General knowledge questions and answers

1. The slope at any point on an indifference curve is known an–
(A) marginal rate of substitution (B) the marginal rate of trade-off
(C) the trade-off rate (D) the marginal rate off indifference (Ans : A)
2. Assuming there is no government or foreign sector, if the MPC is 0.8, the multiplier is–
(A) 0.2 (B) 0.8 (C) 1.25 (D) 5 (Ans : D)
3. Salary payable by Government of India to an Indian Citizen for services outside India–
(A) is not taxable in India (B) is taxable in India
(C) is includable in total income for tax purpose (D) None of the above (Ans : B)
4. First of all, the Income Tax Act was passed in independent India–
(A) in 1956 (B) in 1962 (C) in 1961 (D) in 1990 (Ans : C)
5. Goodwill account is a–
(A) personal account (B) real account
(C) nominal account (D) None of the above (Ans : B)
6. Which of the following should not be considered in a make or buy decision ?
(A) Potential use of manufacturing capacity
(B) Variable costs of production
(C) Potential rental income from space occupied by production area
(D) Unchanged fixed cost (Ans : D)
7. A firm’s average total cost is Rs. 30 at 5 units of output and Rs. 32 at 6 units of output. The marginal cost of producing 6th units is–
(A) Rs. 2 (B) Rs. 12 (C) Rs. 32 (D) Rs. 42 (Ans : D)
8. The function of staff in line the staff organization is–
(A) take advice from line (B) advice the line (C) hold authority and responsibility
(D) fix responsibility for performance of tasks in a deninite manner upon certain individuals (Ans : B)
9. Which of the following committees examined and suggested Financial sector reforms in India–
(A) Abid Hussain Committee (B) Bhagawati Committee
(C) Chelliah Committee (D) Narsimham Committee (Ans : D)
10. In a free market economy the allocation of resources is deter-mined by–
(A) votes taken by customers (B) a central planning authority
(C) by customer preference (D) levels of profits of firms (Ans : C)
11. Which of the following assets in usually not depreciated–
(A) land (B) building (C) plant (D) furniture (Ans : A)
12. All the following are examples of profit centres within an airlines except–
(A) in flight magazine (B) merchandising
(C) aircraft maintenance (D) ticketing (Ans : C)
13. A partner in a firm–
(A) can not transfer his share to an outsider
(B) can transfer his share to an outsider with the consent of majority partners
(C) can transfer his share to an outsider without the consent of any other partner
(D) can transfer his share to an outsider with the consent of all other partners (Ans : D)
14. The main drawback of functional organization developed by Taylor is that it fails to recognise–
(A) downward flow of authority (B) principle of equity
(C) principle of unity of command (D) None of the above (Ans : C)
15. National income in India is estimated by–
(A) CSO (B) Finance Commission
(C) Planning Commission (D) Indian Statistical Institute (Ans : A)
16. The concept of mixed economy means–
(A) to have balanced development in the agriculture and industrial sector
(B) simultaneous development of the rural and urban sector
(C) to have equal distribution of wealth among the rural and urban poor
(D) simultaneous existence of private and public sector (Ans : D)
17. The most important economic function of stock exchange is to–
(A) safeguard the interest of investors (B) help in the capital formation in the country
(C) provide facilities for speculation (D) provide a ready market for old securities (Ans : D)
18. Which of the following goods or services could not be provided by a pure free market economy–
(A) public transport system (B) pension
(C) national defence (D) education (Ans : C)
19. The existence of a joint stock company is interrupted by–
(A) the death of its members (B) the death of its directors
(C) the transfer of share by member (D) None of these (Ans : D)
20. Delegation of authority results in–
(A) avoiding responsibility (B) centralisation of powers at top level
(C) cost lines of decision (D) enabling the managers to distribute their work load (Ans : D)

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