Art Archives

11. Formula of 1 – unexplained variation / total variation is used to calculate

A) coefficient of determination

B) coefficient of index

C) coefficient of residual

D) coefficient of prediction

✅ ANSWER: A
Formula of 1 – unexplained variation / total variation is used to calculate coefficient of determination.

12. Consumer’s surplus left with the consumer under price discrimination is

A) Maximum

B) Minimum

C) Zero

D) Not predictable

✅ ANSWER: C
Consumer’s surplus left with the consumer under price discrimination is Zero.

13. If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be

A) 11000 units

B) 13000 units

C) 10000 units

D) 7000 units

✅ ANSWER: D
Budget production = Budget sales + Ending inventory – Beginning inventory
= 8000 + 2000 – 3000 = 7000 units.

14. Stock portfolio with highest book to market ratios is considered as

A) H portfolio

B) L portfolio

C) S portfolio

D) B to M portfolio

✅ ANSWER: A
Stock portfolio with highest book to market ratios is considered as H portfolio.

15. When output of earlier process is transferred at a profit to the subsequent process, it is ________.

A) inter departmental profit

B) abnormal gain

C) inter process profit

D) manufacturing profit

✅ ANSWER: C
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.

16. Insufficient working capital results in __________.

A) Block of cash

B) Loosing interests

C) Lack of production

D) Lack of smooth flow of production

✅ ANSWER: D
Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.

17. At the point of satiety, marginal utility is

A) Zero

B) Positive

C) Maximum

D) Negative

✅ ANSWER: B
At the point of satiety, marginal utility is positive. Goods where there is a point of satiety. This situation is common in food. To the point of satiety, the marginal utility is positive; after that point, the marginal utility is negative.

18. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

A) 2.09%

B) -6.00%

C) 17.50%

D) 6.00%

✅ ANSWER: D
Constant growth rate = Expected rate of return – Expected dividend yield
= 11.5% – 5.5% = 6.00%

19. Which among the following is not a Day Care procedure?

A) Byepass surgery

B) Cataract

C) Lithotripsy

D) Piles

✅ ANSWER: A
Byepass surgery is not a Day Care procedure. A day care procedure is a surgery or medical procedure that formerly required a prolonged stay in hospital but can now be completed in less than 24 hours.

20. _______ is the first state to ratify GST bill.

A) Andhra Pradesh

B) Assam

C) Arunachal Pradesh

D) Bihar

✅ ANSWER: B