AFZAL ALI

TEST-1

(ALL CHAPTERS)

CMA- FOUNDATION

FUNDAMENTAL OF BUSINESS ECONOMICS AND MANAGEMENT

PART-A (BUISNESS ECONOMICS)

1. IN CASE OF AN INFERIOR GOOD, THE D. MARGINAL RATE OF TECHNICAL

INCOME ELASTICITY OF DEMAND IS SUBSTITUTION

A. POSITIVE

B. ZERO 5. ISOQUANTS ARE EQUAL TO

C. NEGATIVE A. PRODUCT LINE

D. INFINITE B. TOTAL UTILITY LINE

C. COST LINE

2. DEMAND CURVE HAS D. REVENUE LINE

A. POSITIVE SLOPE

B. NEGATIVE SLOPE 6. A COMPETITIVE FIRM IN THE SHORT RUN

INCUR LOSSES. THE FIRM PRODUCTION IF
C. ZERO SLOPE
A. P > AVC
D. NONE OF THIS
B. P = AVC

C. P < AVC
3. INDIFFERENCE CURVE ARE
D. NONE OF THIS
A. CONVEX TO ORIGIN

B. CONCAVE TO ORIGIN
7. COMPETITIVE FIRM IN THE LONG RUN
C. EITHER A OR B
EARN
D. NONE OF THIS
A. SUPER NORMAL PROFIT

B. NORMAL PROFIT
4. ____________ SHOWS THE OVERALL
C. LOSSES
OUTPUT GENERATED AT A GIVEN LEVEL OF
INPUT D. NONE

A. COST FUNCTION

B. PRODUCTION FUNCTION 8. _________ IS A IDEAL MARKERT

C. ISO COST A. MONOPOLY

B. PERFECT COMPETITION

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C. OLIGOPOLY 13. LAW OF VARIABLE PROPORTION IS VALID

D. MONOPOLISTIC COMPETITION
9. UNDER WHICH MARKET SITUATION
DEMAND CURVE IS LINEAR AND PARALLEL TO
X-AXIS
WHEN
A. ONLY ONE INPUT IS FIXED AND ALL INPUT
ARE KEPT VARIABLE
B. ALL FACTORS ARE KEPT CONSTANT
C. ALL INPUTS ARE VARIED IN THE SAME
PROPORTION

D. NONE
A. MONOPOLY

B. PERFECT COMPETITION
14. WHICH OF THE FOLLOWING IS KNOWN AS
C. OLIGOPOLY
ENVELOPE CURVE
D. MONOPOLISTIC COMPETITION
A. MC CURVE

B. AFC CURVE
10. LAW OF DEMAND
C. LAC CURVE
A. QUANTITATIVE STATEMENT
D. TFC CURVE
B. QUALITATIVE STATEMENT

C. BOTH
15. WHEN AR= 100 AND AC= 80, THEN THE
D. HYPOTHETICAL FIRMS MARKET

A. NORMAL PROFIT

11. THE TOTAL COST INCURRED FOR 10 UNIT B. SUPER NORMAL PROFIT
IS RUPEES 600 AND 20 UNIT IS RUPEES 1200.
C. NET PROFIT
FIND THE MARGINAL COST
D. GROSS PROFIT
A. RS.600

B. RS.300
16. WHAT ARE THE CONDITION FOR THE LONG
C. RS. 60
RUN EQUILIBRIUM OF THE COMPETITIVE
D. RS. 900 FIRM

A. LMC=LAC=P

12. TWO INDIFFERENCE CURVE NEVER B. AMC=SAC=LMC

INTERSECT EACH OTHER DUE TO
C. P=MR
A. DIFFERENT LEVEL OF SATISFACTION
D. ALL OF THIS
B. SAME LEVEL OF SATISFACTION

C. CONVEX TO ORIGIN
17. MR CURVE=AR= DEMAND CURVE IS A
D. CONCAVE TO ORIGIN FEATURE OF WHICH KIND OF MARKET

A. MONOPOLY

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B. PERFECT COMPETITION 2. WHICH OF THE FOLLOWING IS NOT THE

PRINCIPAL OF MANAGEMENT
C. OLIGOPOLY
A. UNITY OF DIRECTION
D. MONOPOLISTIC COMPETITION
B. COORDINATION

C. SCALAR CHAIN
18. THE GROWTH DEFINITION OF ECONOMICS
WAS INTRODUCED BY D. DISCIPLINE

A. J.M KEYNES AND P.A. SAMEULSON

B. ADAM SMITH 3. MANAGEMENT IS

C. ALFRED MARSHAL A. SCIENCE

D. ROBBINS B. ART

C. BOTH

19. THE RELATION BETWEEN MONEY SUPPLY D. NONE

AND PRICE LEVEL IS

A. INVERSE
4. FATHER OF SCIENTIFIC MANAGEMENT IS
B. NEUTRAL
A. FAYOL
C. PROPORTIONAL
B. F.W TAILOR
D. NON PROPORTIONAL
C. MASLOW

D. M.L.COOK
20. CASH BALANCE APPROACH WAS GIVEN BY

A. I.FISHER
5. FIRST FUNCTION OF THE MANAGEMENT IS
B. J.M KEYNES
A. CONTROL
C. G.CROWTHER
B. ORGANISATION
D. CAMBRIDGE UNIVERSITY PROFESSOR
C. DIRECTING

D. PLANNING
PART-B (MANAGEMENT)

6. THE PREMISES WHICH CANNOT BE

1. WHICH OF THE FOLLOWING IS NOT THE MEASURED IS KNOWN AS
FUNCTION OF MANAGEMENT
A. TANGIBLE PREMISES
A. PLANNING
B. INTANGIBLE PREMISES
B. ORGANISATION
C. FICTITIOUS PREMISES
C. UNITY OF COMMAND
D. NONE
D. CONTROL

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7. HOW MANY LEVELS ARE THERE IN THE 12. WHICH PRINCIPLE MANAGEMENT STATE
MANAGERIAL HIERARCHY ONE LOSS ONE PLAN

A. FOUR A. UNITY OF COMMAND

B. FIVE B. SCALAR CHAIN

C. THREE C. INITIATIVE

D. TWO D. UNITY OF DIRECTION

8. ________ IS NOT AN ELEMENT OF 13. FEATURES OF PLANNING ARE

DIRECTING FORMULATED AT

A. MOTIVATION A. LABORATORY

B. COMMUNICATION B. THE EXPERIENCE OF THE MANAGEMENT

PERSONNEL
C. PLANNING
C. THE EXPERIENCE OF THE CONSUMER
D. SUPERVISION
D. NONE

9. DIRECTING IS NEEDED FOR

14. PLANNING WHICH IS MADE FOR THE
A. ACHIEVING SUCCESS
OVERALL PERFORMANCE OF THE
B. INSECURE CO-OPERATION ORGANISATION IS KNOWN AS

C. ENCOURAGE INDISCIPLINE A. BASIC PLAN

D. DISCOURAGING EMPLOYEES B. MASTER PLAN

C. STRATEGIC PLAN

10. THE LAST STEP OF CONTROL IS D. DERIVATIVE PLAN

A. ESTABLISHMENT OF STANDARDS

B. MEASUREMENT OF PERFORMANCE 15. THE GENERAL GUIDELINES FOR DECISION

MAKING IS KNOWN AS
C. ADOPTING CORRECTIVE MEASURES
A. PROGRAM MAKING
D. COMPARATIVE EVALUATION OF
PERFORMANCE B. POLICY MAKING

C. STRATEGY MAKING

11. FOREMAN BELONG TO D. PROCEDURE MAKING

A. TOP MANAGEMENT

B. LOWER MANAGEMENT 16. _______ IS NOT CONSIDERED AS AN

ELEMENT OF DELEGATION
C. MIDDLE MANAGEMENT
A. ACCOUNTABILITY
D. NONE

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B POWER OF AUTHORITY 19. WHICH OF THE FOLLOWING IS NOT THE

FEATURES OF COORDINATION
C. RESPONSIBILITY OR DUTY
A. GROUP EFFORT
D. COORDINATION
B. UNITY OF EFFORT

C. FAULTY EVALUATION PROCESS

17. STAFFING IS
D. ESSENCE OF MANAGEMENT
A. A FUNCTION OF MANAGEMENT

B. NOT A FUNCTION OF MANAGEMENT

20. RELATIONSHIP ONE DEPARTMENT TO
C AN OBJECTIVE OF MANAGEMENT
ANOTHER DEPARTMENT, 1 ONE TO OTHER,
D. ALL THE ABOVE ONE GROUP TO ANOTHER GROUP ETC. ON
THE BASIS OF

A. PRINCIPLE OF CONTINUITY
18. HIRARCHY OF NEEDS WAS DEVELOPED BY
B. PRINCIPLE OF DIRECT CONTROL
A. MC GREGOR
C. PRINCIPLE OF INTEGRATION
B. HERZBERG
D. PRINCIPLE OF GROUP TASK
C. SPRIGEL

D. MASLOW

ALL THE BEST

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