Professional Documents
Culture Documents
Online Examination:
Section - I Instructions:
- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).
Page 1 of 7
SCDL
1) Sometimes change in demand takes place even though there is no change in price. What are the factors
which affect demand?
(5)
A change in demand takes place when the basic factors affecting demand other than price changes. An
increase or decrease in demand is brought about by many kinds of changes. Some of the important
changes are: Change in income Change in the pattern of income distribution. Change in tastes, habits and
preferences. Change in fashions and customs. Change in the supply of the substitutes and in their prices.
Change in the supply or demand of the complementary goods and change in their prices. Change in
population. Advertisement and publicity persuasion.
A firm or a business enterprise will try to maximise its profit. Profit is the difference between total revenue
and total cost and the firm will make an attempt to maximise this difference. Thus, the firm will stabilise
its activity at the point where it achieves the maximum profit. This point is called equilibrium. Equilibrium
of a firm will be established when its output maximises its money profit.
In theory, it may be assumed that a firm produces only one product. In practice, it may be producing a
number of products, should the opportunity arise. Opportunity for producing multiple products arises due
to: Excess capacity: The excess capacity could be in manufacturing, management or distribution.
Seasonal variation: It may be possible to use the same machinery for manufacturing some other goods in
the off season. Cyclical changes: The demand for certain goods shows downward trend due to business
cycles. Secular shifts: As per changes in tests and preferences of consumers, the firm may have to add new
products in the product line. Vertical Integration of production process may also offer opportunities for
increasing the number of products. Research: Availability of new methods of production.
Section 1 is complete.
Section - II Instructions:
Page 2 of 7
SCDL
Total Questions : 27
Total Marks : 60
3) A downward movement from one point to another point on the same demand curve implies
(2)
1] Increase in demand
2] Decrease in Demand
3] No change in Demand
4] Seasonal Demand
5) A plant is an economic unit which takes various decisions related to production and distribution.
(1)
1] True
2] False
6) When the outputs increased from 4 units to 5 units, the total revenue went up from Rs.100 to Rs.120 and
the total cost went up from Rs.80/- to Rs.95/-. In this case, the profit of the firm will be :BLANK
(1)
1] Rs.600/-
2] Rs.120/-
3] Rs.125/
4] Rs.25/-
Page 3 of 7
SCDL
(2)
1] prohibited
2] permitted
3] free
4] subject to licence
10) Sick public enterprises should be referred to :BLANK for the purpose of rehabilitation .
(1)
1] IFCI
2] IDBI
3] RBI
4] BIFR
11) In cost benefit analysis for finding the present value of future cash flows, one has to make use of
(2)
1] discount rate
2] compound rate
3] flat rate
4] simple rate
Page 4 of 7
SCDL
16) Withdrawal of close substitutes to the commodity in question will increase its demand.
(1)
1] True
2] False
17) If the price of a commodity increases from Rs.10,000/- per unit to Rs.15,000/- per unit and if the quantity
supplied does not change then it is :BLANK elasticity of supply
(1)
1] unitary
2] less than unitary
3] more than unitary
4] zero
18) When the inputs increased from 9 units to 10 units the total product went up from 100 units to 120 units.
In the case average product is
(2)
1] 20 units
2] 120 unit
3] 12 units
4] 100 units
20) Addition to the total revenue due to sale of one more unit is called as
(2)
1] Profit per unit
2] Gross profit
3] Average Revenue
4] Marginal Revenue
Page 5 of 7
SCDL
22) According to Keynes the motives for holding cash for liquidity preference are
(4)
1] The speculative motive
2] The reserve motive
3] The transactions motive
4] The precautionary motive
23) Food corporation of India buys agricultural products at prices which ensure that the farmers make
(2)
1] a certain minimum loss
2] a certain minimum profit
3] a certain normal profit
4] a certain maximum profit
24) Industries where security concerns are predominant are reserved for
(2)
1] public sector
2] private sector
3] joint sector
4] multi national companies
27) The economists who defined the term 'market' different from that of the traditional sense are
(4)
1] Cournot
2] Jevons
3] Keynes
4] Samulson
Page 6 of 7
SCDL
Section 2 is complete.
Page 7 of 7