CUET (UG) entrance exam Question Bank Solutions for Business Economics

In 1951, agriculture contributed to country's national income.

Per Capital Income increased at the rate of ______ per annum during the planning period.

According to UNO those countries are considered relative poor where per capita income is less than ______

Which of the following features are related to the domestic territory of a country?

Which of the following are the precautions that are taken while calculating national income by expenditure method? 

Payment of interest by a bank to an individual is ______ in the estimation of the National income

______ constitute the third element in the BoP which is the 'balancing item'.

Identify the correct pair of items from the following Columns I and II:

Which of the following points relates to surplus budget?

Which of the following is a component of a capital account?

Which of the following is the determinant of market demand?

Identify the correctly matched pair of items of Column A to that of Column B:

Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.

Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.

Economies of scale is larger for which type of bank.

Read the following hypothetical case study carefully and answer the questions follow on the basis of the same.

Agricultural Developmental Bank of Pakistan uses the production function approach for measuring bank outputs and costs. A translog cost function is estimated to provide an assessment of the bank's scale and scope efficiency, and to quantify the extent to which its production costs are sensitive to the size and output mix. Results show that the bank enjoys both overall and product-specific economies of scale and, therefore, there exists scope for the bank to expand its operations at a declining average cost. Even though bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production. This implies that as the bank branches grow larger in size in terms of both loan and deposit accounts, they move closer to attaining increasing returns to a factor. It is also shown that the marginal costs of servicing both loan and deposit accounts decline as bank branches grow larger in size in terms of either the number of loans or the number of deposits. This confirms that branches operating at a larger scale of production have attained greater cost-efficiency in terms of servicing the loan and deposit accounts.

When the banks grow in size, they move closer to achieving ______ returns to factor.

Identify which of the following statements is true:

A company located in India receives a loan from a company located abroad. How is this transaction recorded in India's Balance of Payments Account?

Unforeseen obsolescence of fixed capital assets during production is:

Which of the following is not the function of the central bank?

Identify the correctly matched pair from Column A to Column B:

Payment of interest by a firm to a bank is ______ in the estimation of National Income.