UGC NET Exam December 2014 Tourism Administration and Management Paper-3 Question Paper With Answer Key


Paper – III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All questions are compulsory.

1. Setting a high price when the market is price – insensitive is referred as

(A) Prestige-pricing

(B) Market-skimming pricing

(C) Market-penetration pricing

(D) Discriminatory pricing

Answer: (A)

2. Name the type of the tour where an organiser accompanies the group for arrangements :

(A) Executive Tour

(B) Entertainer Tour

(C) Escorted Tour

(D) Extra-costed Tour

Answer: (B)

3. When integration occurs between companies offering complementary rather than competitive products, it is known as

(A) Horizontal integration

(B) Backward integration

(C) Forward integration

(D) Concentric diversification

Answer: (B)

4. Assertion (A) : International tourists arrivals grew by 5% worldwide in 2013 reaching 1087 million arrivals.

Reason (R) : China has consolidated its position as number one source market in the world.

Codes :

(A) Both (A) and (R) are true and (R) is the correct explanation.

(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Answer: (A)

5. When buyers are divided into groups on their knowledge, attitude and use on response to a product, it is known as

(A) Behavioural market segmentation

(B) Psychographic market segmentation

(C) Geographic market segmentation

(D) Demographic market segmentation

Answer: (A)

6. Which of the following drives is not a part of McClelland’s theory of motivation ?

(A) Need for Enrichment

(B) Need for Achievement

(C) Need for Power

(D) Need for Affiliation

Answer: (D)

7. Service providers communicating their level of service through their pricing is termed as

(A) Market Segmentation

(B) Market Targeting

(C) Market Tracking

(D) Market Positioning

Answer: (A)

8. Assertion (A) : Applied research is usually constrained by set time schedules.

Reason (R) : Applied research addresses some particular problems or attempts to achieve a particular set of outcomes.

Codes :

(A) Both (A) and (R) are true and (R) is the correct explanation.

(B) Both (A) and (R) are true, but (R) is not the correct explanation.

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Answer: (A)

9. The flagship of ITDC hotels is

(A) the Brahmputra Ashok

(B) the Kalinga Ashok

(C) the Ashok, Delhi

(D) the Pataliputra Ashok

Answer: (A)

10. What is the difference between a bar chart and a histogram ?

(A) A histogram does not show the entire range of scores in a distribution.

(B) Bar chart is circular where as histogram is square.

(C) There are no gaps between the bars on a histogram.

(D) Bar charts represent numbers, where as histograms represent percentage.

Answer: (B)

11. In the new product development, write down the commercial steps that would be followed in order :

I. Test Marketing

II. Business analysis

III. Generation of new product ideas

IV. Screening and evaluation of Ideas

Codes :

(A) II, I, III, IV

(B) III, IV, I, II

(C) I, II, III, IV

(D) III, IV, II, I

Answer: (D)

12. Suez Canal links the following two Seas :

(A) Atlantic Ocean and Mediterranean Sea

(B) Atlantic and Pacific Oceans

(C) Mediterranean and Red Seas

(D) Pacific and Southern Oceans

Answer: (D)

13. Identify the country to which the High Skilled Migrant Programme (HSMP) VISA is applicable

(A) United Arab Emirates

(B) Australia

(C) United States of America

(D) United Kingdom

Answer: (A)

14. The major achievement of IATA in air-transportation is

(A) one world, one formula and one currency

(B) one phone call, one journey ticket and one currency

(C) one phone call, one organisation and one currency

(D) one world, one regulation and one currency

Answer: (B)

15. Items of List – I and List – II pertain to type of financial ratios and their utility. Candidate has to match an item in one list with the appropriate item in the other list :

Answer: (D)

16. Which of the following statements is false ?

(A) The number of visits to a destination is the best indication of the value of tourism to the destination.

(B) Total tourist nights are a better indication of the impact of tourism on a destination than total tourists arrivals.

(C) Average daily expenditure provides an indication of the quality of tourist traffic to most destination.

(D) Average expenditure per visit is a better indication of the quality of tourist traffic to a destination than average length of stay.

Answer: (D)

17. Rani-ki Vav, one of the finest example of Step Well at Patan, Gujarat was constructed by

(A) Rani Rupmati

(B) Rani Karnavati

(C) Rani Udaimati

(D) Rani Dewal Rani

Answer: (C)

18. Determine the international Sale Indicator for the international journey from LAX-DEL (Los Angeles to Delhi) for which ticket is sold in Chicago and issued in Montreal





Answer: (C)

19. The features of condominium hotels are

(i) Time sharing ownership is similar to condominium.

(ii) Each unit of condominium hotels has multiple owners.

(iii) The condominium management rents units according to the desires of the owners.

(iv) The purchaser does not buy real estate, but the long term right to use it.

The candidate has to find out the correct combination according to the code :

(A) (i), (iii) and (iv) are correct.

(B) (i), (ii) and (iii) are correct.

(C) (ii), (iii) and (iv) are correct.

(D) (ii) and (iii) are correct.

Answer: (A)

20. A tour guide should not be a tour guide if he does not know

(A) History of monuments

(B) Travel route of a visiting place

(C) Names of all the members of a tour group

(D) How much fee he will receive

Answer: (A)

21. Tourism is a complex business that depends on the linkages of various components such as

I. Natural Environment and Resources

II. Tourist Arrivals

III. Per Capita Income of Locals

IV. Support Services

Use the following codes given to choose the correct combination of components :

Codes :

(A) I, II, III and IV

(B) I, III, IV and not II

(C) I, II, IV and not III

(D) II, III, IV and not I


22. The term ‘community tourism’ refers to

(A) tourism within the Asian community

(B) an approach to tourism in which local residents participate in its planning and development

(C) tourist group of a single community

(D) group visits between ‘twinned’ town and cities in different countries

Answer: (A)

23. Total number of guests staying in the hotel at a particular time is known as

(A) House limit

(B) In-house limit

(C) Plus position

(D) House count

Answer: (A)

24. Write down the correct order of top destinations in terms of international tourists arrivals in year 2013. Use the codes given below :

I. France

II. China


IV. Spain

Codes :

(A) I, III, IV, II

(B) I, IV, III, II

(C) III, I, IV, II

(D) II, IV, III, I

Answer: (D)

25. The process of presenting Airline ticket sales and the payment there of for a week by the travel agencies to the Airlines through an authorised Bank is referred as

(A) Actualised Bank Settlement Plan

(B) Airlines Bank Settlement Plan

(C) Authorised Bank Settlement Plan

(D) Area Bank Settlement Plan

Answer: (A)

26. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R) :

Assertion (A) : Explosive types of volcanic eruptions are associated with the destructive or convergent plate boundaries in which the heavier plate is sub-ducted beneath the lighter plate.

Reason (R) : Materials of the upper mantle lying below the mid-oceanic ridges are melted and move upwards in the form of lava during volcanic eruptions, serve as a resource base for Volcano Adventure Tourism.

Read the above statements and select the correct answer from the codes given below :

Codes :

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

(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Answer: (A)

27. The ‘Lufthansa Airlines’ belongs to the country


(B) Russia

(C) Germany

(D) Malaysia

Answer: (C)

28. For getting recognition from Department of Tourism as three star hotel the room size and specification should be :

(A) Double room size 140 sq. ft. and bathroom size 36 sq. ft.

(B) Double room size 140 sq. ft. and bathroom size 30 sq. ft.

(C) Double room size 120 sq. ft. and bathroom size 30 sq. ft.

(D) Double room size 120 sq. ft. and bathroom size 36 sq. ft.

Answer: (A)

29. The Ginger brand economy category hotels belong to

(A) Best Western Group of Hotels

(B) Taj Group of Hotels

(C) ITC Group of Hotels

(D) Oberoi Group of Hotels

Answer: (D)

30. The major shareholder in Public Limited Company Tourism Finance Corporation of India (TFCI) is





Answer: (D)

31. From the following sites which one has been nominated for world heritage site by the World Heritage Committee ?

(A) The Great Himalayan National Park

(B) Nishat Bagh, Kashmir

(C) Indian National Archives, Delhi

(D) Rohtas Fort, Rohtas

Answer: (C)

32. Identify the route of Yamuna Express way.

(A) Hyderabad – Secunderabad

(B) Greater Noida – Agra

(C) Greater Cochin – Alleppy

(D) Bangalore – Mysore

Answer: (A)

33. Maximum threat to the World Tourism is from

(A) Eutrophication

(B) Ozone depletion

(C) Bio-fixation and Bio-diversity loss

(D) Global Warming

Answer: (B)

34. Arrange the following Governmental efforts for tourism development in India in the sequence as they happened for the Nation :

I. “Incredible India” – Campaign

II. Formation of Ministry for Tourism, Govt. of India

III. National Tourism Policy

IV. Budgetary Allocation for Tourism by Govt. of India

Codes :

(A) I, II, III, IV

(B) IV, II, III, I

(C) IV, III, II, I

(D) II, I, III, IV

Answer: (C)

35. The right of an airline, registered in country ‘X’, to operate entirely outside of country ‘X’ in carrying traffic between two other countries is known as

(A) Fourth Freedom

(B) Fifth Freedom

(C) Sixth Freedom

(D) Seventh Freedom

Answer: (B)

36. The full form of IMTEC is

(A) International Medical Tourist, Experts, Technicians, Exhibition and Convention.

(B) Indian Medical Tourists, Experts, Technicians, Exhibition and Convention

(C) International Medical Tourism, Equipments, Technology, Exhibition and Conference

(D) None of the above

Answer: (D)

37. This consists of two lists. List – I has Beaches of India and List – II has their locations in India. Match List – I with List – II. Use the code given below :

Answer: (C)

38. For international airfare calculation Backhaul Check (BHC) is applied :

I. For one way journey

II. For circle trip journey

III. For all Higher Intermediate (FARE) Points (HIP)

IV. From origin to stop over point with higher NUC than origin to destination NUC.

(A) I, II, III and IV are correct.

(B) Only I is correct.

(C) Only II is correct.

(D) I and IV are only correct.

Answer: (B)

39. Two lists of leadership theories and the contributors of these theories are given below. The candidate has to match an item in List – I with an item in List – II :

Answer: (D)

40. Match List – I with List – II :


41. A stable dividend policy means

(A) Constant dividend per share

(B) Regularity in paying dividend

(C) Dividend paid is proportional to earnings

(D) Reasonably unpredictable dividend policy

Answer: (C)

42. Two lists are given below with List – I having the names of cities where metro trains are available and List – II are the years when their operations began. The candidate has to match an item in List – I with an item in List – II :

Answer: (D)

43. Kaiser-Meyer-Olkin (KMO) test is used

(A) in factor analysis to determine whether a set of data is appropriate for factor analysis

(B) for assessing whether two variables appear to be related

(C) to compare means from two populations or samples

(D) to measure the degree of association between two distribution

Answer: (C)

44. The term ‘EVA’ is used for

(A) Extra Value Analysis

(B) Economic Value Added

(C) Expected Volume Arbitrage

(D) Engineering Value Accrued

Answer: (B)

45. Process of Financial Planning ends with

(A) informing the employees that projected figures have come true

(B) preparation of projected statements

(C) preparation of actual statements

(D) comparison of actual with projected

Answer: (D)

46. What is considered to be the optimum approach to national tourism planning and development ?

(A) Formulation of a national development plan with tourism as one of the sectors.

(B) Formulation of a tourism development plan.

(C) Formulation of a tourism marketing plan.

(D) Formulation of tourism strategic plan.

Answer: (A)

47. Assertion (A) : Selling concept of marketing management holds that customers will favour products that are available and highly affordable and therefore management should focus on production and distribution efficiency.

Reason (R) : The marketing concepts hold that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitions.

Codes :

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

(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Answer: (C)

48. What is the correct order of human needs as given in need-hierarchy theory of Abraham Maslow ? Choose the correct order from the following :

(A) Physiological, security, affiliation, esteem, self-actualisation

(B) Security, affiliation, physiological, esteem, self-actualisation

(C) Affiliation, security, esteem, physiological, self-actualisation

(D) Self-actualisation, esteem, security, affiliation, physiological

Answer: (D)

49. Other name for modified American Plan is

(A) CP

(B) Bermuda Plan

(C) Pension Plan

(D) Demi-Pension Plan

Answer: (C)

50. Which of the following approaches to management determines that managerial practice depends upon circumstances/situations ?

(A) Empirical or case approach

(B) Contingency approach

(C) Decision theory approach

(D) Group Behaviour approach

Answer: (A)

51. The Royal Orient is a joint venture of

(A) The Indian Railway and Rajasthan Tourism Development Corporation

(B) The Indian Railway and Tourism Corporation of Maharashtra

(C) The Indian Railway and Tourism Corporation of Gujarat

(D) The Indian Railway and Tourism Corporation of Uttar Pradesh

Answer: (B)

52. The Break-event Chart portrays the relationship between

(A) Price, cost, profit

(B) Cost, volume, profit

(C) Price, sales, profit

(D) Cost, sales, production

Answer: (A)

53. Which of the following is the largest car-rental service company in India ?

(A) ‘Easycab’

(B) ‘Savaari’

(C) ‘Carzonrent’

(D) ‘Fast-track’

Answer: (C)

54. What is the Excess Mileage Surcharge (EMS) for the Air Itinerary Delhi – Mumbai – Bangkok – Kuala Lumpur – Manila with TPMs for Delhi to Mumbai → 708, Mumbai to Bangkok → 1871, Bangkok to Kuala Lumpur → 748 and Kuala Lumpur to Manila → 1542 ? The MPM from Delhi to Manila is 3656.

(A) 5 M

(B) 10 M

(C) 15 M

(D) 20 M

Answer: (B)

55. When looking at consumer income, marketers are most interested in

(A) discretionary income

(B) deferred income

(C) inflationary income

(D) disposable income

Answer: (A)

56. The Type I – error in Testing of hypothesis is

(A) Classifying Ho for sample mean

(B) Analysing Ho over μ-population mean

(C) Rejection of Ho when Ho is true

(D) Acceptance of Ho when Ho is not true

Answer: (D)

57. What is the acronym of “CAQDAS” stand for ?

(A) Computer Assisted Qualitative Data Analysis Software.

(B) Complicated Analytical Questions Deserving Answer Soon.

(C) Constant Aggravation Queried Directly and Swiftly.

(D) Content Analysis Quantification : Durkheim and Statistics

Answer: (B)

58. Match List – I with List – II and select the correct answer from the code given below :

Answer: (A)

59. Affinity Charter comes into play

I. When an organisation decides to offer a trip to its members.

II. Members choose their individual destinations for the trip.

III. Cost-effective ticket prices are given to members.

IV. Organisation enters into a contractual agreement with a charter.

The candidate has to find the correct combination according to the code :

(A) I, II and III are correct.

(B) I and IV are correct.

(C) II and III are correct.

(D) I, III and IV are correct.

Answer: (D)

60. UNWTO Ulysses prize for excellence in the creation and dissemination of knowledge in the year 2013 was awarded to

(A) Prof. T.V. Singh

(B) Prof. Eric Cohen

(C) Prof. Chris Cooper

(D) Prof. Pauline Sheldon

Answer: (B)

61. Purchase of foreign products for the purpose of tourist-satisfaction leads to

(A) Economic leverage

(B) Economic lethargy

(C) Economic leakage

(D) Economic legitimacy

Answer: (C)

62. A type of tourism that may be defined as a form of tourism in which the prime motivation of the tourist involves a desire to experience and interact with exotic peoples is termed as

(A) Ethnic Tourism

(B) Eco Tourism

(C) Space Tourism

(D) Pilgrimage Tourism

Answer: (D)

63. Festivals are great factors of National Integration. Arrange the festivals given below in their order of appearance over English Calender as per the list.

I. Onam

II. Christmas

III. Pongal

IV. Dusshera

Use the following code to choose the correct option.

(A) January, December, August/September, September/October

(B) September/October, January, December, August/September

(C) August/September, December, January, September/October

(D) January, August/September, September/October, December

Answer: (C)

64. Tour operators may keep their prices low by

I. Negotiating low prices from suppliers

II. Reducing profit margins

III. Cutting their cost structure

IV. Avoiding to pay the government taxes

The candidate has to find the correct combination according to the code.

(A) I and II are correct.

(B) I, II and III are correct.

(C) II, III and IV are correct.

(D) I, III and IV are correct.

Answer: (A)

65. Calculate the flying time, if a flight of BA-105 leaves New York (–5 hrs. GMT) at 21 : 00 hrs. local time on Friday and arrives Delhi (+ 5 : 30 hrs. GMT) at 00: 30 hrs. local time on Sunday.

(A) 15 : 00 hours

(B) 15 : 30 hours

(C) 17 : 00 hours

(D) 18 : 00 hours


66. Transport of passengers or goods between two points in the same country by a foreign carrier is called

(A) Freedom of Air

(B) Cabotage

(C) Self-boarding

(D) Patronage

Answer: (B)

67. If the researcher does not have any control over the variables, then the research is referred as

(A) Clinical research

(B) Longitudinal research

(C) Ex-post facto research

(D) Empirical research

Answer: (A)

68. The Approach paper to the Twelfth Plan released by the Planning Commission emphasized the need for tourism to adopt

(A) development of infrastructure approach

(B) ‘pro-poor tourism’ approach

(C) enriching local people approach

(D) benefit the people of coastal regions

Answer: (C)

69. Assertion (A) : Gross profit of a company XYZ is same but its Net Profit Ratio is decreasing.

Reason (R) : The dividend paid by XYZ company is increasing.

Codes :

(A) Both (A) and (R) are possible and (R) is not the correct explanation of (A).

(B) Both (A) and (R) are possible and (R) is the correct explanation.

(C) (A) is possible and (R) is not possible.

(D) (A) is not possible and (R) is possible.

Answer: (B)

70. Match List – I with List – II :

Answer: (A)

71. Special functions organised for professionals, socials or state occasions are referred in hotel parlance as

(A) Meetings

(B) Coffee parties

(C) Banquets

(D) Dinners

Answer: (D)

Read the passage given below and answer the questions 72 to 75 :

      The beautiful Kumarakom starting from 1989 was facing the pressure of resort developers towards back-water ecosystem for tourism. Truly, the introduction of backwater tourism enhanced the local Panchayat revenue towards Rs 20 lakhs per year, but the impact was so heavy that the local farmers were tempted to sell their land at an inflated price and get displaced. Sensing the onslaught of tourism development, the locals expressed their displeasure at Kudumba Yogam (family meeting). The local Panchayat swung into action by creating zones exclusively for tourism for residence and for reserve area along with appropriate solid and water pollution clearance management which increased the water table also. Now, tourists and locals use speed boats, house boats and local boats that criss-cross each other without any irritation. Thus a balancing act has been done sustaining Kumarakom for the locals, tourists as well as for tourism service providers.

72. Back water Ecosystem was at the risk of exploitation by the

(A) Local Panchayat

(B) Kudumba Yogam

(C) Resort developers

(D) Tourists

Answer: (A)

73. One of the following is not true with respect to the passage :

(A) Local Panchayat revenue enhanced.

(B) Locals enjoyed enhanced tourism.

(C) Local farmers nearly got displaced.

(D) Local boats and speed boats criss-crossed.

Answer: (D)

74. The environmental efforts are expressed in the words

(A) Zoning and pollution clearance

(B) Enhanced Revenue and inflated price

(C) Displeasure and Displacement

(D) Residence and Reserve

Answer: (A)

75. Who among the following saved Kumarakom ?

(A) Resort Developers

(B) Local Panchayat

(C) Farmers

(D) Locals

Answer: (B)

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