. 20 per litre to Rs. 30 per litre is equal to: (use Arc Elasticity Method)

Solution:
QUESTION: 143

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. The cross elasticity of monthly demand for cereal when the price of fresh milk increases from Rs. 20 to Rs. 30 is equal to:

Solution:
QUESTION: 144

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. The cross elasticity of monthly demand for powdered milk when the price of fresh milk increases from Rs. 20 to Rs. 30 per litre is equal to:

Solution:
QUESTION: 145

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. What can be said about the price elasticity of demand for fresh milk?

Solution:
QUESTION: 146

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. Suppose income of the residents of Ecoville increases by 50% and the quantity of fresh milk demanded increases by 30%. What is income elasticity of demand for fresh milk?

Solution:
QUESTION: 147

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. We can say that fresh milk in economic sense is a/an:

Solution:
QUESTION: 148

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:

Solution:
QUESTION: 149

(Direction 149 - 150) Use Table 3 to answer questions.

Q. What is the total output when 2 hours of labour are employed?

Solution:
QUESTION: 150

Q. What is the marginal product of the third hour of labour?

Solution:
QUESTION: 151

Mutually exclusive classification is usually meant for

Solution:
QUESTION: 152

If log 2 = 0.3010 and log 3 = 0.4771, the value of log5 512 is:

Solution:

QUESTION: 153

Which measure of dispersion is based on all the observations?

Solution:
QUESTION: 154

If an unbiased coin is tossed once, then the two events Head and Tail are:

Solution:
QUESTION: 155

If P(A) = P(B), then

Solution:
QUESTION: 156

As the sample size increases, standard error

Solution:
QUESTION: 157

The test of shifting the base is called

Solution:
QUESTION: 158

Which sampling is subjected to the discretion of the sampler?

Solution:
QUESTION: 159

Scatter diagram helps us to

Solution:
QUESTION: 160

The point of intersection between the straight lines 3x + 2y = 6 and 3x – y = 12 lie in

Solution:
QUESTION: 161

The unit digit in the product (624 * 708 * 913 * 463) is:

Solution:

Unit digit in the given product = Unit Digit in (4*8*3*3) = 8

QUESTION: 162

The logarithm of a number consists of two parts, the whole part or the integral part is called the ______ and the decimal part is called the _______.

Solution:
QUESTION: 163

If b2–4ac < 0 then the roots are ________.

Solution:
QUESTION: 164

In ________ receipts/payments takes place forever.

Solution:
QUESTION: 165

Usually _________ is the best measure of central tendency.

Solution:
QUESTION: 166

________ are used for measuring central tendency , dispersion & skewness.

Solution:
QUESTION: 167

If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation is_______.

Solution:
QUESTION: 168

A small value of “r” indicates only a _________ linear type of relationship between the variables.

Solution:
QUESTION: 169

The method usually applied for fitting a binomial distribution is known as______.

Solution:
QUESTION: 170

An index time series is a list of _______ numbers for two or more periods of time.

Solution:
QUESTION: 171

The following data relate to the marks of a group of students:

Q. How many students got marks more than 30?

Solution:
QUESTION: 172

The following data relate to the incomes of 86 persons :

Q. What is the percentage of persons earning more than Rs. 1500?

Solution:
QUESTION: 173

Value of 2x1/2.3x–1 if x = 4 is

Solution:
QUESTION: 174

A number between 10 and 100 is five times the sum of its digits. If 9 be added to it the digits are reversed, find the number.

Solution:

Let x be the first digit.
Let y be the second digit.
...
5(x+y)=10x+y ...(i)
5x+5y=10x+y
5y-y=10x-5x
4y=5x ...(ii)
...
The 10x+y is because the x digit is in the ten's column and it is worth more.
...
10x+y+9=10y+x ...(iii)
10x-x+9=10y-y
9x+9=9y

9(x+1)=9y
x+1=y ...(iv)
substitute x+1=y into (ii)
4(x+1)=5x ...(v)
4x+4=5x
4=5x-4x
x=4
substitute x=4 into (ii)
4y=5(4)
4y=20
y=20/4
y=5
...
The first digit is 4. The second digit is 5.
The number is 45.

QUESTION: 175

An employer recruits experienced (x) and fresh workmen (y) for his firm under the condition that he cannot employ more than 9 people. x and y can be related by the inequality