Accounting & Management MSQS CSS.docx

8/10/2019 Accounting & Management MSQS CSS.docx

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Accounting

(1) Double entry book-keeping was fathered by:

(a) F.W.Taylor

(b) Henry Fayol

(c) Lucas Pacioli.

(2) Funds Flow Statement and sources and application statement are:

(a) Synonymous

(b) Antagonistic

(c) None of these.

(3) Depreciation in spirit is similar to:

(a) Depletion

(b) Amortization

(c) Depression.

4) Balance Sheet is always prepared:

(a) for the year ended.

(b) As on a specified date.

(c) None of these.

(5) In Insurance, the following Profit and Loss Accounts are prepared:

(a) Separate for Fire, Marine, and Accidents etc.

(b) Consolidated for Fire, Marine, and Accidents etc.(c) None of these.

(6) Partners in Pakistan can today be fixed at the following numbers:(a) 20

(b) 50

(c) 75.

(7) Flexible budget is a budget with the following features:

(a) Changes with volume of production.

(b) Changes with variable expenses

(c) Changes in Direct material.

(8) Break Even can be calculated as under:

(a) ______VC_______FC- TR TC

(b) FC

I- VC TR(c) None of these.

(9) Quick Ratio can be computed as under:

(a) Quick . Assets/Quick Liabilities

(b) Quick . Liabilities Current Assets


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(c) Current Assets/ Current Liabilities

(10) In straight line method of depreciation, the written down value of a fixed asset will be

at the end of the life of the asset as under:

(a) Rupee one

(b) Rupee zero (c) None of these.

(11) Sales budget must be prepared:

(a) Independently

(b) Depending on production capacity

(c) Based on Sales forecasts of market.

(12) Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding

company is at present in Pakistan:

(a) Compulsory

(b) Voluntary

(c) Required.

(13) Retained earning is synonymous to:

(a) Accumulated profit and loss account

(b) Profit for the year

(c) None of these.

(14) The requirements of an audit report for a Banking Company in Pakistan is under:

(a) Under the Banking Companies Ordinance, 1962.

(b) Under the Companies Ordinance, 1984.

(c) Under (a) and (b) above.

(15) Deferred Taxation is:(a) Fixed asset

(b) Fixed liabilities

(c) Part of Owners Equity.

(16) Investment Corporation of Pakistan follows:

(a) Open-end mutual funds

(b) Closed-end mutual funds

(c) None of these.

(17) Directors Report is ---- in respect of financial report constituent.

(a) Mandatory for a limited Company(b) Voluntary for a limited Company

(c) None of these.

(18) Every limited Company in Pakistan is required by law to include the following along

with financial reports:

(a) Ratio Analysis

(b) Chairmans Review


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(c) None of these.

(19) Cash budget excludes the following:

(a) Non-Cash items

(b) Cash items

(c) Purchase on Credit items.

(20) NGOs are legally required to:

(a) Prepare accounts in a prescribed manner under the law.(b) Prepare accounts as

desired by donors.

(c) None of these.

Accounting & Auditing Paper -II (2000)

1. Fixed Cost:

a. Changes with production

b. Never changes even if production capacity is doubledc. None of the above

2. Conversion cost is:

a. Material Cost + Overhead Cost

b. Direct Labour + Material Cost

c. Labour Cost + Overhead Cost

3. Process Costing is relevant to:

a. Cement industry

b. Job Order cost oriented Projects

c. None of the above

4. Operating Profit is:

a. Profit after deducting financial costs

b. Profit after deducting taxes

c. Profit after deducting normal operating expenses including depreciation

5. A good Cost Accounting System is:

a. If it computes estimated cost only

b. If it cannot be reconciled with financial accounts

c. If it enables management to increase productivity and rationalize cost structure

6. Verification includes:

a. Checking Vouchers

b. Examining audit report

c. None of the above

7. Stratified audit sample means:


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a. Randomly selected items for audit

b. Purposively selected items for audit

c. Items carefully selected from each group

8. Internal Control is totally synonymous with:

a. Internal checkb. Internal audit

c. None of above

9. Audit of a bank is generally conducted through:

a. Routine checking

b. Couching

c. Balance sheet audit

10. An auditor is liable for his annual audit of accounts o:

a. Creditorsb. Bankers

c. Owners

11. Income Tax is levied on:

a. Agricultural Income

b. Presumptive Income

c. None of above

12. If a firm has paid super-tax, its partners may follow any one of the following

behaviours:

a. No need to pay income tax, even if the income exceeds the taxable limit.

b. Pay income tax, even if the income does not exceed the taxable income.

c. Pay income tax as required under the law.

13. A resident multinational company need not:

a. Pay income tax, if it s caused under Double Taxation agreement.

b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979

(SecondSchedule).

c. None of above

14. Income Tax rates are the same for:

a. Limited Companies

b. Banking Companies

c. None of above

15. Super Tax on companies is:

a. In vogue in Pakistan


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b. Not in vogue in Pakistan

c. None of above

16. Current Ratio is calculated as:

a. Fixed Assets/Current Liabilities

b. Current Liabilities/Current Assetsc. Current Assets/Current Liabilities

17. Short-term loan can be described as:

a. If the period is three years

b. If the period is less than one year

c. If the period is over one year

18. A partnership, in todaysPakistan, under the current law can have the following

number of partners:

a. 50b. 20

c. 100

19. Combination can be best described as:

a. Restructuring of Capital of a Company

b. Reduction of Capital of a Company

c. Amalgamation of two different types of businesses

20. Sources of funds can be increased by:

a. Describing selling prices

b. Increasing expenditure

c. None of above

Accounting & Auditing paper-I (2001)

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Books of original entry are called:

(a) Ledger

(b) Work sheets

(c) Journal

(d) None of these

(2) For preparing balance sheets prepaid expenses are shown as part of:

(a) Liability

(b) Equities

(c) Assets

(d) None of these

(3) Unpaid and unrecorded expenses are called:


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(a) Prepaid expenses

(b) Accrued expenses

(c) Additional expenses

(d) None of these

(4) Amount, cash, or other assets removed from business by owner is:(a) Capital

(b) Drawings

(c) Assets

(d) None of these

(5) Under the diminishing balance method, depreciation amount is:

(a) Payment

(b) Receipt

(c) Expenditure

(d) None of these

(6) Users of accounting information include:

(a) The tax authorities

(b) Investors

(c) Creditors

(d) All of these

(7) The business form(s) in which the owner(s) is (are) personally liable is (are) the:

(a) Partnership only

(b) Proprietorship

(c) Corporation only

(d) Partnership and proprietorship(e) None of these

(8) The investment of personal assets by the owner:

(a) Increases total assets and increases owners equity

(b) Increases total assets only

(c) Has no effect on assets but increases ownersequity

(d) Increase assets and liabilities

(e) None of these

(9) All of the following are forms of organizations except:

(a) Proprietorship(b) Corporation

(c) Retailer

(d) Partnership

(e) None of these

(10) Economic resources of a business that are expected to be of benefit in the future are

referred to as:


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(a) Liabilities

(b) Ownersequity

(c) Withdrawals

(d) Assets

(e) None of these

(11) An owner investment of land into the business would:

(a) Decrease withdrawals

(b) Increase liabilities

(c) Increase owners equity

(d) Decrease assets

(e) None of these

(12) A cash purchase of supplies would:

(a) Decrease ownersequity

(b) Increase liabilities

(c) Have no effect on total assets(d) None of these

(13) An owner investment of each into the business would:

(a) Increase assets

(b) Decrease liabilities

(c) Increase withdrawals

(d) Decrease ownersequity

(e) None of these

(14) The payment of rent each month for office space would:

(a) Decrease total assets(b) Increase liabilities

(c) Increase ownersequity

(d) None of these

(15) Real accounts are related to:

(a) Assets

(b) Expenses and incomes

(c) Customers and Creditors etc.

(d) None of these

(16) Which one of the following accounts would usually have a debit balance?(a) Cash

(b) Creditors

(c) Accounts payable

(d) Salaries Expenses

(e) None of these

(17) Quick assets include which of the following?


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(d) Any location or department which incurs cost

(e) None of these

(4) At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs

were Rs.200. What will be the 401 units sold contributing to profit before income tax?

(a) Rs. 0.00(b) Rs. 0.50

(c) Rs. 1.00

(d) Rs. 1.50

(e) None of these

(5) In considering a special order situation that will enable a company to make use of

currently idle capacity, which of the following cost will be irrelevant:

(a) Materials

(b) Depreciation

(c) Direct labour(d) Variable factory overhead

(e) None of these

(6) A fixed cost:

(a) May change in total when such change is not related to changes in production

(b) Will not change in total because it is not related to changes in production

(c) Is constant per unit for each unit of change in production

(d) May change in total, depending on production with the relevant range

(e) None of these

(7) Completion of a job is result in:

(a) DR finished goods .. CR WIP

(b) DR Cost of goods ...CR finished goods

(c) DR WIP .....CR FOH control

(d) DR FOH control ...CR FOH applied

(e) None of these

(8) Operating cost in often named as:

(a) Manufacturing cost plus commercial expenses

(b) Prime cost plus factory overheads

(c) Direct material plus direct labour

(d) Selling plus administrative expenses

(e) None of these

(9) Expenses such as rent and depreciation of a building are shared by several departments

these are:

(a) Indirect expenses


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(b) Direct expenses

(c) Joint expenses

(d) All of the above

(e) None of these

(10) If under applied FOH is closed to cost of goods sold, the journal entry is:(a) DR Cost of goods sold .. CR FOH control

(b) DR FOH control ....CR Cost of goods sold

(c) DR FOH control ....CR Profit % loss account

(d) None of these

(11) Re-order quantity 3600 units

Maximum consumption ...900 units per week

Minimum comsumption ....300units per week

Re-order period ..5weeks

Based on this data Re-order level is:(a) 4500 units

(b) 3900 units

(c) 1200 units

(d) 400 units

(e) None of these

(12) The time lag between indenting and receiving material is called:

(a) Lead time

(b) Idle time

(c) Stock out time

(d) None of these

(13) A credit balance remaining in FOH Control account is called:

(a) Over-applied overhead

(b) Under-applied overhead

(c) Actual overhead

(d) None of these

(14) Direct material cost plus direct labour cost is called:

(a) Prime cost

(b) Conversion cost

(c) Product cost

(d) All of these

(e) None of these

(15) Productivity means:

(a) The ability to produce


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(b) All units produced

(c) Good units produced

(d) None of these

(16) A segment of the business that generates both revenue and cost is called:

(a) Profit Center(b) Cost Center

(c) Cost driver

(d) All of these

(e) None of these

(17) Verification includes:

(a) Checking vouchers

(b) Examining audit report

(c) None of these

(18) Audit of a bank is generally conducted through:

(a) Routine checking

(b) Vouching

(c) Balance sheet audit

(d) None of these

(19) Economics resources of a business that are expected to be of benefit in the future are

referred to as:

(a) Liabilities

(b) Owners equity

(c) Withdrawals

(d) Assets

(e) None of these

(20) Short term Loan can be best described as:

(a) If the period is three years

(b) If the period is less than one year

(c) If the period is over one year

(d) None of these

Accounting & Auditing Paper-I (2002)

(1) Maximum number of partners in a partnership firm set up in Pakistan underPartnership Act, 1932 is:

(a) 5

(b) 25

(c) 20

(d) None of these

(2) Preparation of final financial reports is governed in Pakistan under:


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(a) No law

(b) Companies Ordinance 1984

(c) None of these

(3) Depreciation is based on:

(a) Economic life of asset(b) Declared life of asset by supplier

(c) Normal life of asset

(d) None of these

(4) Inventory turnover is calculated as under:

(a) Cost of Goods sold/Closing Inventory

(b) Gross profit/Closing Inventory

(c) Sales/Opening Inventory

(d) None of these

(5) There is a difference between:(a) Worksheet and Balance Sheet

(b) Worksheet and profit and loss account

(c) Worksheet as combination of results of profits and financial positions

(d) None of these

(6) Deferred Revenue is:

(a) Liability

(b) Asset

(c) None of these

(7) Preparation of annual report of a firm is governed under:(a) Partnership Act 1932

(b) Under partnership Deed

(c) None of these

(8) Deferred Taxation amount be treated as:

(a) Foot note

(b) An item in the Balance Sheet on asset side

(c) None of these

(9) Return of Equity will be calculated as under:

(a) Operating Profit x 100/Equity(b) Net profit x 100/Paid up Capital only

(c) None of these(Return on Equity is calculated as Net Profit/Shareholders' Equity x 100)

(10) Current maturity of long term loan is:

(a) Current Liability

(b) Long Term Liability

(c) None of these


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Accounting & Auditing Paper-II (2002)

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Prime cost is calculated as under:

(a) Manufacturing Cost/Cost of Goods Sold

(b) Direct Method plus factory overheads(c) Direct labour + Direct Material

(d) None of these

(2) Process Cost is very much applicable in:

(a) Construction Industry

(b) Pharmaceutical Industry

(c) Air line company

(d) None of these

(3) The latest computation of variances of manufacturing overheads is in one the following

ways:(a) Two variance approaches

(b) Three variance approaches

(c) Four variance approaches

(d) None of these

(4) Random sampling in auditing means:

(a) Selection through convenience sampling

(b) Selection through scientific sampling approach

(c) None of these

(5) Expenditure incurred in procuring machinery is:(a) An admissible expenditure for tax purposes

(b) No admissible for tax purposes

(c) None of these

(6) Increase in income constitutes:

(a) Inflows

(b) Outflows

(c) None of these

(7) M & A stands for:

(a) Mergers & Analysis(b) Mergers & Acquisitions

(c) Mergers & Allocation

(d) None of these

(8) An endowment insurance policy can be taken in respect of:

(a) Fire insurance

(b) Accident insurance


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(2) Sugar used in a sugarcane company is:

(a) Variable cost

(b) Fixed cost

(c) None of these

(3) An auditor is liable under the following circumstances:

(a) Third Party Liabilities

(b) Fraud perpetrated in highly sophisticated circumstances

(c) None of these

(4) Agricultural income is taxable under the Income Tax Laws of Pakistan:

(a) True

(b) False

(5) Principal and markup payment within one year constitutes long term liability for

disclosure in the balance sheet of a company.(a) True

(b) False

(6) Ordinarily one can have the following partners in a partnership in Pakistan under the

Partnership Act 1932.

(a) 10

(b) 20

(c) 30

(d) None of these

(7) Working Capital finance can be termed as RunningFinancein a limited company.(a) True

(b) False

(8) Income from Capital gains arising out of trading on a stock strange in Pakistan is

taxable these days:

(a) True

(b) False

(9) Conversion Cost is calculated as under:

(a) Labour Plus Materials

(b) Labour plus overheads(c) None of these

(10) Current Ratio can be calculated as under:

(a) Current Liabilities/Current Assets

(b) Current Assets/Current Liabilities

(c) None of these


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Solved Economics MCQs

Basic Economics MCQs with Answers

D C D C A D C A C C

Economics 100 Quiz 1, Fall 2000

1. The fundamental economic problem faced by all societies is:

a. unemployment

b. inequality

c. poverty

d. scarcity

2. "Capitalism" refers to:

a. the use of markets

b. government ownership of capital goods

c. private ownership of capital goods

d. private ownership of homes & cars

3. There are three fundamental questions every society must answer. Which of the following is/are

one of these questions?

a. What goods and services are to be produced?

b. How are the goods and services to be produced?

c. Who will get the goods and services that are produced?

d. All of the above

4. If you were working full-time now, you could earn $20,000 per year. Instead, you are working

part-time while going to school. In your current part-time job, you earn $5,000 per year. At your

school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of

completing your education is:

a. $2,000

b. $5,000

c. $17,000

d. $20,000

e. $22,000

5. The bowed shape of the production possibilities curve illustrates:

a. the law of increasing marginal cost

b. that production is inefficient

c. that production is unattainable

d. the demand is relatively inelastic

6. You have taken this quiz and received a grade of 3 out of a possible 10 points (F). You are

allowed to take a second version of this quiz. If you score 7 or more, you can raise your score to a

7 (C). You will need to study for the second version. In making a rational decision as to whether or
http://www.cssprep.com/css-prep/subjects/css-prep/151-economics/705-solved-economics-mcqshttp://www.cssprep.com/css-prep/subjects/css-prep/151-economics/705-solved-economics-mcqs


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not to retake the test, you should

a. always retake the quiz

b. consider only the marginal benefits from of retaking the quiz (four extra points)

c. consider only the marginal opportunity costs from taking the quiz (the time spent

studying and taking the quiz)

d. consider both the marginal benefits and the marginal opportunity costs of retaking the quiz

7. The law of demand states that:

a. as the quantity demanded rises, the price rises

b. as the price rises, the quantity demanded rises

c. as the price rises, the quantity demanded falls

d. as supply rises, the demand rises

Economics 100 Quiz #1, Page 2

8. The price elasticity of demand is the:

a. percentage change in quantity demanded divided by the percentage change in price

b. percentage change in price divided by the percentage change in quantity demanded

c. dollar change in quantity demanded divided by the dollar change in price

d. percentage change in quantity demanded divided by the percentage change in quantity supplied

9. Community Colleges desired to increase revenues. They decided to raise fees paid by students

with Bachelors degrees to $50 per unit because they believed this would result in greater

revenues. But in reality, total revenues fell. Therefore, the demand for Community College courses

by people with Bachelors degrees must have actually been:

a. relatively inelastic

b. unit elastic

c. relatively elastic

d. perfectly elastic

10. The demand for a product would be more inelastic:

a. the greater is the time under consideration

b. the greater is the number of substitutes available to buyers

c. the less expensive is the product in relation to incomes

d. all of the above

Answers: D C D C A D C A C C


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Economics 100 Quiz #3 2000

B B B A D A C B C C

1. In the case of agriculture,

a. the demand has shifted to the right more than the supply has shifted to the right

b. the demand has shifted to the right less than the supply has shifted to the rightc. the demand has shifted to the left more than the supply has shifted to the left

d. the demand has shifted to the left less than the supply has shifted to the left

2. The agricultural price support program is an example of

a. a price ceiling

b. a price floor

c. equilibrium pricing

3. If there is a price floor, there will be

a. shortages

b. surpluses

c. equilibrium

4. If there is a price ceiling, there will be

a. shortages

b. surpluses

c. equilibrium

5. If there is a price ceiling, which of the following is NOT likely to occur?

a. rationing by first-come, first-served

b. black markets

c. gray markets

d. sellers providing goods for free that were formerly not free

6. The goal of a pure market economy is to best meet the desires of

a. consumers

b. companies

c. workers

d. the government

7. In a pure market economy, which of the following is a function of the price?

I. provide information to sellers and buyers , II. provide incentives to sellers and buyers

a. I only

b. II onlyc. both I and II

d. neither I nor II

8. In a market system, sellers act in ____________ interest , but this leads to behaviors in

____________ interest.

a. self; self

b. self; societys


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c. societys;societys

d. societys;self

9. The law of diminishing (marginal) returns states that as more of a variable factor is added to a

certain amount of a fixed factor, beyond some point:

a. Total physical product begins to fall

b. The marginal physical product rises

c. The marginal physical product falls

d. The average physical product falls

10. Why is the law of diminishing marginal returns true?

a. specialization and division of labor

b. spreading the average fixed cost

c. limited capital

d. all factors being variable in the long-run

Answers: B B B A D A C B C C

Economics 100 MW Quiz #3

A A C C D D B D D C

1. Which of the following is a characteristic of pure monopoly?

a. one seller of the product

b. low barriers to entry

c. close substitute products

d. perfect information

2. In pure monopoly, what is the relation between the price and the marginal revenue?a. the price is greater than the marginal revenue

b. the price is less than the marginal revenue

c. there is no relation

d. they are equal

3. In order to maximize profits, a monopoly company will produce that quantity at which the:

a. marginal revenue equals average total cost

b. price equals marginal revenue

c. marginal revenue equals marginal cost

d. total revenue equals total cost

4. Quantity Price Total Cost1 $100 $ 60

2 95 130

3 90 210

4 85 300

5 80 400

This monopolist should produce:


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a. 1

b. 2

c. 3

d. 4

e. 5

5. Compared to the case of perfect competition, a monopolist is more likely to:

a. charge a higher price

b. produce a lower quantity of the product

c. make a greater amount of economic profit

d. all of the above

6. Which of the following is necessary for a natural monopoly?

a. economies of scale

b. a high proportion of the total cost is the cost of capital goods

c. the market is very small

d. all of the above

7. Which of the following is true about the way by which SDG&E has been regulated by the PUC?

a. SDG&E has been allowed to earn very high economic profits

b. The profits of SDG&E are calculated as a percent of the value of the capital goods

c. When the demand for electricity would fall, the price of electricity would also fall

d. All of the above

8. Which of the following best defines price discrimination?

a. charging different prices on the basis of race

b. charging different prices for goods with different costs of production

c. charging different prices based on cost-of-service differences

d. selling a certain product of given quality and cost per unit at different prices to different buyers

9. In order to practice price discrimination, which of the following is needed?

a. some degree of monopoly power

b. an ability to separate the market

c. an ability to prevent reselling

d. all of the above

10. In price discrimination, which section of the market is charged the higher price?

a. the section with the richest people

b. the section with the oldest people

c. the section with the most inelastic demand

d. the section with the most elastic demand

Answers: A A C C D D B D D C

Economics 100 Quiz #4, Fall 2002


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C B A C C A B D A B

1. Which of the following concepts represents the extra revenue a firm receives from the services

of an additional unit of a factor of production?

a. total revenue

b. marginal physical product

c. marginal revenus productd. marginal revenue

2. Workers Quantity Produced

1 15

2 28

3 39

4 48

5 55

6 60

This company is a profit-maximizing firm selling in a competitive product market and hiring in a

competitive labor market. It uses semi-skilled labor to produce dampers used in office building

ventilation systems. Assume that the current market price per damper is $50 and that the

prevailing weekly salary per semi-skilled worker is $550. This company should employ ______

workers.

a. 2

b. 3

c. 4

d. 5

e. 6

3. The demand for labor is the same as the

a. marginal revenue productb. marginal physical product

c. marginal cost

d. wage

4. The demand for labor slopes down and to the right because of

a. the law of demand

b. the iron law of wages

c. the law of diminishing marginal returns

d. economies of scale

5. The demand for labor will be more elastic if:

a. there are few substitutes for labor

b. there is a short time under consideration

c. labor is a large percent of the total cost of production

d. the demand for the product is relatively inelastic

e. all of the above

6. Skills that can be transferred to other employers are called:

a. general skills


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b. specific skills

c. non-pecuniary skills

d. all of the above

7. Which skills are most likely to be paid for by the employer?

a. General skills

b. Specific skills

c. Educational skills

8. If worker A earns more in wages than worker B, it could be because:

a. The product made by worker A sells for a higher price than that made by worker B

b. Worker A uses more capital per worker than worker B

c. Worker A has more natural ability than worker B

d. All of the above

9. Skills that embodied in a person are called

a. Human capital

b. Embodied skillsc. Physical capital

d. Experience skills

10. Treatingan individual as typical of a groupis the definition of

a. pure discrimination

b. statistical discrimination

c. human capital

d. specific skills

Answers: C B A C C A B D A B


1. If there are 50 firms in a industry, each selling 2% of the total sales, the concentration ratio is:

a. 50%

b. 2%

c. 100%

d. 8%

2. When Daimler Benz, maker of the Mercedes, bought Chrysler, the merger was

a. horizontal

b. vertical

c. conglomerate

Quest ions 3 through 10 invo lve the funct ions of the government in a wor ld of la issez fai re . The

funct ions are the fo l lowing:

A. Create and Enfo rce the "Rules"

B. Promote or Mainta in Compet i t ion

C. Provide Inform ation

D. Provide Publ ic Go ods


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E. Reduce Negative External it ies (External Costs ) through regulations o r throu gh taxes

F. Subsidize Posit ive External i t ies (External Benefi ts)

G. Provid e Meri t Good s

H. Redistr ibut e Income on t he Basis of Need

For each o f the fo l lowing, choos e the le tter that best descr ibes the funct ion o f government.

3. The government provides anti-trust laws.

4. The government subsidizes the building of new stadiums and arenas.

5. The government provides for military defense.

6. The government has a program of social security to provide a pension for the elderly.

7. The government requires that all gasoline stations post their prices in signs large enough

to be seen by a reasonable person from the street.

8. The government requires people to have a smog control device in their cars.

9. The government makes the beach free for everyone

10. The government makes laws that determine certain behaviors that a corporation must engage

in and other behaviors that a corporation cannot engage in.

Answers: D A B F D H C E G A

Economics 100 Quiz 6, Fall 2002

A C A C E C B C A D

1. The largest source of tax revenue for the federal government is:

a. the personal income tax

b. the social security tax

c. the property tax

d. the sales tax

2. When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I

paid $40,000 in taxes. My marginal tax rate is:

a. 10%

b. 20%c. 30%

d. 40%

3. The tax is question #2 is:

a. progressive

b. regressive

c. proportional


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4. Which of the following taxes is regressive?

a. the federal income tax

b. the state income tax

c. the sales tax

d. the Medicare tax

5. Assume that there are two goods, A and B. In 1996, Americans produced 10 units of A at a price

of $10 and 20 units of B at a price of $20. In 2002, Americans produced 20 units of A at a price of

$20 and 30 units of B at a price of $30. The Nominal GDP for 2002 is:

a. $100

b. $400

c. $500

d. $900

e. $1300

6. Using the numbers in question 5, the Real GDP for 2002 is:

a. $400 b. $500 c. $800 d. $900 e. $1,300

7. Which of the following statements is/are true?

a. Business Investment Spending occurs when individuals buy stock in the stock market

b. Productivity is the United States grew very slowly between 1973 and 1996

c. Because of discouraged workers, the official unemployment rate is too high

d. Fullemploymentoccurs when there is no frictional unemployment

8. Immediately after a trough, we would expect to have a/an

a. peak

b. recession

c. recovery

d. another trough

9. Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the

week, she spent looking for a job. Martha would be classified as

a. employed

b. unemployed

c. not in the labor force

10. John lost his accounting job when Montgomery Wards closed its stores in San Diego. He

looked for a similar job for ten months before finding an accounting job at Sears. During the

month John was unemployed, he was

a. frictionally unemployedb. seasonally unemployed

c. cyclically unemployed

d. structurally unemployed

Answers: A C A C E C B C A D

Economics 100 Makeup for Quiz 6


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1. Define average tax rate

Define marginal tax rate

2. Define progressive tax

Define regressive tax

Define proportional tax

3. Define indexation

4. Define Nominal Gross Domestic Product (GDP)

Define Real Gross Domestic Product (GDP)

5. Define business investment spending

6. Briefly explain how the official unemployment rate is calculated.

7. Define frictional unemployment

Define cyclical unemploymentDefine structural unemployment

Define fullemployment


1. Assume that there are only two goods: A and B

In the base year, Quantity Price

A 10 $1

B 10 $4

In the current year, Quantity Price

A 20 $ 5

B 25 $20The Consumer Price Index (CPI) for the current year is:

a. 50

b. 100

c. 200

d. 500

e. 600

2. Which of the following groups is most hurt by unexpected inflation?

a. workers with cost of living adjustments in their labor contracts

b. homeowners

c. people with large debts to pay for their homes and cars

d. people with large retirement savings held in savings accounts

3. If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate is:

a. 2%

b. 3%

c. 5%

d. 7%

e. 2 %


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Economics 100 Quiz 8

D C C A C A C D C B

1. Which of the following IS a function of money?

a. medium of exchange

b. store of valuec. unit of accounting

d. all of the above

2. Which of the following is a component of M-1?

a. savings deposits

b. credit card

c. checkable deposits

d. gold

3. Which of the following is a NOT component of M-2?

a. small time deposits

b. money market mutual funds

c. stocks

d. checkable deposits

4. Which of the following is true about the Federal Reserve System (Fed)?

a. it is a system of 12 central banks

b. its Board of Governors is elected by a vote of the people

c. its main policy-making body is the FDIC

d. it accepts deposits from the public and makes loans to businesses

e. all of the above

5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called:a. discounts

b. federal funds

c. reserves

d. collateral

6. Which of the following is the most liquid?

a. a savings account

b. a 6 month CD

c. a home

d. water

7. The monetary base is composed of:a. gold and silver

b. currency only

c. currency and reserves

d. currency and checkable deposits

8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10),

by how much will the money supply be increased?


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a. $100

b. $1,000

c. $5,000

d. $10,000

9. If the Federal Reserve wishes to increase the money supply, it should:

a. raise the reserve requirement

b. raise the discount rate

c. buy Treasury securities in the open market

d. all of the above

10. An increase in the money supply will cause interest rates to

a. rise

b. fall

c. remain unchanged

Answers: D C C A C A C D C B

Solved Public Administration MCQs

COMPULSORY QUESTION 2000

9. Write only the correct answers in the Answer Book. Dont reproduce the questions.

(1) The founder of Scientific Management School of thought was:(a) F.W. Taylor(b) Herber Simon(c) Pfiffner John(d) Mary Parker Follet

(2) The father of Human Relations theory was:(a) Douglas M. McGregor(b) Elton Mayo(c) E.N.Gladden(d) L. Urwick

(3) The founding father of theory of Bureaucracy was:

(a)Herman Finer(b) La Palombra(b) Max Weber(d) Albert Lepawsky

(4) Systems theory of management is based on the concept of components having:(a) Independence(b) Inter- dependence(c) Dependence(d) Contingency


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(5) Bureaucracy of Pakistan is:(a) Elitist(b) Agilitarian(c) Oligarchy(d) Paternalistic

(6) Administrative accountability is established in government organizations by:(a) Executive(b) Legislature(c) Judiciary(d) All the three above

(7) The first book on Public Administration was written by:(a) Pfiffner and Presthus(b) L. D. White(c). Simon, Smithburg and Thompson(d) E.N. Gladden

(8) Public Administration is the study of:

(a) Maintenance of Law and Order(b) Control of trade and commerce(c) Public Policy implementation(d) Politico-administrative dynamics of the state.

(9) Planning machinery in Pakistan is:(a) Centralized(b) Decentralized(c) Departmentalized(d) Compartmentalized

(10) Financially the performance of public corporations in Pakistan during the last decade has been:(a) Excellent

(b) Good(c) Satisfactory(d) Poor

(11) Public Personnel Management in Pakistan is based on the principle of:(a) Spoils(b) Patronage(c) Merit(d) Give and take

(12) Communication runs faster in:(a) Centralized structure(b) Decentralized structure

(c) Matrix structure(d) Line structure

(13) Performance budgeting is based on:(a) items of expenditure(b) items of investment(c) objectives of expenditure(d) plan of implementation

(14) The concept of Politics-Administration dichotomy was given by:


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(a) Frank Henry Goodnow(b) James W. Fes1er(c) W Paul Appleby(d) Ordway Tead

(15) The form of Leadership in the bureaucracy of Pakistan js:(a) Aristocratic(b) Democratic(c) Dictatorial(d) Paternalistic

(16) The President of U. S. who laid the foundation of the study of public administration was:(a) President Wilson(b) President Hoover(c) President Kennedy(d) President Roosevelt

(17) Formal relationship in an organization is based On:(a) Friendship(b) Peer groups

(c) Authority on subordinates(d) Rules and Regulations

(18) The Ideal Model of bureaucracy is based on authority of:(a) Tradition(b) Charisma(c) Legal rational(d) Money

(19) Pressure groups in public administration work for:(a) Public interest(b) Self interest(c) Foreign interest

(d) Sectoral interest

(20) The administrative reforms under which various services were merged in occupational groups wereintroduced in:(a)1960(b) 1973(c) 1989(d) 1994

COMPULSORY QUESTION 2001.Q. 9. Write only the correct answers in the Answer Book. Dont reproduce the questions.

(I) Public Administration may be defined as:(A) Management of industry

(B) Administration of Public(C) Management of Property(D) Administrative Capacity(E) None of these

(2) The concept of "bounded rationality" was given by:(A) Wax Weber(B) F. W. Riggs(C) Herbert Simon(D) Abraham Maslow


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(E) None of these

(3) Bureaucracy is based on:(A) Traditional Authority(B) Personal Authority(C) Charismatic Authority(D) Corporate Authority(E) None of these

(4) Behaviorism is associated with:(A) Rationalism.(B) Communication.(C) Socialism.(D) Humanism(E) None of these

(5) The author of "The Function of the Executive" is:(A) F. W. Taylor(B) Chester Bernard(C) Mary Parker Follet

(D) Henry Fayol(E) None of these

(6) Which of the following is not of the core values of public administration?(A) Equity(B) Efficiency(C) Effectiveness(D) Bureaucracy(E) None of these

(7) Which of the following is one of the features of bureaucracy conceived byMax Weber?(A) Authority

(B) Hierarchy(C) Publicness(D) Civil society(E) None of these.

(8) Which of the following is an essential component of a formal organization?(A) Decentralization(B) Formal Structure(C) Power(D) Centralization(E) None of these

(9) Bureaucracy is a form of:

(A) Political Organization.(B) Social Organization(C) Community Organization(D) Private organization(E) None of these

(10) McGregor's name is most commonly associated with one of the following:(A) Bureaucratic Theory(B) Scientific ManagementC) Theory X and theory Y


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(D) Human Relations(E) None of these

(11) Legal-rational authority" is a core concept of:(A) Public Choice Theory(B) Theory of Emergency(C) Maslow's Theory of Motivation(D) Theory of Bureaucracy(E) None of these

(12}One of the four functional imperative of a system identified by the Talcott Parsons is:(A) Efficiency(B) Effectiveness(C) Adaptation(D) Entropy(E) None of these

(13) "Entropy" is a law of nature in which all forms of organizations move towards:(A) Growth and Continuity(D) Continuous Improvement

(C) Rebirth and Emergency(D) Disorganization and Death(E) None of these

(14) One choice theory is economic explanation of:(A) Religion(B) Islam.(C) Political decision making(D) Psychology.(E) None of these.

(15) System. Theory is associated with the work of following:(A) Leonard While

(B) Mary Parker Follet(C) Talcott Parsons(D) F.W. Taylor(E) None of these

(16) Which one of the following is the foundation of modern Human Resource(A) Specialization(B) Compensation(C) Job Analysis(D) Job Evaluation(E) None of these

(17) The process of transmitting the idea or thought into meaningful symbols is called:

(A) Decoding(B) Feedback(C) Reception(D) Encoding(E) None of these

(18) Which of the following will not be considered as a formal organization?(A) A Hospital(B) A University(C) A Group of Friends


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(D) A Service Industry(E) None of these

(19) Which of the following violates the principle of Utility of Command?(A) Bureaucratic Organization(B) Functional Organization(C) Manufacturing Organization(D) Product Organization(E) None of these.

(20) Which of the following is not a feature of good governance?(A) Accountability(B) Transparency(C) Nepotism(D) Rule of law(E) None or these.

Compulsory Question 2002

8. Write only the correct choice in the Answer Book. Don't reproduce the statement.

1. An organization which successfully achieve the goals will be considered as:(a) Efficient(b) Systemic(c) Effective(d) Reasonable(e) None of these

2. An organization using its resources wisely and in a cost effectively way is considered:(a) Conservative(b) Modern(c) Effective(d) Efficient(e) None of these

3. Grouping activities and resources in an organization is a function of:(a) Leading(b) Organizing(c) Coordination(d) Monitoring(e) None of these

4. The dominant role in developing Scientific Management was played by:(a) Henri Fayol(b) F. W. Taylor(c) Harrington Emerson(d) Frank Gilbreth

(e) None of these

5. The most articulate spokesperson of Administrative Management was:(a) Max Weber(b) Chester Barnard(c) Lyndall Urwick(d) Henri Fayol(e) None of these

6. Hawthrone studies were mainly conducted by:


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(a) Elton Mayo(b) Hugo Munsterberg(c) Mary Parker(d) Henry Gantt(e) None of these

7. Two or more sub systems working together to produce more than the total of what they might produceworking alone is(a) Open System(b) Closed System(c) Sub System(d) Synergy(e) None of these

8. An attempt to integrate common business practices from the United States and Japan into one middleground framework has been termed as:(a) Theory X(b) Theory Y(c) Type Z Model(d) Universal Model

(e) None of these

9. The owners, Employees, Board or Directors and Culture will form the organization's:(a) Internal Environment(b) External Environment(c) Task Environment(d) General Environment(e) None of these

10. The appropriate managerial behavior in a given situation depends on a wide variety of elements is:(a) Classical Approach(b) Quantitative Approach(c) Behavioral Approach

(d) Contingency Approach(e) None of these

11. A goal set by and for top management of the organization is:(a) Tactical Goal(b) Strategic Goal(c) Operational Goal(d) Specific Goal(e) None of these

12. Balancing and reconciling possible conflicts among goals is:(a) Communication(b) Leading

(c) Inconsistency(d) Optimizing(e) None of these

13. A plan that generally covers a span of one year or less is:(a) Operational Plan(b) Intermediate Plan(c) Long range Plan(d) Short range Plan(e) None of these


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14. Behavior that does not conform to generally social norms will be considered as:(a) Arrogant Behavior(b) Arbitrary Behavior(c) Ethical Behavior(d) Unethical Behavior(e) None of these

15. Conceptual and Diagnostic skills in an organization are mostly used by:(a) General managers(b) Top managers(c) Middle managers(d) First line managers(e) None of these

16. A theory suggesting that people are motivated by a hierarchy of needs was advanced by:(a) Douglas Mc Gregor(b) Arthur D. Little(c) Abraham Maslow(d) F. W. Riggs

(e) None of these

17. The extent to which an organization complies with local, state and Federal Laws is:(a) Social Compliance(b) Philanthropic Awarding(c) Ethical Compliance(d) Legal Compliance(e) None of these

18. The process by which a manager assigns some of his total work load to others is:(a) Decentralization(b) Delegation(c) Division of work

(d) Centralization(e) None of these

19. Power that has been legitimized by the state is:(a) Political authority(b) Charismatic authority(c) Traditional authority(d) Legal authority(e) None of these

20. A condition in which the availability of each alternative and its potential pay off and costs are allassociated with probability estimates is:(a) State of risk

(b) State of certainty(c) State of mild certainty(d) State of high certainty(e) None of these

COMPULSORY QUESTION 20048. Write only correct answer in the answer book. Do not reproduce the question.

(1) The connection between the politics and public administration is:a) Politics seeks to deal controversial issues and public administration is the means wherebydecisions are implemented.


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b) The politicians and administrators do not share unique partnership.c) Public administrator indulges in party politics.d) Administrators having strong political conviction, they cannot pursue a carrier of public servant.e) None of these

2. How the Role of public administration is determined by the people or Government? Can it be aa) The civilization fails means the breakdown of public administration.b) Modern democracy can perform this job well.c) Moral conviction is vital for its role.d) Social and economical developments are more feasible than any branch of government.e) None of these

3. Human Relations is the study of the people in action that is:a) The people work in a team spirit or not.b) Social factors are equally important besides technical.c) Human aspectsignorance is at managementsriskd) Humansdignity is inseparable from human relations.e) None of these

4. Management improvement is possible by systematic theory if:

a) Investigator helps the decision-maker in solving problem.b) Systematic theory identifies with operation research.c) Defence problemsprogramming is done smoothly.d) It ascertains the future performance.e) None of these

5.The bureaucracy has certain characteristics that are:a) It is hero or villain or form of social organization.b) It has pathological tendencies.c) It has a specialized structure of the nation.d) It is indispensable in modern country.e) None of these

6. Bureaucracy is seen as corruptible or otherwise:a) Bureaucracy is essential and necessary evil.b) Bureaucracysrole as a pariah or savior.c) Bureaucracy is suspected politically.d) If bureaucracy fails, it is accused as pariah.e) None of these

7. Administrative leadershipscharacter inspires confidence when it uses:a) Force and bargain to achieve goals.b) Bases adequately built upc) Leader must become the servant of the peopled) Leader must possess professional ethics.e) None of these

8. Administrative accountability must be accompanied by:a) If power is not abused.b) If Ombudsman is independent and non-partisan.c) If it brings home through legislature.d) It can be achieved through responsible government.e) None of these

9. Judicial control can achieve administrative accountability successfully if:a) Rule of law is strictly followed.


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b) Judicial process should not be cumbersome.c) Judicial process should be easy and approachable.d) Administrative action must be under judicial review.e) None of these

10. Planning and its technique is common to all human activity such as:a) Unity of programme and timeliness of programme.b) Peoples following is necessary for successful plan.c) Planners require reliable data for success.d) Coordination is must in viable planning.e) None of these

11. How can effective planning be made meaningful:a) If it has management supportb) Its objective must be clearly defined.c) Its feasibility standards mush show wisdomd) It provides valuable learning experience.e) None of these

12. Public corporation is the innovation of 20th century. The basic features are:

a) Public corporation is a corporation by courtesyb) It is created for particular purpose.c) It is the result of Governments entry into business. d) It has virtue of business management.e) None of these

13. Mechanistic theory is formal structure of organization. Its functions are:a) Drawing up plan for large-scale enterprisesb) It does not tally with realities.c) It s the result of Governmentsentry into businessd) A human problem requires human solution.e) None of these

14. The organization is the act of designing administrative structure. It requires:a) The determination of what activities are necessary.b) No engineering approach to achieve goal.c) Staff for managing it.d) The allocation of functions and responsibilities to individual.e) None of these

15. Centralization and decentralization are the problems of relationship between higher and lower levelsof government. They can be solved by:a) Introduction of local bodies in the country.b) Solving territorial and functional problemsc) Solving the jurisdictional disputes.d) Active determination of external factors between the two

e) None of these

16. Zero-base budgeting evaluates current and new activities and programs which solve:a) The governmental programs in detail.b) The risks involving decision-developing and ranking packages.c) The organizational services programs.d) The basic developmental issues.e) None of these

17. The civil services of Pakistan have become a caste by themselves involving public criticism such as:


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a) They are legacies of British colonial ruleb) They have lowered the quality of national life.c) They have breeded corruption and inefficiencies.d) They have become professionally incompetent.e) None of these

18. Communication is a crucial element in administration and felt by:a) As the heart of management.b) As it makes administrative procedure smooth.c) As it is the nerve center of administration.d) As it is the blood stream of the organization.e) None of these

19. Co-ordination is the removal of conflicts from the organization by:a) Securing co-operation and team workb) Securing organizational goalsc) Securing harmonious organizationd) Removing overlapping and working cross purposes.e) None of these

20. The Public Services of Pakistan can be made worthwhile if:a) Young men and women are recruited on merit.b) They are not used for political ulterior motives.c) They are trained in nationalistic spirit and religious valuesd) They must be awarded equal opportunity of advancement.e) None of these


Write only the correct answer in the Answer Book. Do not reproduce the question.

(1) In an organization, if uniformity of standards and policies is maintained and the head providesdirection to all activities, then it is sign of:(a) Efficiency

(b) Decentralization(c) Centralizations(d) Effective Coordination(e) "None of these

(2) Span of Contro 1 Means:(a) Power to control an enterprise(b) Duration of executive control(c) Number of subordinates under a superior's direct control(d) Overall control of an organization(e) None of these

(3) Public corporations have been created with the objective of:

(a) Increased profits(b) Handling large scale projects(c) Creating various job opportunities(d) Operational flexibility and autonomy(e) None of these

(4) In United State the practice of making appointments in public services on the basis of politicalaffiliation and personal relationship is known as:(a) Party Privilege(b) Spoils System


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(b) An executive ordering the transfer of an employee in another department.(c) A head of the department approving a financial sanction.(d) A committee approving a new rule to meet the future public requirements. (e) None of these.

(13) A budget is essentially a statement of:(a) Identification of targets to be achieved.(b) Surplus or deficit of the previous budget.(c) Estimated revenue and expenditure over a period of time.(d) Allocation of funds in various heads of expenditure.(e) None of these.

14-The categorization of functions with reference to their direct or indirect concern with the achievementof organizational goals is called as:(a) Primary and Secondary functions(b) Line and Staff functions(c) Major and Minor functions(d) Central and Peripheral functions(e) None of these

15-Who wrote the famous book "Research on the Bureaucracy in Pakistan":(a) Muneer Ahmad(b) Brian Chapman(c) Inayatullah(d) Ralph Braibanti(e) None of these

16-Administrative Reforms-have been a consistent effort in Pakistan since independence.The first Re-organization Committee was constituted in 1947. Who headed the Committee?(a) Justice Muhammad Muneer(b) Sir Victor Turner(c) Akhtar Hussain(d) Rowland Eggar

(e) None of these

17-In the Constitution of Pakistan, the subjects for legislation have been divided into:(a) Two Lists(b) Three Lists(c) Four Lists(d) Five Lists(e) None of these

18-One of (he most significant achievement of the Ford Foundation's technical assistance to Pakistan inI960, was the establishment of:(a) Pakistan Administrative Staff College, Lahore.(b) National Institute of Public Administration Karachi.

(c) Secretariat Training Institute, Islamabad,(d) National Defence College, Rawalpindi,(e) None of these.

19-The introduction of the Section Officers Scheme in the Central (Federal) Secretariat in 1961, wasmade on the recommendation contained in:(a) Farooqi Report(b) Cornelius Report(c) Shoib Report


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e) the manager's challenge

7) The individual performance equation is concerned with:a) capacity, willingness, opportunityb) capacity , effort, opportunityc) effectiveness, effort, willingnessd) effort , opportunity, threate) opportunity, capacity, intelligence

8) Personality contributes to considerations of:a) what individuals can beb) what individuals will doc) what individuals are liked) organizational supporte) difference between men and women

9) For people who work hard but still do not achieve high performance levels,there may be:a) lack of fit between individuals attributes and task requirements.b) improper allocation of rewardsc) low motivation

d) too much motivatione) lack of psychological need satisfaction

10) Content motivation theories are represented by:a) Maslow, Alderfer, Herzberg, and McCllandb) Maslow, Alderfer, Herzberg, and vroomc) Maslow, Adams, Herzberg, and vroomd) Alderfer, Adams, McClland,and vroome) Alderfer, Maslow, Adams

11) Intrinsic work rewards are:a) received by an indivdual directly as a result of task performance.b) externally controlled

c) sometimes internally controlled,sometimes externally controlled.d) generally less important than extrinsic reward.e) generally outside the control of managers.

12) Vertical job loading involves:a) employee planning and evaluating responsibilities.b) performance of more tasks.c) performance of different tasks on different days.d) employee cleanup responsibilitiese) employee promotion up the organization hierarchy

13) Job enrichment:a) must be directed towards individuals

b) must be directed towards groupsc) can be directed toward either groups or individuals.d) tends to receive strong labor union supporte) can be applied to all workers equally well.

14) Rewarding individual results tends to:a) increase cohesivenessb) decrease cohesivenessc) increase performance normsd) decrease performance norms


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e) have little or no effect on cohesiveness nor performance norms

15) The process whereby individuals or groups are held responsible for making their own decisions isknown as:a) autonomyb) empowermentc) team buildingd) multiskillinge) self-responsibility

16) Which of the following term is used in leadership research to describe a leader who shows a greatdegree of emphasis on the welfare of his/her subordinates?a) employee-centeredb) production-centeredc) compassion-centeredd) work -orientede) structure-centered

17) Charisma is related to which type of leadership?a) managerial

b) transformationalc) relationship motivatedd) employee-centerede) structuring

18) What are the two basic type of leadership?a) ethical and programmedb) programmed and craftedc) programmed and certaind) crafted and uncertaine) non routine and crafted

19) Interpersonal communications is the:

a) process of translating and idea or thought into meaningful symbols.b) interpretation of symbols sent from sender to the receiver.c) process by which entities exchange information and establish a common understanding.d) process of telling someone else how can feels about something the person did or said about thesituation in general.e) process of sending and receiving symbols with attached meanings--from one person---toanother.

20) Effective communication occurs when:a) the receiver does as the sender says.b) job satisfaction is improvedc) the intended meaning of the source is the same as the perceived meaning of the receiverd) the sender is clear and articulate

e) the receiver provides feedback to the sender.COMPULSORY QUESTION 2007

Q.8 Write only the correct answer in the answer book.

(1) Who has defined Public Administration as a detailed and systematic application of law? Everyparticular application of law is an act administration:(a) L.D. White(b) Woodrow Wilson


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(C) Pfiffner(d) Luther Guilik(e) None of these

(2) What is another view of the scope of POSDCORB study of public Administration in modern times?(a) Subject matter view of Public AD.(b) principle view of P.Ad(c) Process view of P. Ad(d) Coordination view of P.Ad(e)none of these

(3) The Human-relation approach was the result of over-emphasized the character of scientific -movement approach. Name the leader of this approach:(a) Max-Weber(b) Elton Mayo(c) F.J Taylor(d) Roehthlisborge(e)none of these

(4) The bureaucracy has been defined as a system of administration characterized by expertness,

impartiality and absence of humanity. who defined this.(a) Charles Kannady(b) Max-weber(c) Braibanti Ralph(d) Peter M . Blau(e)none of these

(5) What do u assess the status of bureaucracy under devolution plan-2000? whether they have become?(a) Reformer.(b) Pariah(c) more responsible(d) more nationalist(e)none of these

(6) The system-theory is mostly applied in militry operations because:

(a) it is most objective(b) it has many alternatives(c) it is less costly(d) it has many major policy alternatives(e) none of these

(7) The charismatic leadership whose authority has a legitimacy based on charismatic grounds. Do uthink it is suitable in Pakistan on following grounds:(a) Social - relation grounds(b) political grounds

(c) Larger mission grounds(d) organizational grounds(e) None

(8) There r many bases of administrative leadership, u select one more suitable:(a) more appropriate base(b) political base(c) economic base(d) dynamic base(e) institutional base


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(f) none

(9) in ur view which is the best way of tackling administrative complaints:(a) By judiciary(b)By legislature(c) By people representation(d) By professional bodies(e) none

(10) In the best interest of country, what types of planning is more suitable and appropriate:(a) Participative(b) Physical(c) Social(d) Economic(e) None

(11) there are many theories of organization bt all have been classified in two. which theory u considerviable in present era?(a) Human relation theory(b) Mechanistic theory

(c) Behavioural theory(d) communication theory(e) None

(12) The units of organization r divided into line unit and staff unit according to their functions. u name theunits accordingly:(a) Advisory(b) legislative(c) judicial(d) executive(e) none

(13)`the following r the foundations of modern personal system. which system u preferred most:

(a) tenure system(b) merit system(c) public service as a career(d) system of position classification(e) none

(14) there r many sources of coordination and control which r mentioned blow. which source u considermore viable?(a) human attributes(b) function differentiation(c) specialization(d) delegation of authority(e) none

(15) the proper continuity of communication system in public administration is a serious problem. u pointout which hindrance blow must be removed first?(a) language difficulty(b) frame of mind(c) status distance(d) geographical distance(e) none

(16) you point out correct on in the following:


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(a) Deficit-financing is boon in developing countries(b) Deficit-financing is curse in the developing countries(c) Deficit-budgeting is a boon in the developing countries(d) Deficit-budgeting is a curse in the developing countries(e) none

(17) U tick out the correct one machinery which is most effective in financial admn.(a) Legislature(b) the central department concerned with financial Admn.(c) principal financial officers in the administrative deptt.(d) audit organization(e) none

(18) the oral and written communication of individual is mentioned in the following. u mark out the mosteffective communication.(a) discretion of the individual(b) individual skills(c) individual intelligence(d) personal contacts(e) none

(19) the followings r some administrative changes r made made under administrative reform-1972. u pointout the most sustainable change in it:(a) reorganization of secretariat and departmental structure(b) eradication of corruption(c) steam lining of disciplinary procedure(d) reorganization of system retirement(e) none

(20) point out the most important defect in public bureaucracy of Pakistan. some are given below:(a) Exploitative(b) Aggrandizing(c) corrupt

(d) most privileged(e) none


Q.1. Select the best one.

1. All are the characteristics of Administration except:a. It is a science and artb. Has techniques that are universally applicablec. Is a professiond. Is not distinct from ownershipe .None of these

2. According to an early definition that kind of management which conducts a business or affairs bystandards established by facts or truth gained through systematic observation experiments or reasoningis known asa. Classical managementb. Bureaucratic managementc. Neo-classical managementd. Scientific managemente. None of these

3. H.Foyal, Terry, Koontz and ODonnel had the following view regarding Administration and


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managementa. Management and Administration are oneb. Administration is a part of Managementc. Management and Administration are differentd. Depends on the type of organizatione. None of these

4. Human Relations approach was a metamorphic step in management theory and practice. The studiesfor this movement were carried out ata. Hawthorne plant at Western Electric Company, Chicagob. Hawthorne plant at Harvard Universityc. HRD Department, Stanford Universityd. General Electric Company, New yorke. None of these

5. The Principle of unity of command impliesa. In union there is strengthb. Employees should receive orders from one superior only c. Group to be assigned the responsibility of commandingd. Command be equally distributed among horizontal line

e. None of these

6. Which of the following was not enunciated as a principle of management by Henry Fayola. Division of workb. Planning and Organizationc. Authority and responsibilityd. Espirit de corpse. None of these

7. A Plan is a determined course of action. The first major step in the process isa. Developing premisesb. Stating organizational objectivesc. Developing plans

d. Putting plans into actione. None of these

8. Which of the statements given below regarding decision making is false?a .It is a continuous processb. It implies a choicec. It is an intellectual activityd. Decision making is identical with problem solvinge. None of these

9. Which of the following statements about span of management is false?a. A manager cannot supervise the activities of an unlimited number of peopleb. Span of management directly affects the number of management levels in the organization

c. The capacity and the ability of the executive have absolutely no role in determining the span ofmanagementd. Higher the degree of decentralization, larger can the span of management bee. None of these

10. Line organization is most suitable wherea. Business is carried on large scaleb. Methods of operations are complexc. Where expertise of specialist is requiredd. All of these


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e. None of these

11. Managerial authority denotesa. Right to act or direct the action of other in attainment of organizational goalsb. Right to give orders and power to extract obediencec. Supreme coordinating powerd. All of thesee. None of these

12. Which of the following statements is false?a. Authority and responsibility co-existb. Responsibility can be delegatedc. Accountability arise out responsibilityd. Authority is the Supreme coordinating powere. None of these

13. Decentralization is (as an organization concept)a. Delegation of actual performance of workb. Physical or geographical dispersal of its activitiesc. Delegation of decision making

d. All of thesee. None of these

14. Personnel functions is aa. Line functionb. Staff functionsc. Can be either line or staffd. Neither line nor staffe. None of these

15. All of the following statements regarding manpower planning are true excepta. Manpower planning is merely forecasting of demand and supply of humans resourcesb. planning of Manpower is a continuous process

c. Manpower plans may be formal or informald. Manpower planning is a vital managerial functione. None of these

16. Job description impliesa. Personal capacities and inclinations deemed necessary for successful job performance.b. Written statement of the main duties and responsibilities which job entailsc. Process that ensures that right kind of people at the right placed at the right time do thing for whichthey are economically most usefuld. None of these

17 .An individual who systematically develops a subordinatesabilities through intensive tutoring is namedas

a. Mentorb. Managerc. supervisord. Peere. None of these

18. A plan for allowing each employee to determine the make-up of his or her fringe benefit Package isa. Compensationb. Salary administrationc. Cafeteria compensation


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d. Loaninge. None of these

19. Which of the following statement regarding the communication is falsea. communication is perceptionb. communication is expectationc. communication provides for feedback mechanismd. communication and information are synonymouse. None of these

20. Open door policy is an aid toa. Downward communicationb. upward communicationc. Both a & bd. None of these


Q.1. Select the best option/answer and fill in appropriate box on the answer sheet. (20)

1.Health and wellness is a currently important work-related value

(a) true(b) false

2.The cognitive component of an attitude consists of beliefs and values antecedents(a) true(b) false

3.The effective component of an attitude is a specific feeling regarding the personal impact of theantecedents.(a) True(b) false

4.An attitude results in intended behavior.

(a) true(b) false

5. Job satisfaction is closely related to organizational commitment and job environment.(a) true(b) false

6.A loyalty response to low job satisfaction occurs when an employee passively waits for conditions toimprove because of a trend in the organization.(a) true(b) false

7.Expectancy can have both positive and negative results for a manager.

(a) true(b) false

8.The earliest studies of leadership tended to focus on leader behavior(a) true(b) false

9.Transactional leadership includes charisma.(a) true(b) false


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10.Leader behaviors for high performance work teams tend to be charismatic.(a) true(b) false

11.One major power that bureaucracy has is simply its staying power.(a) true(b) false

12.Implement is the most hands-onfacet of public administration.(a) true(b) false

13.A geographical information system is a location-related computer programme data and maps for avariety of uses.(a) true(b) false

14. The most powerful reason for the growing recognition of the global economy is(a) the growth of international trade groupings and pacts.

(b) that more people are working domestically for foreign employees..(c) that the major cities of the western world are culturally heterogeneous.(d) that domestic organization are feeling the impact of international competition.

15. The learned and shared ways of thinking and doing things found among members of a society isknown as:(a) Parochialism(b) Culture shock(c) Culture(d) Ethnocentrism(e) Domestic multiculturalism

16. Each of the following is a popular dimension of culture except:

(a) Language(b) Use of space(c) Religion(d) Individualism(e) Time orientation

17. To help combat selective perception, a manager should:(a) View the situation as others view it(b) Give more performance feedback to subordinates(c) Spend more time helping subordinates learn job skills(d) Gather additional opinions about a situation from others(e) Increase feedback to subordinates and train them personally

18. Assigning personal attributes to other individuals is known as:(a) Stereotyping(b) The halo effect(c) Selective perception(d) Projection(e) Expectancy

19. The key elements of the communication process include all but which of the following:(a) An interpreter(b) A receiver


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(c) A source(d) Feedback(e) Noise

20. Nonverbal communication is:(a) The acknowledgment of a message and a response to its reception.(b) Communication through physical gesture(c) The same as noise(d) Anything that interferes with the effectiveness of the communication attempt(e) Often unimportant during interviews.


Q1. Select the best option / answer and fill in the appropriate box on the Answer Sheet. (20).

(i). The difference between public administration and business administration is :(a) amount of political and legal constraints on decision making(b) the emphasis on efficiency(c) management structure and processes(d) no difference between public administration and business administration(e) None of these

(ii) The emphasis of the politics-administration dichotomy is on:(a) the focus or "what" of public administration(b) the actors or "who" of public administration(c) the span or "when" of public administration(d) the locus or "where" of public administration(e) None of these

(iii) Gulick and Urwick's POSDCORB anagram was:(a) reference to the locus of public administration(b) a listing of when to utilize public administration(c) an expression of administrative principles to follow(d) a means of identifying the problem associate with bureaucracy

(e) None of these

(iv) The three components that compromise publicness and privateness in society are:(a) bureaucracy, consistancy and budget(b) administration, management and organization(c) execution, regulation and structure(d) agency, access, interest(e) None of these

(v) Simon refuted the administrative(a) revealing the administrative principles(b) showing that for every principle there is a counter-principle(c) explaining that administrative principles can only be used in complex organization

(d) relating that administrative principles always allowed for rational descisions(e) None of these

(vi) The New Public Management can be best described as:(a) public administration in 21st century(b) bureaucratic model of public administration(c) application of business practices in public management(d) a mechanism for improving service delivery(e) None of these


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(vii) The open model for organization is referred to as:(a) hierarchical and militaristic(b) technological and anti-humanistic(c) restrictive and rigid(d) collegial and competitive(e) None of these

(viii) The aim of Taylor's scientific management was to:(a) stress individual accomplishment over organizational yield(b) reduce production and increase morale(c) improve organizational efficiency and production'(d) alter machinery to lessen burden on the labour force(e) None of these

(xi) In comparison to managers of private organizations, public bureaucrats must:(a) spend less time on external environment and more time on internal management(b) spend more time on external environment and less time on internal management(c) spend less time on both external environment and internal management(d) spend more time on both external environment and internal management(e) None of these

(x) Supervision as a mechanism of control over subordinates has been founded to be:(a) the most effective mechanism of control(b) as effective as input control(c) the less effective mechanism of control(d) more effective than behavior control(e) None of these

(xi) According to Weber, the three types of leadership are:(a) charismatic, traditional, legal/rational(b) titular, controllers, organizers(c) institutionalists, specialists, hybrids(d) charismatic, institutionalists, specialists

(e) None of these

(xii) In terms of public administration, one defines a system:(a) according to the organizational structure(b) according to the administrative effectiveness(c) according to problem one wishes to resolve(d) according to the amount of resource available(e) None of these

(xiii) The advantage of systems approach is:(a) it allows us to disregard the differences in world views(b) it allows means and ends to remain ambiguous(c) it forces us to delineate the differences and similarities in world views and improves efficiency

and effectiveness(d) it allows for new and fresh solutions to old and distressing problems(e) None of these

(xiv) According to humanists approach, the management scientist's system is incomplete because:(a) it fails to factor in the variable of environment and instability(b) it fails to account for the variable of uniquely human qualities such as genius and despair(c) it gives too much emphasis to the variable of uniquely human qualities(d) it does not consider quantifiable and measureable variables(e) None of these


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(xv) The purpose of decision tree is:(a) decision alternatives(b) cost analysis(c) project coordination(d) time analysis(e) None of these

(xvi) the line-item budget covers:(a) inputs only(b) outputs only(c) inputs and outputs(d) neither inputs nor outputs(e) None of these

(xvii) Performance budget covers:(a) inputs only(b) outputs only(c) neither inputs nor outputs(d) inputs and outputs

(e) None of these

(xviii) The essential difference between management-by-objectives and planning-programming-budgetingis that:(a) MBO does not necessarily focus on inputs(b) MBO does not necessarily focus on outputs(b) MBO does not necessarily focus on alternatives(b) MBO necessarily focus on alternatives(e) None of these

(xix) one of the salient feature of civil service system of Pakistan is:(a) preference for contract appointments(b) preference for professionals

(c) preference for generalists(d) preference for doctors(e) None of these

(xx) Public goods differ from private goods on the basis of:(a) price(b) delivery(c) exclusion(d) public interest(e) None of these


(i) Public administration refers to:

(a) A process(b) A discipline(c) A field of study(d) All of these

(ii) The concept of separationbetween politics and public administrationwas first propounded by:(a) Aristotle(b) Woodrow Wilson(c) Karl Marx(d) Machiavelli


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(iii) The famous fourteen principles of organization were given by:(a) Plato(b) Henri Fayol(c) Fredrick Taylor(d) Max Weber

(iv) The author of the famous essay The Study of Administrationwas:(a) Dwight Waldo(b) Woodrow Wilson(c) Fredrick Taylor(d) Margaret Thatcher

(v) Span of control means:(a) Tenure on a post(b) Geographical jurisdiction(c) Power to control others(d) Number of subordinates under a superior

(vi) Job description relates to appointing a suitable person on a job:

(a) True(b) False

(vii) Job specification defines the parameters of the job to be done:(a) True(b) False

(viii) Proper job analysis is based on:(a) Job description(b) Job specification(c) Both of these(d) None of these

(ix) Bureaucracy refers to:(a) Red tape(b) The totality of government officials(c) A specific set of structural arrangement(d) All of these

(x) The mnemonic POSDCORB for management was introduced by:(a) James Mooney(b) Adam Smith(c) Luther Gulick(d) None of these

(xi) The famous Hawthorne experiments were conducted by:

(a) Elton Mayo(b) Abraham H. Maslow(c) Mark Twain(d) None of these

(xii) Hawthorneeffectrefers to increase in productivity because of:(a) Good physical working environment(b) Secure job(c) Presence of observers(d) None of these


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(xiii) Maslowshighest need in his hierarchyof needswas:(a) Love or affiliation needs(b) Selfactualization needs(c) Esteem needs(d) None of these

(xiv) Theaverage human being inherently dislikes work(a) An assumption of theory X(b) An assumption of theory Y(c) An assumption of theory Z(d) None of these

(xv) Spoils system refers to:(a) Management through objectives(b) Public sector concept of staffing(c) Awarding jobs to political supporters(d) None of these

(xvi) Deficit financing is:

(a) Excess revenues(b) Excess expenditures(c) Both of these(d) None of these

(xvii) Performance audit is used as a comparison between:(a) Actual expenditure and booked expenditure(b) Revenue collected and potential revenue(c) Activities of an organization with the assigned objectives(d) None of these

(xviii) A whistle blower in an organization is a person:(a) Who reveals bad things about his department to the public

(b) Who is a good singer(c) Who is assigned security duties(d) None of these

(xix) The budget cycle is:(a) The duration for which it is applicable(b) The process through which it has to go(c) The time frame of preparation(d) None of these

(xx) Group dynamics refers to:(a) Nature of a group(b) Development of a group

(c) Interrelationship of a group(d) All of these

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Accounting & Management MSQS CSS.docx