UGC NET Management Partially solved Paper - June 2009



December 2009 UGC NET Management solved paper

1. The elasticity of demand indicates -- A

(A) The rate of response of demand to a change in price.

(B) The rate of change of demand to a change in income.

(C) The change in the tastes of consumers at different prices.

(D) The rate of response of demand to a change in supply.


2. A rightward shift in supply curve indicates ----B

(A) A decrease in supply

(B) An increase in quantity demanded

(C) An increase in supply

(D) Law of variable proportion


3. Which of the following is the condition of equilibrium for the monopolist ? ----A

(A) MR = MC (B) MC = AR
(C) AR = MC = Price (D) AC = AR


4. If the demand curve is a rectangular hyperbola, elasticity is ---A

(A) 1 (B) 0
(C) infinity (D) less than one


5. If both supply and demand increase by the same proportion, ---B

(A) Quantity remains constant (B) Price remains constant
(C) Price increases (D) Quantity increases


6. What leads to rationing and black marketing under perfect competition ? ---D

(A) Price support (B) Excess demand
(C) Decrease in supply (D) Price control


7. In Maslow’s need hierarchy theory, which of the following is not high order needs ? ---A

(A) Safety (B) Social
(C) Esteem (D) Self-Actualisation

8. Feeling arising out of inadequate definition of roles is known as ---A

(A) Role ambiguity (B) Role conflict
(C) Role perception (D) Role expectation

9. A type of group discussion process in which members of the group are encouraged to generate as many imaginative and creative ideas in a relatively short period of time is known as ---A

(A) Brain storming (B) Group working
(C) Simulation (D) Group effect


10. The amount of satisfaction an individual anticipates from a particular outcome is known as ---C

(A) Theory Y (B) Theory Z
(C) Valence (D) Stress


11. A personality characteristic indicating one’s willingness to do whatever it takes to get one’s own way is known as ----

(A) Locus of control (B) Machiavellism
(C) Job characteristic model (D) Personality legitimacy


12. The process of studying and collecting information relating to a specific job is known as--- B

(A) Motion study (B) Job analysis
(C) Job specification (D) Job enrichment


13. The horizontal expansion of jobs is termed as --- A

(A) Job enlargement (B) Job enrichment
(C) Job sharing (D) Job involvement


14. A bargaining which is based upon zero-sum game is known as ---

(A) Integrative bargaining (B) Principled bargaining
(C) Distributive bargaining (D) None of these


15. The final link in the communication process that puts the message back into the system as a check against misunderstandings is described as

(A) Decoding (B) Feedback
(C) Feedback Loop (D) None of these

16. In the ‘Managerial grid’ 9, 1 style is termed as --- C

(A) Team Management (B) Country Club Management
(C) Authority Obedience (D) Improvised Management


17. Which of the following is not one of the 5s of housekeeping ?

(A) Sort (B) Systemize
(C) Specialize (D) Shine


18. Internal rate of return method applied for capital budgeting decision ---B

(A) allows to take different discount factors.

(B) uses cost of capital as discount factor.

(C) may give more than one IRR.

(D) distinguishes between the IRR for lending and borrowing decision.


19. Beta in the context of security analysis indicates ----A

(A) Systematic risk (B) Unsystematic risk
(C) Total risk (D) All of the above


20. Assuming constant rate of growth of dividend, value of share will be equal to ---B

(A) P0 = D0 (B) P0 = D1
r – g r – g
(C) P = D0 (D) P = D0 + g

r + g r
1 1


21. Theoretically, with the issue of rights share the value of existing shares----C

(A) will increase (B) will not change
(C) will reduce (D) may increase or decrease


22. When the cash flow outcomes of succeeding period depends on what has happened before, the probabilities of succeeding period are known as ---

(A) joint probabilities (B) conditional probabilities
(C) simple probabilities (D) decision tree


23. A high risk, high-yield often unsecured bond rated below investment grade is known as --- C

(A) Income-bond (B) Subordinated debentures
(C) Junk bond (D) Serial bond

24. Who coined the term 4 Ps ? --D

(A) Philip Kotler (B) Stanton
(C) Peter Drucker (D) Mc Carthy


25. In the buying decision process, what is the term used for a person who first suggests buying the product ? ---C

(A) Consumer (B) Decider
(C) Initiator (D) Influencer


26. Which of the following is in order ? ---D

(A) Product, place, price and promotion.

(B) Price, product, promotion and place.

(C) Promotion, place, product and price.

(D) Product, price, place and promotion.


27. Which of the demographic variable is not used by marketers for demographic segmentation ? ----D

(A) Income (B) Gender
(C) Family life cycle (D) Poverty


28. Which of the following indicates the distinction between Advertising and Publicity ? ---C

(A) Advertising is expensive, publicity is less expensive.

(B) Advertising is through T.V., publicity is through print media.

(C) Advertising is a paid form of communication, Publicity is not a paid form of communication.

(D) Advertising is through film stars, Publicity is through cricketers.


29. Which of the following order about product life cycle is correct ? ---B

(A) Introduction, Maturity, growth and decline.

(B) Introduction, growth, maturity and decline.

(C) Introduction, decline, maturity and growth.

(D) Growth, maturity, decline and introduction.


30. Companies that attack other firms including market leader in an attempt to build market share are called --- B

(A) Market followers (B) Market challengers
(C) Market penetrators (D) Market Nichers
31. Tactical production planning decision includes --- C

(A) Layout planning (B) Machine loading
(C) Production process (D) Plant location


32. Which of the following is not to be considered for plant location decision ? ---D

(A) Availability of labour (B) Availability of power
(C) Availability of raw material (D) Brand image


33. Moving average forecasting is used to

(A) establish the trend of the past

(B) forecast the current demand

(C) forecast market competition

(D) forecast Quasi demand


34. Work measurement is essential for ---D

(A) Labour utilization and efficiency

(B) Determining the delivery dates

(C) Introducing Financial incentive schemes

(D) All of the above


35. E O Q refers to the quantity for which

(A) fixed cost is equal to variable cost

(B) carrying cost is equal to ordering cost

(C) average cost is equal to marginal revenue

(D) total contribution minus cost of goods


36. A company is producing steel rods. Assuming that the length of steel rods follows normal distribution with mean 10 inches & variance equal to 0.04 sq. inches. The standard error of mean, when a random sample of 16 is taken, will be

(A) 4/10 (B) 2/20
(C) 2/40 (D) None of these


37. Judgement sampling to select the sampling units from population is termed as ---B

(A) Probability sampling (B) Non-probability sampling
(C) Systematic sampling (D) None of these
38. Wide area network is ---B

(A) Network of computers spread over a small geographical area.

(B) Network of computers spread over a large geographical area.

(C) Network of computers in a room.

(D) None of these.


39. Correlation coefficient between two variables X & Y is calculated as 0.63. If the
measurements of X & Y are changed to U = X – 10 & V = Y + 5 the new value of
5 10

correlation coefficient will be
(A) 0.063 (B) 0.315
(C) 0.63 (D) None of these


40. A person appears in an interview for a job in the two companies say X and Y. The chances of selection in company X is 0.7 and chances of selection in Y is 0.6. The probability of his selection in either of the two companies will be

(A) 0.42 (B) 0.88
(C) 0.50 (D) None of these


41. Which of the following helps a manager to identify the opportunities and threats in the competitive industry environment ?

(A) Analysis of organisational structure.

(B) Analysis of competitive forces.

(C) Analysis of operations.

(D) Market Research


42. Essence of strategy at strategic Business Unit level is

(A) How to build core competency

(B) How to gain competitive advantage

(C) How to gain market share

(D) All of the above


43. Which one of the following is a primary activity in a value chain ? ---A

(A) Operations (B) Firm infrastructure
(C) Technology development (D) Procurement

44. Business unit which holds a large market share in a mature and slow growing industry is called --D

(A) Star (B) Dog
(C) Question Mark (D) Cash cow

45. Which strategy requires a company to concentrate its efforts in one or more narrow segments instead of broad based strategy ? --B

(A) Cost leadership (B) Focus
(C) Differentiation (D) None of the above

46. Which of the following is an example of an external threat ? ---A

(A) New trade regulations (B) Global sales potential
(C) Economies of scale (D) Decreased competition


47. Which of the following has been entrusted with the responsibility of developing and supporting small business ? ---D

(A) IDBI (B) RBI
(C) NABARD (D) SIDBI


48. “Innovation and entrepreneurship” is a book written by ---D

(A) Philip Kotler (B) C. K. Prahlad
(C) Pradeep Khandwala (D) Peter F. Drucker


49. Strategising within value frame work is an approach of ---C

(A) Management (B) Administration
(C) Governance (D) Stake holders


50. Social responsibility means that a business ---

(A) Functions efficiently without harming the society

(B) Abjures the profit motive

(C) Keeps pollution under check

(D) Pays its Taxes to Government


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