Paper 3 has been removed from NET from 2018 (Notification)- now paper 2 and 3 syllabus is included in paper 2. Practice both paper 2 and 3 from past papers.

NTA NET December 2018 Commerce Part 1

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Q-1 Cardinal utility analysis of consumer’s behavior is based on which combination of the following assumptions:

  1. Utility is measurable in terms of cardinal numbers.

  2. Constancy of the marginal utility of money.

  3. Utilities of different goods are interdependent.

  4. Gossen’s first law of consumption.

Choose the correct answer from the code given below:

Code:

Options:-

  1. Only (i), (ii) and (iv)

  2. Only (iii) and (iv)

  3. Only (ii), (iii) and (iv)

  4. Only (i) and (ii)

Q-2 Given is the information related to a house:

Information About House
Information about house

Municipal Value (M.V.)

Rs.1,50,000

Fair Rent

Rs.1,80,000

Standard Rent

Rs.1,60,000

Actual Rent

Rs.20,000 pm

Municipal tax paid by owner is 20% of M.V. Unrealised rent RS.40,000 (conditions of rule 4 satisfied). What is the annual value of the house?

Options:-

  1. RS. 2,10,000

  2. RS. 1,60,000

  3. RS. 1,50,000

  4. RS. 1,70,000

Q-3 Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : Technological change and skill requirements have been made a subject of investigation in an organization.

Reason (R): The neo-classical economic theory stated that technological changes require a broader variety of skills and higher average skills from the workers.

Code:

Options:-

  1. Both (A) and (R) are incorrect.

  2. (A) is correct but (R) is incorrect.

  3. Both (A) and (R) are correct but (R) is not the right explanation of (A).

  4. Both (A) and (R) are correct and (R) is the right explanation of (A).

Q-4 Which one of the following is not the fund based business of commercial banks?

Options:-

  1. RTGS/NEFT transactions

  2. Acceptance of deposits

  3. Overdraft facility

  4. Issuance of letters of credit

Q-5 Choose the correct code for the following statements correct or incorrect.

Statement I: An identifiable group of people contributing their efforts towards attainment of goals is called organization.

Statement II: In its broadest sense, organization refers to the relationship between the various factors present in a given Endeavour.

Code:

Options:-

  1. Statement II is correct, but I is incorrect.

  2. Statement I is correct, but II is incorrect.

  3. Both the statements I and II are correct.

  4. Both the statements I and II are incorrect.

Q-6 Choose the correct code for the following statements being correct or incorrect.

Statement I: The geometric mean of the two regression coefficients of X and Y variables gives the value of the coefficient of correlation.

Statement II: If the population distribution is not normal and a sampling distribution of mean is prepared by taking small sized samples, the sampling distribution of mean is not normal.

Code:

Options:-

  1. Statement I is correct, but II is incorrect.

  2. Both the statements I and II are incorrect.

  3. Statement II is correct, but I is incorrect.

  4. Both the statements I and II are correct.

Q-7 Critical path indicates which one of the following?

Options:-

  1. Recorded time of completing a task

  2. Average time of completing a task

  3. Longest route of completing a task

  4. Shortest route of completing a task

Q-8 Choose the correct code for the following statements being correct or incorrect.

Statement I: Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.

Statement II: IPR does not include trade secrets and moral rights.

Code:

Options:-

  1. Both the statements I and II are correct.

  2. Both the statements I and II are incorrect.

  3. Statement I is correct, but II is incorrect.

  4. Statement II is correct, but I is incorrect.

Q-9 In which one of the following modes of entry into foreign market are risk and profit potential the highest?

Options:-

  1. Direct exporting

  2. Joint ventures

  3. Indirect exporting

  4. Direct investment

Q-10 For performance assessment of employees, “helping to meet legal requirements” is the application of which one of the following?

Options:-

  1. Organizational maintenance purpose

  2. Developmental purpose

  3. Administrative purpose

  4. Documentation purpose

Q-11 The inverse relationship between the variation in the price and the variation in the quantity demanded is not due to

Options:-

  1. Law of substitution

  2. Gossen’s laws of consumption

  3. Entry and exit of buyers

  4. Price effect

Q-12 X Ltd. Forfeited 40 shares of RS.10 each and on which RS.4 per share were paid. If the forfeited shares are reissued as RS.8 per share paid up, what is the minimum price the company must charge?

Options:-

  1. RS.2 per share

  2. RS.10 per share

  3. RS.4 per share

  4. RS.8 per share

Q-13 A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is RS.300, what will be the selling price?

Options:-

  1. RS.400

  2. RS.100

  3. RS.200

  4. RS.300

Q-14 According to Donald Kirkpatrick, training programmes can be evaluated at four levels.

Indicate the code of correct sequence from the following:

  1. Result

  2. Reaction

  3. Learning

  4. Behavior

Choose the correct answer from the code given below:

Code:

Options:-

  1. (ii), (iii), (iv), (i)

  2. (iv), (iii), (ii), (i)

  3. (iii), (iv), (i), (ii)

  4. (i), (ii), (iii), (iv)

Q-15 Arrange the following stages of staffing in correct sequence and indicate the code of correct sequence.

  1. Performance appraisal

  2. Recruitment

  3. Transfers

  4. Selection

  5. Induction and orientation

Choose the correct answer from the code given below:

Code:

Options:-

  1. (ii), (i), (iv), (v), (iii)

  2. (i), (ii), (iv), (v), (iii)

  3. (iv), (ii), (v), (iii), (i)

  4. (ii), (iv), (v), (i), (iii)

Q-16 Which one of the following demands states consumers are adequately buying all the products put into the marketplace?

Options:-

  1. Irregular demand

  2. Overfull demand

  3. Full demand

  4. Latent demand

Q-17 Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): The multilateral trading system is an attempt by governments to make the business environment stable and predictable.

Reason (R): Promising not to raise trade barriers can be as important as lowering one, because the promise gives businesses a clearer view of their future market opportunities.

Code:

Options:-

  1. (A) is correct but (R) is incorrect.

  2. Both (A) and (R) are incorrect.

  3. Both (A) and (R) are correct and (R) is the right explanation of (A).

  4. Both (A) and (R) are correct but (R) is not the right explanation of (A).

Q-18 Which one of the following is not an advantage of external recruitment?

Options:-

  1. Scope for resentment, jealousies and heartburn are avoided

  2. Benefits of new skills, new talents and new experiences to organizations are available

  3. Compliance with reservation policy becomes easy

  4. Good performance is rewarded

Q-19 The probable error of the coefficient of correlation (r) is calculated by which one of the following formulae?

Options:-

  1. 0.6745

  2. 0.6745

  3. 0.6745

  4. 0.6745

Q-20 Match the items of List I with the items of List II and choose the correct answer from the code given below.

List 1 and List 2
List 1 and List 2

List I

List II

  1. Balance of trade

  • Imports and exports of goods and services and unilateral transfer of goods and services

  • Current account

  • Transactions leading to changes in the financial assets and liabilities of a country

  • Balance of payments

  • All economic transactions between a county’s residents and residents of other countries

  • Capital account

  • Value of exports and imports of a country

Code:

Options:-

  1. (a)-(iv), (b)-(i), (c)-(iii), (d)-(ii)

  2. (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)

  3. (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

  4. (a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)

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