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Worksheets4th EE pre-gtu 1
Total questions: 80
Worksheet time: 1hrs 20mins
Name
Class
Date
1.
In the market, who decides the product?
a)
sellers
b)
buyers
c)
transporters
d)
suppliers
2.
decisions=_________________________________________
a)
objective information+ subjective judgement
b)
subjective information +objective judgement
c)
subjective information + subjective judgement
d)
objective information +objective judgement
3.
The non-programmed decisions are __________ and non-systematic
a)
permanent
b)
ad-hoc
c)
seconndary
d)
perpetual
4.
To conduct market research for studying the decrease in sales falls under _______________ decision.
a)
unique
b)
routine
c)
programmed
d)
non-programmed
5.
When any one of the alternatives is to be chosen from two or more alternatives, it is known as ___________________ decision
a)
exhaustive
b)
collective
c)
mutually exclusive
d)
dichotomical
6.
What is the order of ranking in collectively exhaustive decision?
a)
lower priority to hugher priority
b)
higher priority to lower priority
c)
lower rank to higher rank
d)
higher rank to lower rank
7.
To develop gardening to beutify the campus is an example of _______________ decision.
a)
complementary
b)
collectively exhaustive
c)
mutually exclusive
d)
dichotomical
8.
Learning curve method and trial and error method of decision making helps in _______________ decision method.
a)
Intuition
b)
opinions
c)
game theory
d)
experience
9.
Operation Research is also known as _______________________ .
a)
operational opinion
b)
operational science
c)
management science
d)
managerial opinion
10.
Except EOQ model, another important inventory model is known as _____________.
a)
ordering network
b)
reordering network
c)
ordering level
d)
reordering level
11.
One of the alternatives is not a game theory, which is it?
a)
win-win
b)
lose-lose
c)
win-lose
d)
lose-win
12.
_____________ method is applied when the future outcome can be known only after a lapse of time.
a)
decision-tree method
b)
Inventory
c)
break even analysis
d)
game theory
13.
Most of the business decisions are ___________ .
a)
opportunity-based
b)
time-based
c)
profit-based
d)
corporate-based
14.
The decision about identifying the deviations between the budgeted figures and the actual performance is taken under___________ element of management.
a)
Planning
b)
Organizing
c)
Directing
d)
Controlling
15.
When there is decrease in a price of a product, the demand________________.
a)
cannot say
b)
increases
c)
remains stable
d)
decreases
16.
In a cash flow series:
a)
uniform gradient signifies that an income or disbursement changes by the same amount in each interest period
b)
Either an increase or decrease in the amount of a cash flow is called the gradient
c)
the gradient in the cash flow may be positive or negative
d)
all of these
17.
The ratio of current assets to current liabilities is known as
a)
liquidity ratio
b)
current ratio
c)
acid-test ratio
d)
debts ratio
18.
The point of intersection of the supply curve and demand curve is known as ___________________ point.
a)
equilibrium point
b)
balance point
c)
breakeven
d)
margin
19.
If the cost of inputs increases, the cost of product______________
a)
decrease
b)
increases
c)
stability
d)
cannot say
20.
Relationship between annual nominal rate of interest and annual effective rateof interest , if frequency of compounding is greater than one:
a)
Effective rate> Nominal rate
b)
effective rate < Nominal rate
c)
Effective rate= Nominal rate
d)
None of these
21.
Pick up the correct statement from the following:<br />
a)
The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy
b)
The manifestation of the time value of money is termed as interest
c)
Interest on borrowing = present amount owed - original loan
d)
All of these
22.
Pick up the correct statement from the following:<br />
a)
An annuity is a series of equal payments occurring at equal period of time
b)
Annuity is called an equal payment or uniform payment series
c)
An annuity may have periods of time of any length but should always be of equal length
d)
All of these
23.
Pick up the correct statement from the following:<br />
a)
The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios
b)
The ratio of gross profit and net sales is called profitability in relation to sales ratio
c)
The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio
d)
All of these
24.
Pick up the correct statement from the following:
a)
The receipts and disbursements in a given time interval are referred to as cash flow
b)
The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention
c)
The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found
d)
All of these
25.
Which of the following cost curves is never ‘U’ shaped?<br /><br />
a)
Average cost curve
b)
Marginal cost curve<br />
c)
Total cost curve
d)
Fixed cost curve
26.
When shape of average cost curve is upwards, marginal cost:<br />
a)
Must be decreasing
b)
Must be constant
c)
Must be rising
d)
Any of these
27.
Who is called as the 'founding father of modern economics'?<br />
a)
Adam Smith
b)
John Maynard Keynes
c)
F. Hayek
d)
Samuelson
28.
What are Capital goods?<br />
a)
Goods used for consumption in the production process
b)
Goods such as tools, machinery, etc which are used to create final consumer goods
c)
Goods and services that are consumed fully when purchased by the consumers
d)
None of the above
29.
What is the term in economics for the consumption of fixed capital?
a)
Investment
b)
Value added
c)
Production flow
d)
Depreciation
30.
What is the sum total of gross value added of all the firms in the country added with the net factor income from abroad?
a)
Gross Domestic Product
b)
Gross National Product
c)
Net Domestic Product
d)
Net National product
31.
Laissez-faire economics refers to:<br /><br />
a)
a term denoting economic transactions carried out by the State/government
b)
economic transactions in private parties where there is no intervention by the State/government
c)
a branch of socialism focusing on welfare economics
d)
None of the above
32.
Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.<br /><br /><br />
a)
610
b)
612
c)
614
d)
616
33.
Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly
a)
Rs 2520
b)
Rs 2521
c)
Rs 2522
d)
Rs 2523
34.
Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is
a)
Rs 1650<br /><br /><br />
b)
Rs 1750
c)
Rs 1850
d)
Rs 1950
35.
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum
a)
Rs 600
b)
Rs 625
c)
Rs 650
d)
Rs 675
36.
A project may be regarded as high risk project when
a)
It has smaller variance of outcome but a high initial investment<br />
b)
It has larger variance of outcome and high initial investment
c)
It has smaller variance of outcome and a low initial investment<br />
d)
It has larger variance of outcome and low initial investment
37.
Projects with __________ are preferred
a)
Lower payback period
b)
Normal payback period
c)
Higher payback period
d)
Any of the above
38.
If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is
a)
Marginal cost
b)
Prime cost
c)
All variable overheads
d)
None of the above
39.
While computation of profit in marginal costing
a)
Total marginal cost is deducted from total sales revenues
b)
Total marginal cost is added to total sales revenues
c)
Fixed cost is added to contribution
d)
None of the above
40.
Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is 4,000 and variable cost is Rs 30,000.
a)
Rs 10,000 and Rs 2.5
b)
Rs 70,000 and Rs 3.5
c)
Rs 36,000 and Rs 3.6
d)
None of the above
41.
Which of the following statements are true?
a)
Contribution doesn’t include fixed cost whereas profit includes fixed cost.
b)
Contribution is not based on the concept of marginal cost.
c)
Contribution above breakeven point becomes profit.
d)
All of the above
42.
The cost reduction technique in comparison to the worth of a product is known as
a)
Reverse engineering
b)
Value engineering
c)
Material engineering
d)
Quality engineering
43.
Value is the cost directly proportionate to
a)
Price
b)
Function
c)
Product Material
d)
All of the above
44.
What is the cause of inflation?
a)
If money supply increases.
b)
If the production rate falls.
c)
If money supply increases and production rate falls.
d)
Both money supply and production decreases
45.
When both unemployment and inflation increase, the situation is termed as,-
a)
Parainflation
b)
Hyperinflation
c)
stagflation
d)
Galloping inflation.
46.
What is an essential attribute of inflation?
a)
fall in production
b)
increase in prices
c)
absence of black market
d)
Presence of black market.
47.
A steady increase in the general level of prices as a result of excessive increase in aggregate demand as compared to aggregate supply is termed as :
a)
demand-pull inflation
b)
cost-push inflation
c)
Stagflation
d)
Structural inflation
48.
What is Cost-Push inflation?
a)
Increasing money supply
b)
Increasing indirect tax
c)
Population increase
d)
expenditure increase unnecessarily
49.
Consumer Price Index (CPI) measures the price of…
a)
Goods only
b)
Both goods and services
c)
Services only
d)
None of these
50.
What is the base year of Consumer Price Index (CPI)?
a)
2015
b)
2004
c)
2012
d)
2001
51.
In cash flow statement, the item of interest is shown in<br />A) Operating Activities<br />B) Financing Activities<br />C) Investing Activities
a)
Both A and B<br />
b)
Both A and C
c)
Both B and C
d)
A, B, C
52.
Cash flow statement is based upon _________ while Funds Flow Statement recognizes _______.
a)
Cash basis of accounting, accrual basis of accounting
b)
Accrual basis of accounting, cash basis of accounting
c)
Both are based on cash basis of accounting
d)
None of these
53.
Cash Flow Statement is prepared from
a)
Profit and loss account
b)
Balance Sheet
c)
Additional Information
d)
All of these
54.
While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
a)
Indirect method
b)
Direct method
c)
Both a & b
d)
None of these
55.
Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:
a)
Rs 45,000
b)
Rs 35000
c)
Rs 55,000
d)
Rs 15,000
56.
The opportunity cost of good A in terms of good B is equal to the
a)
ratio of the price of good B to the price of good A.
b)
ratio of the price of good A to the price of good B.
c)
price of good A minus the price of good B.
d)
price of good B minus the price of good A.
57.
The quantity demanded is
a)
the amount of a good that consumers plan to purchase at a particular price.
b)
independent of the price of the good.
c)
independent of consumers' buying plans.
d)
always equal to the equilibrium quantity.
58.
Which of the following is consistent with the law of demand?
a)
A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.
b)
An increase in the price of a soda causes a decrease in the quantity of soda demanded.
c)
An increase in the price of a tape causes an increase in the quantity of tapes demanded.
d)
A decrease in the price of juice causes no change in the quantity of juice demanded.
59.
The law of demand implies that demand curves
a)
shift leftward whenever the price rises.
b)
shift rightward whenever the price rises.
c)
slope down.
d)
slope up
60.
The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.<br />
a)
falls; falls
b)
rises; falls
c)
rises; rises
d)
falls; rises
61.
A normal good is a good for which
a)
there are very few complements.
b)
demand decreases when income increases.
c)
demand increases when income increases.
d)
there are few substitutes.
62.
By definition, an inferior good is a
a)
normal substitute good.
b)
good for which demand decreases when its price rises.
c)
want that is not expressed by demand.
d)
good for which demand decreases when income increases.
63.
A reduction in the price of a good<br />
a)
does not shift the good's demand curve leftward but does decrease the quantity demanded.
b)
shifts the good's demand curve leftward but does not decrease the quantity demanded.
c)
shifts the good's demand curve leftward and also decreases the quantity demanded.
d)
neither shifts the good's demand curve leftward nor decreases the quantity demanded.
64.
The quantity supplied of a good or service is the quantity that a producer
a)
actually sells at a particular price during a given time period.
b)
should sell at a particular price during a given time period.
c)
is willing to sell at a particular price during a given time period.
d)
needs to sell at a particular price during a given time period.
65.
A supply curve shows the relation between the quantity of a good supplied and
a)
the price of the good. Usually a supply curve has negative slope.
b)
income. Usually a supply curve has positive slope.
c)
income. Usually a supply curve has negative slope.
d)
the price of the good. Usually a supply curve has positive slope.
66.
Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the
a)
demand curve for good B rightward.
b)
demand curve for good B leftward.
c)
supply curve of good B rightward
d)
supply curve of good B leftward.
67.
Over the past decade technological improvements that have lowered the cost of producing an automobile have increased
a)
the demand but not the supply of automobiles.
b)
both the supply and the demand for automobiles.
c)
the supply but not the demand for automobiles.
d)
neither the supply nor the demand for automobiles.
68.
Goods A and B are complementary goods (in consumption). The cost of a resource used in the production of A decreases. As a result,
a)
the equilibrium price of B will fall and the equilibrium price of A will rise.
b)
the equilibrium prices of both A and B will rise.
c)
the equilibrium price of B will rise and the equilibrium price of A will fall.
d)
the equilibrium prices of both A and B will fall.
69.
Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
a)
rightward and the equilibrium price of leather shoes will fall.
b)
leftward and the equilibrium price of leather shoes will rise.
c)
leftward and the equilibrium price of leather shoes will fall.
d)
rightward and the equilibrium price of leather shoes will rise.
70.
The price will fall and the equilibrium quantity might increase, decrease, or stay the same when the
a)
demand for a good increases and the supply of it decreases.
b)
demand and the supply of a good both decrease.
c)
demand for a good decreases and the supply of it increases.
d)
demand and the supply of a good both increase.
71.
A cost benefit analysis consists of (i)finding the direct and indirect cost of developing, implementing and running the system<br />(ii)finding out the tangible and intangible benefit of the system<br />(iii)finding the investment to be made in the system<br />(iv)finding the profit which will accrue from the system
a)
iii and iv
b)
i and iv
c)
ii and iii
d)
i and ii
72.
Pick the indirect cost from the following
a)
cost of new forms
b)
cost of training analysts and users
c)
cost of software to be brought
d)
cost of fact gathering
73.
In present value method one has to account for
a)
interest rate prevalent at a given time
b)
exchange rate prevalent at a given time
c)
sales tax rate prevalent at a given time
d)
both income and sales tax rates prevalent at a given time
74.
Shareholders wealth increases with the increase in ___<br />
a)
EPS
b)
Market value of the firm
c)
Dividend & market value of the firm
d)
Market price of the equity share
75.
Which of the following has Net profit as basis for calculation
a)
Net present value
b)
Average rate of return
c)
Internal rate of return
d)
Payback period
76.
Listed companies can be valued at<br />
a)
Book Value
b)
Market value
c)
Salvage value
d)
Liquidation value
77.
What does the price-to-earnings ratio (P/E) tell you?
a)
How much each of a company's products sells for on average.
b)
How much investors are willing to pay per unit of a company's earnings.
c)
How much tax per unit investors are willing to pay.
d)
None of the above
78.
Making gifts of money, goods, or time to help non-profit organizations, groups or<br />individuals is:<br />
a)
Corporate social marketing
b)
Cause marketing
c)
Cause-related marketing
d)
Corporate philanthropy
79.
The _______ is defined as the present value of all cash proceeds to the investor in the<br />stock.
a)
dividend payout ratio
b)
intrinsic value
c)
market capitalization rate
d)
plowback ratio
80.
Companies may adopt an aggressive or a conservative working capital policy. An<br />aggressive policy means that a company
a)
holds high levels of cash and inventories
b)
expects a lower level of profitability
c)
has a low level of flexibility
d)
faces a low level of risk
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