TANCET MBA Question Paper-2011
PART-I
Directions : This section comprises two passages. After each passage questions consisting of items relating to the preceding passage are given. Evaluate each item separately in terms of the respective passage and choose your answer as per the following guidelines :
(1) If the item is a MAJOR OBJECTIVE in making the decision; that is, the outcome or result sought by the decision maker.
(2) If the items is a MAJOR FACTOR in arriving at the decision; that is consideration explicitly mentioned in the passage that is basic in determining the decision.
(3) If the item is a MINOR FACTOR in making the decision; a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a MAJOR ASSUMPTION made deliberately; that is supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an UNIMPORTANT ISSUE in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.
PASSAGE-I
For the past two years, Bennett Joseph, head of the regional firm R and S Packing Company, had been seriously considering the use of U.S. Government grade labeling for its high-quality canned fruits and vegetables. having enjoyed an excellent reputation with the public under the trademark “Delidh” for more than 30 years, these canned goods were known throughout the area by distributors and consumers alike as among the best.
The grade-labeling problems had come to the force as the result of a new food supermarket chain called Gaynes. The new chain, a national organization, was making a depth penetration in the region by spending a sizeable portion of its large advertising and promotion budget for pushing its own private brands of frozen and canned fruits and vegetables. Its advertising emphasized that the public could find both grade and descriptive labeling on each package and can. The descriptive labels listed the type of food, the can size, the number of servings per can, the net contents, and the name and address of the chain.
Joseph had always paid careful attention to the descriptive labeling on R and S products but had been most reluctant to commit the company to the u se of grade labeling. Joseph’s reluctance was supported by the company’s advertising and promotion manager and the production boss, who believed with him that grade labeling could hardly bring out the fresh flavor and taste upon which the company prided itself and had been able to capture through its own special heating, processing and canning techniques.
A factor that seriously concerned Joseph in the use of grade labels on canned fruits and vegetables was the possible use of a high grade on one of the grading characteristics to offset a low score on another. This method could hardly help R and S, whose pack was known by distributors and consumers alike to be much better even than the highest grades of its competitions.
While Joseph was pondering over this problem he mulled over what he had read about grade labeling. In the first place, grading and labeling of canned foods had been developed to protect and help the consumer. Though the Department of Agriculture, federal standards h ad been set up for standardization, grading and inspection work, to encourage voluntary use of these standards, the Department of Agriculture hired inspectors who carried out the federal inspection program at production periods. For inspection program at production periods. For canned fruits and vegetables, the grades were A, B and C, which were based on such criteria as uniformity, succulence and colour not flavour or food value.
Joseph certainly agreed that grade labeling could provide additional information for the consumer. R and S could also use it in company advertisements to supplement its own descriptive labels. But didn’t everyone know about the taste and quality of R and S products? He also wondered what happened when a company using grade labeling saw the qualities of fruits and vegetables change from year to year. At one period, that quality might by high for most growers; it might also be low during another, Also, some factors that were very important in their effect on consumer choice could not be subjected to a grading discipline. For example, the range of individual tastes was impossible to standardize. Certainly taste, Joseph felt, should be at least as important as the other, more tangible criteria used to grade canned goods.
Joseph’s legal advisor pointed out that there was another aspect to the problem of grade labeling. He had been informed by colleagues employed at the Department of Commerce that while p resent use of standards was voluntary, such use might become mandatory in the not-too-distant future. His contacts explained that their information was based not on present government plans, but on possible Congressional legislation. The scenario went like this, Several consumer organizations were active in promoting ‘truth in labeling’ legislation. Their objective was the provision of more information on packaging so that consumer could make better decisions on what products to buy. Simply put, it was argued that consumers could not distinguish between competing products on the basis of present labeling requirements. Present labels contained only the manufacturer’s name and address, the fact that the contents conformed to Federal Drug and Agriculture food standards, and net weight. NO mandatory criteria existed for grade standards. Consumers could judge quality only on the basis of trail-and-error, by trying the product or by reading the advertised claims of competing brands. Government officials believed that if several of the larger consumer organizations combined efforts to lobby in Congress for passage of consumer legislation, there was an even chance that a “truth in labeling” law could be passed within a year.
Joseph weighted the finding of his legal advisor, He realized that, while taste was the ultimate criterion for choosing one brand over another, the initial choice of particular brand, could be influenced by product grade. Moreover, since R and S products were of the highest quality, they would undoubtedly carry the highest possible federal grades. Joseph was most concerned about the timing of a decision to accept product grading, which was at the present time still voluntary. Would it be to R and S’s advantage to adopt a voluntary labeling program, or would it be better to wait until grading became mandatory for all processors? What advantages and disadvantages would result from taking a wait-and-see attitude, rather than immediately commencing a voluntary grading program?
Before Joseph completed his study of the problem, one of his leading competitors, Team, Foods, commenced a voluntary label standardization, program. Joseph was worried about the possibility that some of Team Food’s products might be designated grade A quality. Team Foods could quickly exploit this advantage at the expense of R and S. Thus, grading had now become a competitive issue. Joseph felt that he had to make a quick decision one way or the other.
1. Establishment of a new supermarket chain.
2. Federal food standards established by the Department of Agriculture
3. Maintaining the R and S brand image.
4. Likelihood that grade labeling would become mandatory.
5. Influence of consumer groups on government actions.
6. The 30 years of experience behind R and S packing company
7. Superior quality and taste of R and S product
8. Adoption of grade labeling by Gaynes.
9. The use of grades. A, B and C for canned fruit.
10. Grade labeling used in advertising.
PASSAGE II
Sam Hoe’s small furniture factory was doing more business than ever before and had a solid backlog of orders that ensured continuous production. Its profits, however, had not kept pace with production. Rising machinery, lumber and hardware costs, higher wages and higher operating expenses all combined to eat into profits. Mr. Hoe was concerned about this situation and had thought about raising prices of his products. This was not practical at the present, however, because the prices of most items had been increased within the last six months. Among various alternatives, he had considered opening an outlet to retail his own products.
The Hoe company had been established when Sam’s father had started a small wood-working shop in his garage twenty years before. When Sam had come in to the business about five years later, the shop had been moved to a warehouse on the outskirts of town. At that time, much of the space was used for storage of materials and finished goods. Through the next ten years more and more of the storage of materials and finished goods. Through the next ten years more and more of the storage area had been taken over for equipment and the work space; therefore an additional storage building had been constructed next to the original building. The payroll had grown to twenty craftsmen, who were supervised by a production manager. Mr. Hoe and one bookkeeper did the purchasing, accounting, and sales work.
The shop, located in a city of 25,000 people, had begun on a special-order custom basis, selling mainly to local residents. Through the years a standard line of tables and chairs h ad been developed, which now accounted for 78 percent of sales. Most of the standard line furniture was sold through four wholesalers to retails furniture stores in a five-state area. Two outlets in the city, a department store and a large furniture showroom were bought directly from the factory. Although most orders for custom-made items came from within the state, a few came from states from all areas of the country.
In examining his sales and profit records for the past two years, Mr. Hoe found that while sales had increased steadily, profits showd only a very slight increase over the profits showed only a very slight increase over the preceding year. Further study showed that while the sale of custom-made merchandise netted a consistently good profit, standard items, sold on a slimmer margin, lost money in some cases. Rising materials costs and more rigid specifications, and demands from large retail purchasers had both contributed to the problem. Unfortunately, the number of orders for custom work had to be limited, for top craftsmen were in short supply and much of this work demanded highly skilled cabinet makers.
Mr. Hoe believed that profits could be improved if the volume of standard furniture could be increased. Discussing the situation with his production manager, Mr. Hoe commented, “Lem, what would you think about opening a retail showroom here? The way I see it, our standard items are popular and almost sell themselves. There’s plenty of room since we added the new building and fixing up a nice-looking showroom shouldn’t be too difficult or expensive. If we cut out the retailer’s margin and split it between the customer and ourselves, we can cut prices – or hold them steady, any way-and still make a decent profit. “The retail showroom, Hoe explained, would not replace existing distribution channels, but rather complement them. The showroom could be located in the factory, thereby saving delivery and rental costs.
Another idea that Hoe raised was the possibility of increasing the number of retail stores that carried the Hoe Company’s line. It was not suggested that furniture sales be extended geographically beyond the five states now served, but rather a more intensive effort would be made to increase the number of retail out lets in these states. According to He, this could be accomplished by adding more wholesalers, especially in the larger states.
Hoe’s marketing manager, Norbert Ravis, agreed that the number of retail outlets should be increased by more intensive coverage of wholesalers or by adding additional wholesalers to the network. Norbert suggested that the company should find a way to increases sales through moderate-sized retailers, rather than expand sales to department stores and large distributors. Norbert explained that although large retailers could order in bulk, the profit margin was lower. What was needed, according to Norbert, was a balance of sales between large and small retailers, with about three-fourths of total sales allocated to the smaller or moderate-sized retailer. To support his argument, Norbert supplied the following statistics: a standard set of a table and four chairs sold to a large department store earned 25 percent profit to the factory. The same set sold to a small or moderate-sized retailer earned a 40 percent profit. Therefore, as far as Norbert was concerned, sales should be increased to smaller retainers only.
Sam Kander, Hoe’s production manager, was worrie about the production capabilities of the factory. With the output reaching capacity, how could the marketing people plan for increased sales without taking into consideration the capacity of the plant? Even if an additional shift was added, the factory could only increase output by another 40 percent with existing machinery. Kander felt that the best way to increase sales would be to expand the custom-made merchandise. A special effort should be made to hire more cabinet makers. Hoe could make a survey of the various vocational schools in the area to find young men who would work as apprentices in the factory. Demand was increasing for the sort of custom work that Hoe supplied. Moreover, custom work was the most profitable for the company.
Hoe weighed all the alternatives. He came to the conclusion that increasing sales without improving profitability would be a waste of resources. He could have to determine which alternative would allow his company to grow, while at the same time contributing to profit improvement.
11. Increased production costs incurred by Hoe’s company
12. Increase demand for Hoe’s furniture
13. Employment of 20 craftsmen in Hoe’s factory
14. Availability of skilled cabinetmakers
15. Improving profitability of Hoe’s company
16. Number of states in which Hoe’s furniture is sold
17. Ease of selling Hoe’s standard furniture in an attached showroom
18. Direct sales of large retailers
19. Rising hardware costs
20. More intensive coverage of wholesalers.
PART-II
Directions: Each passage in this section is followed by questions based on its contents. Read the passage carefully and then answer the questions given below them by choosing the best answer to each question. Answer the questions on the basis of what is stated or implied in the passages.
PASSAGE-I
Environmental protection and management is deservedly attracting a lot of attention these days. This is a desirable development in the face of the alarming rate of natural resource degradation which greatly hampers their optional utilization. When waste waters emanating from municipal sewage, industrial effluent, agricultural and hand runoffs. Find their way either to ground water reservoirs or other surface water sources, the quality of water deteriorates, rendering it unfit for use. The natural balance is disturbed when concentrated discharges of waste water is not controlled. This is because the cleansing forces of nature cannot do their job in proportion to the production of filthy matter.
According to the National Environment Engineering and Research Institute (NEERI), a staggering 70 percent of water available in the country is polluted. According to the Planning Commission: “From the Dal lake in the North to the Periyar and Chaliyar rivers in the South, from Damodar and Hoogly in the East to the Thane creek in the west, the picture of water pollution is uniformly gloomy. Even our large perennial rivers, like the Ganga, are today heavily polluted.
According to one study, all the 14 major rivers of India are highly polluted. Besides the Ganga, these rivers include the Yamuna, Narmada, Godavari, Krishna and Cauvery. These rivers carry 85 percent of the surface runoff and their drainage basins over 73 percent of the country. The pollution of the much revered Ganga is due in particular to municipal sewage that accounts for 3/4th of its pollution load. Despite India having legislation on water pollution (the water (Prevention and Control of Pollution) Act, 1974) and various water pollution control boards, rivers have today become synonymous with drains and sewers.
Untreated community wastes discharged into water courses from h uman settlements account for four times as much waste water as industrial effluent. Out of India’s 3,119 towns and cities, only 217 have partial (209) or full (8) sewerage treatment facilities and cover less than a third of the urban population. Statistics from a report of the Central Board for Prevention and Control of Water Pollution reveal that 1,700 of 2,700 water u sing industries in India, are polluting the water around their factories. Only 160 industries have waste water treatment plants. One estimate suggests that the volume of waste water of industrial origin will be comparable to that of domestic sewage in India by 2000 A.D. Discharges from agricultural fields which carry fertilizing ingredients of nitrogen, phosphorous and pesticides are expected to be three times as much as domestic sewage. By that data, thermal pollution generated by discharges sewage. By that date, thermal pollution generated by discharges from thermal power plants will be the largest in volume.
Toxic effluents deplete the levels of oxygen in the rivers, endanger all aquatic life and render water absolutely unfit for human consumption, apart from affecting industrial production. Sometimes these effects have been disastrous. A recent study reveals that the water of the Ganga, Yamuna, kali and Hindon rivers have considerable concentrations of heavy metals due to inflow of industrial wastes. Which pose a serious health hazard to the millions living on their banks. Similarly, the Cauvery and Kapila rivers in Karnataka have been found to contain metal pollution which threaten the health of people in riverine towns. The Periyar, the largest river of Kerala, receives extremely toxic effluent that result in high incidence of skin problems and fish killing. The Godvari of Andhra Pradesh and the Damodar and Hoogly in West Bengal receive untreated industrial toxic wastes. A high level of pollution had been found in the Yamuna, while the Chambal of Rajasthan is considered the most polluted river in Rajasthan. Even in industrially backward Orissa, the Rushikula river is extremely polluted. The fate of the Krishna in Andhra Pradesh, the Tungabhadra in Karnataka the Chaliyar in Kerala, the Gomiti in U.P. the Narmada in M.P and the Sone and the Subamarekha rivers in Bihar is no different.
According to the W.H.O. eighty percent of diseases prevalent in India are water-borne, many of them assume epidemic proportions. The prevalence of these diseases heighten under conditions of drought. It is also estimated that India loses as many as 73 million mandays every year due to water borne diseases, costing Rs. 600 crores by way of treatment expenditure and production losses. Management of water resources with respect to their quality also assumes greater importance especially when the country can no more afford to waste water.
The recent Clean-the Ganga project with an action plan estimated to cost the exchequer Rs. 250 crores (which has been accorded top priority) is a trend setter in achieving this goal. The action plan evoked such great interest that offers of assistances have been received from France, U.K, U.S and the Netherlands as also the World Bank. This is indeed laudable. Poland too h as now joined this list. The very fact that these countries have volunteered themselves to contribute their mite is a healthy reflection of global concern over growing environmental degradation and the readiness of the international community to participate in what is a truly formidable task. It may be recalled that the task of cleansing the Ganga along the Rishikesh-Haridwar stretch under the first phase of the Ganga Action Plan has been completed and the results are reported to be encouraging.
The crisis of drinking water is deepening because water resources are drying up and the lowering of ground water through over pumping. These factors increase the magnitude of the problem. An assessment of the progress achieved by the end of March 1985, on completion of the first phase of the International Drinking Water supply and Sanitation Decade (1981-91), revealed that drinking water has been made available to 73 percent of the urban population and 56percent of the rural population only. This meant that nearly half the country’s rural population has to get drinking water facilities. The foremost action in this would be to clean up our water resources.
As per surveys conducted by the NEERI, per capita drinking water losses in different cities in the country range between 11,000 to 31,000 litres annually. This indicates waste level of 20-35 per cent of the total flow of water in the distribution system primarily due to leaks in mains and household service pipes. Preventive maintenance programme would substantially reduce losses/wastages and would certainly go a long way in solving the problem.
21. The degradation of natural resources will necessarily lead to
(1) poor economic utilization of resources
(2) contamination of water from municipal sewage
(3) water unfit for human consumption
(4) heightened drought conditions
(5) none of the above
22. According to NEERI
(1) the extent of water pollution in the Dal Lake is grim
(2) seventy percent of total water available in the country is polluted
(3) only 217 out of 3119 towns and cities have sewage treatment facilities
(4) all the 14 major rivers of India are highly polluted
(5) 1700 to 2700 water u sing industries are polluting the water around the industries
23. Municipal sewage pollutants account for
(1) the lowest percentage of water pollution
(2) seventy five percent of the Ganga’s water pollution load.
(3) twice the volume of the waste water of industrial origin
(4) three times as much as the discharge from agricultural fields
(5) the highest percentage of water pollution
24. Which of the following statements is correct?
(1) The river Periyar is in South India
(2) The river Periyar is the largest river of Kerala
(3) The river Gomiti is also extremely polluted
(4) The river Cauvery has been found to contain metal pollution
(5) All of the above are correct.
25. The cost of the Clean-the Ganga Pollution Project Action Plan is likely to be sourced from
(1) The Indian Exchequer
(2) France, U.K, U.S., and the Netherlands
(3) The World Bank, Poland, U.K.
(4) the Indian Exchequer and the World Bank
(5) The U.S, U.K.. Netherlands, Poland France the World Bank and India
26. Which of the following statements made by the WHO is correct?
(1) Water-borne diseases account for eighty percent of all diseases prevalent in India
(2) water-borne diseases in India create a loss of Rs. 600 crores every year
(3) both 1 and 2 are correct
(4) per capita drinking water losses in different cities in the country range between 11,000 and 31,000 litres annually
(5) none of the above
27. Considerable amounts of metal pollutants are found in the river(s)
(1) Chambal of Rajasthan
(2) Rushikula in Orissa
(3) Damodr, Hoogly, Krishna and Gomiti
(4) Ganga, Yamu na, Kali, Hindon, Cauvery and Kapila
(5) Cauvery and Kapila rivers in Karnataka
28. The crisis of drinking water is caused chiefly by
(1) the green house effect
(2) water pollution caused by industrial development
(3) drying of water sources and over pumping
(4) increasing urbanisation
(5) population explosion
29. The best remedy for water shortage lies in
(1) putting up more pumps in rural areas
(2) cleaning up polluted water
(3) reducing the waste level of 25-30 percent of the total flow of water
(4) constructing large sized dams
(5) government policies towards pollution control
30. An assessment of progress by March 1985 on completion of the first phase of the International Drinking Water Supply and Sanitation revealed.
(1) drinking water was made available to 73% urban and 56% rural population
(2) water losses through water distribution was 20-35%
(3) preventive maintenance has to be geared up for drinking water distribution losses
(4) rivers have to be cleaned up
(5) environmental degradation is the major concern of the country for the next decade
PASSAGE-II
Consumers, on the whole, are not an easy group to figure out. Their mood sobers with each mounting step of inflation, but at the same time consumer spending continues to increase – a sign of recovery and a paradox. Retail sales are up, and national savings have gone down by half a percentage point. Consumers’ taste runs toward the luxurious, while they complain about the high cost of living. Top-of-the-line cars are selling better than ever. A large, well-known Honda dealer says sales of the Rs. 10 lakh Honda City have doubled in the past year.
Consumer watchers seem to have a hint of what is going on, and they are not at all reassured by their findings. A pattern in s developing here that for a long time has been prominent in Europe-instead of paying more later, consumers are preferring to buy now as a hedge against the future. In the past, inflation has generally led to a cutback in consumer spending, giving them a chance to refortify the real value of their liquid assets. Now, however, they are put ting their money into hard assets- houses, cars, bonds, or simply cash. Art, precious jewellery, and the like are being grabbed up, but with borrowed funds obtained, not from loans, but from second mortgages and margin accounts at brokerage houses. The use of these nontraditional sources if not so surprising when one realizes that the interest rate is lower than on consumer loans, enabling the borrower to pay the loan back in cheaper rupees during inflation.
There are numerous surveys that measure and chart consumer trends and sentiment. Because their methods, and hence the questions they ask, are different, the results are not always quite the same. Whereas one group notes a dramatic drop in buying plans, another indicates a positive attitude toward buying now. The general feeling of all the groups is that there has been an all-around drop in confidence, prompted by the inflation speedup. If consumers are feeling more cautious, they have not yet demonstrated this feeling in the marketplace. Buy now seems to be the prevalent attitude. This is evident in car sales, and the automobile manufacturers are baiting the buyers with small, sporadic increases of 1 percent or so instead of hitting them all at once with huge price hikes for last fall’s new models. The upper end of the department store market is doing well. The rich are investing their rupees in quality merchandise, realizing that a Rs. 30,000 coat today will most likely cost Rs. 40,000 next year. The emphasis is on quality, not quantity. A woman will get more use out of one good handbag than two less expensive ones. Men are apt to buy one high-priced suit, with the intention of wearing if for a couple of extra occasions, instead of having several suits of poorer quality. Wearing apparel is being looked at as an investment.
If the quality, higher-priced end of the retail trade can paint a relatively rosy picture, the same does not hold true for the “low end” of the business. Discount store sales are down from year ago. There is no hedge against inflation in this end of the retail market.
Although some retailers at this less cheery end of the business are trying to cash in on the better-quality trend by changing their image, most are fearful that the rush now will result in drastic cutbacks later on. The growth of debt, relative to income, has been rapid, and there will have to be a slowdown somewhere along the line.
The burden of debt on the individual household is a matter of concern and constant study for economists. To measure this burden, they look at the ratio of repayment on installment debt to after-tax9disposable) income. The ratio at present is 15 percent, which is no cause for alarm, since the norm ranges somewhere between 14 percent and 16 percent. Consumer debt patterns have changed somewhat, however, and this may indicate a difference in the way in which a family judges its credit burdens. Not included in this ratio are loans that have been stretched out to ease the monthly burden- car loans that mature in four years as opposed to the two- or three-year loans of the past. And as interest rates continually creep upward, consumer credit will be tightened. Debt has allowed the consumer to cruise along in a recovery manner, but the squeeze is on.
Consumer credit seems to be only part of the problem, according to Data Info, a New England organization specializing in econometric forecasting. Data Info feels that discretionary income- what is left over after taxes for buying household necessities such as food- is the real source of concern. One expert at this New England shop says that when the tremendous employment gains of recent years begin to diminish, there will be a slowdown in the rise of real income. People will be pushed into higher tax brackets, even if the bread winner’s income keeps up with rising prices.
To illustrate the decline in discretionary income, we can use the following data: Between 2002 and 2007, cash income per household increased 42.2 percent (in today’s rupees). During, that same time period inflation went up 40.7 percent. It seems that the household is just a jump ahead of inflation, but such is not the case, because, also in that time period, there was a 65.3 percent increase in the average tax bill, and the cost of necessary items in the consumer market basket rose 43.8 percent. So, in the end, the amount left for extras, or the discretionary income, went up only 30.7 percent, hardly enough to keep pace with inflation.
What with inflation both giving impetus to the buy-now attitude and gnawing away at discretionary income, and with consumer credit rapidly approaching its limits, we may be in for a shift in the economy. Producers are building up their inventories in anticipation of increased consumer spending, but the consumer is, at the same time, keeping a watchful eye on inflation while stocking up. Sooner or later the consumer will have to cut down on spending, and retailers and producers will be left holding inventories.
But for the time being, consumers continue to buy ahead and thus fatten the retail purse. Producers are watching their inventories closely, and, according to industry observers, the trend of buying in advance has a long way to go before we reach the boom-and-bust crisis.
31. The passage is primarily concerned with
(1) consumers buying luxury items
(2) consumer’s concern over inflation
(3) the tightening of consumer credit
(4) consumer spending now as a hedge against the future
(5) consumers buying quality clothing as an investment
32. Which of the following is (are) true about consumer survey organization?
I. they accurately measure consumer behaviour and sentiment.
II. they are controlled by the government
III. they use different methods but attain the same results
IV. they ask different questions of consumers
V. only consumer attitudes toward spending are measured.
(1) II, III and IV only
(2) I, IV and V only
(3) IV only
(4) III only
(5) II and IV only
33. According to the passage, which statement best describes consumer attitudes at present?
(1) consumers are cautious but are continuing to buy
(2) consumers are buying more expensive high-quality goods
(3) consumers think expensive clothes are a good investment
(4) consumers feel the company is going through a recovery period
(5) consumers feel it is safer to build up a lot of debt now instead of later.
34. Over a period of time, if the same trend continue in future
(1) consumer credit period will be shortened
(2) people will be pushed into higher tax brackets, even if the income keeps increasing with rising price
(3) drastic cut in income
(4) lowering the quality of goods
(5) proliferation of finance companies
35. According to the passage, which of the following is true about consumer loans?
I. they are a traditional source of money
II. the interest rate if higher than on other sources of borrowing
III. they are the easiest way to borrow money
IV. they will cost he consumer more in the long run
(1) I and II only
(2) I, II and III only
(3) I, II and IV only
(4) II and IV only
(5) All of the above
36. Disposable income can be defined as
(1) income the consume does not care how he or she spends
(2) income spent on luxuries
(3) after-tax-income
(4) income spent on nondurable goods
(5) none of the above
37. The passage implies which of the following about consumer debt?
I. debt patterns are changing
II. debt payments are being stretched out to give the consumer extra money
III. consumers are fearful of getting deeper in debt
IV. debt burden is measured b looking at the number of installments relative to disposable income
(1) I, II and III only
(2) I and II only
(3) I, II and IV only
(4) I and IV only
(5) all of the above
38. The author defines discretionary income as
(1) after-tax income
(2) income spent on food
(3) income left after taxes for buying household necessities
(4) money spend as the consumer wishes to do so
(5) invested income
39. Discretionary income, on the average, is what part of total income?
(1) 15-16 percent
(2) 30-7 percent
(3) 40-7 percent
(4) half of after-tax income
(5) cannot be determined from the information provided in the passage
40. According to the passage, which of the following can b e said about the author’s feeling toward consumer spending?
(1) consumers will cut down sharply on spending
(2) heavy consumer spending has caused producers to build up their inventories unwisely
(3) the current spending trend will continue for some before reaching crisis proportions
(4) current spending will cause a sudden, sharp shift in the economy
(5) all of the above
PART-III
41. The value of 
is
(1) 107
(2) 105
(3) 103
(4) 109
(5) none of the above
42. What is the largest number which when divides 2274, 2061 and 1054 leaves remainder 6, 3, and 4 respectively.
(1) 6
(2) 14
(3) 42
(4) 60
(5) 21
43. A man spends 75% of his income and saves the remaining. His income increases by 20% and expenditure by 10%. The increase in savings is
(1) 35%
(2) 371/2%
(3) 50%
(4) 60%
(5) 40%
44. 1500 was partly lent at 5% SI and the remaining at 8% SI p.a. so that the interest received from both the parts was Rs. 90 in a year. Then the amount lent at 5% will be
(1) Rs. 500
(2) Rs. 750
(3) Rs. 1000
(4) Rs. 1,250
(5) Rs. 1,500
45. Divide Rs. 760 among 4 men, 2 women, and 5 children so that each man may have double the share of a woman and each woman may have three times the share of a child. The share of 1 child is
(1) Rs. 50
(2) Rs. 20
(3) Rs. 120
(4) Rs. 60
(5) Rs. 70
46. A dishonest, shopkeeper deceives by 25% at the time of purchase and 20% at the time of sale of articles. The percentage of his profit is
(1) 50
(2) 40
(3) 45
(4) 5
(5) 30
47. A wire in the shape of an equilateral triangle enclosed an area of S sq cm. If the same wire is bent to form a circle, the area of the circle will be
(1) 
(2) 
(3) 
(4) 
(5) 
48. If A is a point outside the circle with centre O, AT and AT’ are the tangents to the circle and P is a point on the circle as shown in the figure. The ∠TPT’ equals
(1) 55°
(2) 70°
(3) 125°
(4) 140°
(5) 130°
49. Two circles touch each other internally. Their radii are 2 cm and 3 cm. The biggest chord of the outer circle which is outside the inner circle is of length
(1) 2√2 cm
(2) 3√2 cm
(3) 2√3 cm
(4) 4√2 cm
(5) 4√3 cm
50. At a meeting, five friends decide to buy a plaque for the club that will cost D rupees. One person decides not to participate in the plan. The increase in amount to each of the four remaining people is
(1) 
(2) 
(3) 2D
(4) 
(5) 
51. Six years ago in a state park the deer outnumbered the foxes by 80. Since then, the number of deer has doubled and the number of foxes has increased by 20. If there are now a total of 240 deer and foxes in the park, how many foxes were there six years ago?
(1) 10
(2) 20
(3) 30
(4) 40
(5) 100
52. A father can do a certain job in x hours. His son takes twice as long to do the job. Working together, they can do the job in 6 hours. How many hours does it take the father to do the job?>
(1) 9
(2) 18
(3) 12
(4) 20
(5) 16
53. If two fractions, each of which has a value between 0 and 1, are multiplied together the product will be
(1) always greater than either of the original fractions
(2) always less than either of the original fractions
(3) sometimes greater and sometimes less than either of the original fractions
(4) remains the same
(5) never less than either of the original fractions
54. A train travels at an average speed of 20 mph through urban areas, and 75 mph through rural areas. If a trip consists of travelling half an hour through urban areas, 31/2 hours through suburban areas, and 3 hours through rural areas, then the train’s average speed for the entire trip is
(1) 50 mph
(2) 
(3) 
(4) 
(5) 
55. If x is less than 2, which of the following statements are always true?
I. x is negative
II. x is positive
III. 2x is greater than or equal to x
IV. x2 is greater than or equal to x
(1) III only
(2) IV only
(3) I and III only
(4) I, III and IV only
(5) None of the above
56. An angle of x degrees has the property that its complement is equal to 1/6 of its supplement where x is
(1) 30
(2) 45
(3) 60
(4) 63
(5) 72
57. Which of the following figures has the largest area?
I. A circle of radius √2
II. An equilateral triangle whose sides each have length 4
III. A triangle whose sides have lengths 3, 4 and 5
(1) I
(2) II
(3) III
(4) I and II
(5) II and III
58. If the shaded region (triangle EDE) has area equal to 1/3 of the area of the rectangle ABCD, then the area of the rectangle ABCD is
(1) (1/2)y2
(2) 2xy
(3) 3x2
(4) 4x2
(5) 6x2
59. The rectangle ABCD, EFGH and DEIJ are all congruent, Express the length of the line segment GD in terms of x where x is the length of the line segment JI and the area of ABCD is 3x2.
(1) 2x
(2) (2√2)x
(3) (√5)x
(4) 3x
(5) 5x
60. If hose A can fill up a tank in 20 minutes and hose B can fill up the same tank in 15 minutes, how long will it take for the hoses together to fill up the tank?
(1) 5 minutes
(2) 
(3) 
(4) 
(5) 12 minutes
PART-IV
Directions: Each of the following problems has a question and two statements which are labeled (1) and (2) in which certain data are given. You have to decide whether the data given in the statements are sufficient for answering the question. Using the data given in the problem plus your knowledge of mathematics and every day facts, choose:
1. If you can get the answer from (1) ALONE but not from (2) alone
2. If you can get the answer from (2) ALONE but not from (1) alone
3. If you can get the answer from BOTH () and (2) TOGETHER, but not from (1) alone (or) (2) alone
4. If EITHER statement (1) ALONE or statement (2) ALONE suffices
5. If you CANNOT get the answer from statements (1) and (2) TOGETHER, but need even more data
61. Is x > 0
(1) x2 > 0
(2) x3 > 0
62. In n the square of an integer k?
(1) n = 4j2 with j an integer
(2) n2 =A2 + B2 with A, B integers
63. Will the circle with centre 0 fit inside the square ABCD?
(1) The diameter of the circle is less than a side of the square
(2) The area of the circle is less than the area of the square
64. Is x greater than y?
(1) xy = 5
(2) 
65. Is k an odd integer?
(1) k is divisible by 3
(2) The square root of k is an integer divisible by 3
66. In triangle ABC, find z if AB = 5 and y = 40°.
(1) BC = 5
(2) the bisector of angle B is perpendicular to AC.
67. Is AB perpendicular to CD?
(1) AC = BD
(2) x = y
68. k is a positive integer. Is k a prime number?
(1) No integer between 2 and √k inclusive divides k evenly
(2) No integer between 2 and k/2 inclusive divides k evenly and k is greater than 5.
69. If x = 50°, find the value of x.
(1) RS # ST
(2) x + y = 60
70. How much was a certain painting worth in January 2001?
(1) In January 2007 the painting was worth Rs. 20,00,000
(2) Over the ten years 1998-2007 the painting increased in value by 10% each year
71. Train Y leaves Chennai at 1 a.m. and travels at constant speed of y m.p.h. Train Z leaves Chennai at 2 a.m. and travels east at a constant speed of 2 m.p.h. Which train will travel farther by 4 a.m.?
(1) y > z
(2) y = 1.2z
72.There are 450 boxes to loan on a truck. A and E work independently and take 30 minutes to load the truck. How long should B take to load the truck?
(1) A loads twice as many boxes as B
(2) A would take 45 minutes by himself
73. A car drives around a circular track once. A second car drives from point A to point B in a straight line. Which car travels farther?
(1) The car driving around the circular track takes a longer time to complete its trip than the car travelling in a straight line
(2) The straight line from A to B is 
as long as the diameter of the circular track
74. A group of 49 consumers were offered a chance to subscribe to 3 magazines: A, B, and C. 38 of the consumers subscribed to at least one of the magazines. How many of the 49 consumers subscribed to exactly two of the magazines?
(1) Twelve of the 49 consumers subscribed to all three of the magazines
(2) Twenty of the 49 consumers subscribed to magazine A
75. Which of the four members w, x, y and z is the largest?
(1) The average of w, x, y and z is 25
(2) The numbers w, x, and y are each less than 24
76. ABC is a triangle inscribed in circle AOCB. Is AC a diameter of the circle AOCB?
(1) Angle ABC is a right angle
(2) The length of AB is 3/4 the length of BC
77. What is the radius of the circle with centre O?
(1) The area of the circle is 25π
(2) The area of the circle divided by the diameter of the circle is equal to 25π times 1/2 of the radius of the circle
78. Area ∠1 and ∠2 supplementary?
(1) ∠1 and ∠2 are alternate interior angles of the parallel lines AB and CD
(2) ∠1 = ∠2
79. How wide is the river?
(1) While swimming across the river, the swimmer was swept 150m downstream
(2) The swimmer swam a total of 400 m, swimming in a straight line until reaching the other side of the river
80. How many kilowatt-hours of electricity would an assembly of 2000, 1-watt photovoltaic cells generate in a year?
(1) On the average, there were 8 hours of sunlight per day
(2) On an average, the assembly generated 16 kilowatt-hours of electricity
PART-V
Directions: In each of the following sentences four words or phrases have been underlined. Only one underlined part in each sentence is not acceptable in standard English. Pick up that part- (1) or (2) or (3) or (4). If there is no mistake mark (5).
81. If I would have worked regularly
(1) (2)
I would have passed the examination
(3) (4)
No error.
(5)
82. The teacher asked the student
(1) (2)
if everyone of them were ready to attend
(3)
practical class every day. No error.
(4) (5)
83. The daughter parted with her mother
(1) (2)
84. People who are not belonging to
(1) (2)
any party are called independent. No error.
(3) (4) (5)
85. Had I known you were coming I
(1) (2) (3)
would stay at home. No error
(4) (5)
86. The company not only manufactures
(1)
leather good but also plastic ware. No error
(2) (3) (4) (5)
87. I must find out some means of balancing
(1) (2) (3)
my budget. No error
(4) (5)
88. Before you enter the temple you should
(1) (2) (3)
take out your shoes. No error
(4) (5)
89. No boy in h is son’s class is as bright
(1) (2) (3)
as his son. No error
(4) (5)
90. The heir of the throne was free from
(1) (2)
physical and moral taint. No error
(3) (4) (5)
91. They used to laugh whenever their teacher
(1) (2) (3)
spoke. No error
(4) (5)
92. I cannot explain why does she not study
(1) (2)
93. It would be interesting knowing
(1) (2) (3)
94. If the tourist would have come here
(1) (2)
I would certainly have taken them around. No error
(3) (4) (5)
95. As soon as the peon rings the first bell
(1)
all the student assemble on the playground.
(2) (3) (4)
No error
(5)
96. I would have asked you for dinner.
(1)
if I had known that you are staying here to
(2) (3)
night. No error
(4) (5)
97. If this man would not have been poor
(1) (2)
he would not have worked so hard.
(3) (4)
No error
(5)
98. He visited the battlefield where Napoleon
(1) (2)
was defeated in his holidays. No error
(3) (4) (5)
99. He always practises the justice
(1) (2) (3)
and cares for moral principles. No error
(4) (5)
100. Most of the critics, all over the world
(1)
agree that this is one of the most
(2)
interesting novels that has recently appeared.
(3) (4)
No error
(5)
Latest Govt Job & Exam Updates: