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Tuesday, May 27, 2008

Operating System - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question
locate the transmission devices :-
Correct Answer
Network cards , Modems
Your Answer
Tapes , Network cards , Modems

True/False
Question
The user process issues a network I/O system call to send the character to the remote machine.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The process by which objects of one class acquire properties of objects of other class is called
Correct Answer
Inheritance
Your Answer
Inheritance

True/False
Question
Windows NT uses a message passing implementation for I/O.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
We need two separate modes of operation to protect the operating system and all other programs and their data from malfunctioning program. Which are those modes?
Correct Answer
User mode , Monitor mode
Your Answer
User mode , Monitor mode

Match The Following
Question
Correct Answer
Your Answer
Round-robin
Time quantum
Time quantum
First-come First-served
First come job
First come job
Shortest job
Shortest job
Shortest job
Priority
Highest priority job
Highest priority job

Multiple Choice Single Answer
Question
The segment is :-
Correct Answer
Logical entity
Your Answer
Logical entity

Multiple Choice Single Answer
Question
In UNIX, decisions regarding which process to swap in or out are made by whom?
Correct Answer
Swapper
Your Answer
Memory handler

Select The Blank
Question
A ________ is a client-server mechanism that enables an application on one machine to make a procedure call to code on another machine.
Correct Answer
Remote-procedure-call
Your Answer
Remote-procedure-call

Multiple Choice Single Answer
Question
When each process that wants to communicate must explicitly name the recipient or sender of the communication, then such communication is called as :-
Correct Answer
Direct communication
Your Answer
Indirect communication

Select The Blank
Question
In Linux, the allocator uses a ________ algorithm to keep track of available physical pages.
Correct Answer
Buddy-heap
Your Answer
Binary-search

Multiple Choice Single Answer
Question
What does the rows of the access matrix represents?
Correct Answer
Domains
Your Answer
Domains

Multiple Choice Single Answer
Question
Every change in policy requires a change in the underlying :-
Correct Answer
Mechanism
Your Answer
System

Select The Blank
Question
A ________ in NT is an object that provides a uniform interface for files, whether they are local or remote.
Correct Answer
Redirector
Your Answer
Domain

Multiple Choice Multiple Answer
Question
In Solaris 2, user-level threads may be:-
Correct Answer
Bound , Unbound
Your Answer
Bound , Unbound

Multiple Choice Multiple Answer
Question
An audit log records which things about an object ?
Correct Answer
Time , User , Type of access
Your Answer
Time , User , Type of access

Multiple Choice Multiple Answer
Question
One-to-one model is supported by following systems :-
Correct Answer
Windows NT , OS/2
Your Answer
OS/2 , Windows NT

Multiple Choice Multiple Answer
Question
To protect the system, we must take security measures at two levels, such as :-
Correct Answer
Physical level , Human level
Your Answer
Human level , Global level

Multiple Choice Single Answer
Question
If the process is waiting for some event to occur then it is said to be in :-
Correct Answer
Waiting state
Your Answer
Waiting state

Multiple Choice Single Answer
Question
A common representation for a discussion of process scheduling is a :-
Correct Answer
Queuing diagram
Your Answer
Process state diagram

True/False
Question
At Physical level, the site or sites containing the computer systems must be physically secured against armed or surreptitious entry by intruders.
Correct Answer
True
Your Answer
True

Select The Blank
Question
When you express user-system interaction, the scenario in the model is called ________
Correct Answer
Case model
Your Answer
Case model

True/False
Question
Data transfer from cache to CPU and registers is usually a software function, with little operating system intervention.
Correct Answer
False
Your Answer
True

True/False
Question
A file in NTFS is a simple byte stream as it is in MS-DOS or UNIX .
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Polymorphism means ability to take
Correct Answer
More than one form
Your Answer
More than one form

True/False
Question
Aging algorithm is based on LRU.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The virtual memory portion of the NT executive is the ________.
Correct Answer
Virtual memory manager
Your Answer
Virtual memory manager

Multiple Choice Multiple Answer
Question
There are two types of Message passing, they are :-
Correct Answer
Synchronous , Asynchronous
Your Answer
Synchronous , Asynchronous

Select The Blank
Question
Web servers use the ________ protocol to communicate with web browsers.
Correct Answer
http
Your Answer
http

Multiple Choice Multiple Answer
Question
The security of a system can be improved by two management techniques, such as :-
Correct Answer
Threat monitoring , Audit Log
Your Answer
Audit Log , Threat finding

Select The Blank
Question
The concept of protection levels and call gates were pioneered in MULTICS, where they were viewed as protection ________.
Correct Answer
Ring
Your Answer
Ring

True/False
Question
We say that a system is secure if its resources are used and accessed as intended under all circumstances.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The ________ controller is the controller at the computer end of the bus.
Correct Answer
Host
Your Answer
Cpu

Multiple Choice Multiple Answer
Question
In Linux, the paging system can be divided into sections, namely:-
Correct Answer
Policy algorithm , Paging mechanism
Your Answer
Policy algorithm , Paging mechanism

True/False
Question
Keyboard is a sharable device.
Correct Answer
True
Your Answer
False

True/False
Question
Transfer of data from disk to memory is usually controlled by the operating system.
Correct Answer
True
Your Answer
True

True/False
Question
Prototyping not only helps to build a quality design but also enables the designer to build the system decremantally.
Correct Answer
False
Your Answer
True

Select The Blank
Question
The UNIX system uses ________ to avoid the necessity of keeping its password list secret.
Correct Answer
Encryption
Your Answer
Encryption

Match The Following
Question
Correct Answer
Your Answer
Read-write devices
Disks
Disks
Dedicated devices
Tape
CD-ROM
Read-only devices
CD-ROM
Tape
Write-only devices
Graphics controller
Keyboard

Multiple Choice Single Answer
Question
A procedure call, request to execute a method is termed as
Correct Answer
Message
Your Answer
Message

Select The Blank
Question
Context switch times are highly dependent on ________ support.
Correct Answer
Hardware
Your Answer
Hardware

Multiple Choice Multiple Answer
Question
Two main jobs of a computer are :-
Correct Answer
I/O , Processing
Your Answer
I/O , Processing

Multiple Choice Single Answer
Question
The 4.3BSD operating system is the version of :-
Correct Answer
UNIX
Your Answer
UNIX

Multiple Choice Single Answer
Question
The number of processes that are completed per time unit is called as:-
Correct Answer
Throughput of system
Your Answer
Throughput of system

Multiple Choice Multiple Answer
Question
Once the I/O is started , which two courses of action are possible?
Correct Answer
Synchronous I/O , Asynchronous I/O , Simple I/O
Your Answer
Synchronous I/O , Asynchronous I/O

Multiple Choice Multiple Answer
Question
Security violations of the system can be categorized as :-
Correct Answer
Malicious , Accidental
Your Answer
Malicious , Accidental

Select The Blank
Question
A process migrates between the various ________ throughout its lifetime.
Correct Answer
Scheduling queues
Your Answer
Scheduling queues

Operating System - 5

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank
Question
static binding allows to hold certain properties fixed and rigid, whereas ________ binding allows object to behave as per conditions emerge.
Correct Answer
Dynamic
Your Answer
Dynamic

Multiple Choice Single Answer
Question
DVMA stands for :-
Correct Answer
Direct Virtual Memory Access
Your Answer
Direct Virtual Memory Access

True/False
Question
Since caches have limited size, cache management is an important design problem.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
C++ is basically a procedural language having extension of
Correct Answer
Object Oriented technology
Your Answer
Object Oriented technology

Multiple Choice Single Answer
Question
The system call checks the arguments given by the application, builds a data structure to convey the arguments to the kernel and then executes a special instruction called as :-
Correct Answer
Software interrupt
Your Answer
Software interrupt

Multiple Choice Single Answer
Question
A system consists of collection of :-
Correct Answer
Processes
Your Answer
Processes

Select The Blank
Question
A________ is a memory area that stores data while they are transferred between two devices or between a device and an application.
Correct Answer
Buffer
Your Answer
Buffer

Multiple Choice Multiple Answer
Question
Find out the human-interface devices :-
Correct Answer
Screen , Keyboard , Mouse
Your Answer
Screen , Keyboard , Mouse

Multiple Choice Single Answer
Question
A procedure body implementing an operation is termed as
Correct Answer
Method
Your Answer
Method

Select The Blank
Question
The designer of a program or system might leave a hole, or ________ , in the software that only he is capable of using.
Correct Answer
Trap door
Your Answer
Trap door

True/False
Question
The principle of polymorphism helps to extend and modify the system scope through appropriate messaging mechanism.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The Linux system is composed of three main bodies of code, in line with most traditional UNIX implementations. Which are :-
Correct Answer
Kernel , System libraries , System utilities
Your Answer
Kernel , System libraries , System utilities

Select The Blank
Question
Web servers use the ________ protocol to communicate with web browsers.
Correct Answer
http
Your Answer
http

Multiple Choice Single Answer
Question
The pure Object Oriented language is
Correct Answer
Java
Your Answer
Java

Multiple Choice Multiple Answer
Question
User level threads are generally :-
Correct Answer
Fast to create , Easy to manage
Your Answer
Fast to create , Easy to manage

True/False
Question
Switching the cpu to another process requires saving the state of the old process and loading the saved state for the new process.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The process by which objects of one class acquire properties of objects of other class is called
Correct Answer
Inheritance
Your Answer
Inheritance

Multiple Choice Single Answer
Question
In Object Oriented technology following expression is appropriate
Correct Answer
object=data+menthods
Your Answer
object=data+menthods

True/False
Question
A copy of inode is kept in main memory while a file is open.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The advantage of dynamic loading is
Correct Answer
Unused routine is never loaded , Useful when large amount of code are needed to handle infrequently occurring cases, such as error routines , It does not require special support from the operating system
Your Answer
It does not require special support from the operating system , Unused routine is never loaded , Useful when large amount of code are needed to handle infrequently occurring cases, such as error routines

Select The Blank
Question
OOSAD begins with identification of actors, what activities they perform and building ________ model for the function.
Correct Answer
Use-case
Your Answer
Use-case

Multiple Choice Single Answer
Question
If a class fruit has object mango, the relationship is expressed as :
Correct Answer
Fruit mango
Your Answer
Fruit mango

Multiple Choice Single Answer
Question
The class bird should have object
Correct Answer
Egale
Your Answer
Egale

Select The Blank
Question
The ________ controller is the controller at the computer end of the bus.
Correct Answer
Host
Your Answer
Host

Multiple Choice Single Answer
Question
The insulation of data from direct access by the program is known as :
Correct Answer
Data hiding
Your Answer
Data hiding

Multiple Choice Multiple Answer
Question
Liner address is divided into fields like :-
Correct Answer
Dir , Page , Offset
Your Answer
Dir , Page , Offset

Multiple Choice Single Answer
Question
Every change in policy requires a change in the underlying :-
Correct Answer
Mechanism
Your Answer
Mechanism

Multiple Choice Single Answer
Question
UNIX operating system is written mostly in :-
Correct Answer
C language
Your Answer
C language

Multiple Choice Single Answer
Question
In UNIX, a file is represented by an :-
Correct Answer
Inode
Your Answer
Inode

Select The Blank
Question
If paging is enabled, the liner address is interpreted as virtual address and mapped to the physical address using ________ table.
Correct Answer
Page
Your Answer
Page

Multiple Choice Multiple Answer
Question
What are the forms of malicious access?
Correct Answer
Unauthorized destruction of data , Unauthorized reading of data , Unauthorized modification of data
Your Answer
Unauthorized reading of data , Unauthorized modification of data , Unauthorized destruction of data

Multiple Choice Multiple Answer
Question
What are the components to memory management under Linux?
Correct Answer
Physical memory manager , Virtual memory manager
Your Answer
Physical memory manager , Virtual memory manager

Multiple Choice Single Answer
Question
IPC is particularly useful in a :-
Correct Answer
Distributed environment
Your Answer
Distributed environment

Select The Blank
Question
Context switch times are highly dependent on ________ support.
Correct Answer
Hardware
Your Answer
Hardware

Multiple Choice Multiple Answer
Question
kernel threads are supported by following operating systems :-
Correct Answer
Windows NT , Solaris , Digital UNIX
Your Answer
Windows NT , Solaris , Digital UNIX

Select The Blank
Question
A ________ in NT is an object that provides a uniform interface for files, whether they are local or remote.
Correct Answer
Redirector
Your Answer
Redirector

Multiple Choice Multiple Answer
Question
In a uniprocessor system, there is :-
Correct Answer
Single processor , Single running process
Your Answer
Single processor , Single running process

True/False
Question
The basic difference between SSAD life cycle models and OOSAD life cycle models is that one is evolutionary & iterative while the other is sequential in stages of analysis, design, coding, unit test, integrated test and system test.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Ready state
Process waiting for cpu
Process waiting for cpu
New state
Process created
Process created
Running state
Executing process
Executing process
Waiting state
Waiting process
Waiting process

Match The Following
Question
Correct Answer
Your Answer
Parent process
Child process
Child process
Foreground processes
Interactive processes
Interactive processes
Background processes
Batch processes
Batch processes
Light-Weight processes
Thread
Thread

Multiple Choice Single Answer
Question
In how many number of classes does the NRU algorithm divides pages, depending on the state of R and M?
Correct Answer
4
Your Answer
4

True/False
Question
When application issues a blocking I/O system call, the request is placed on the queue for that device.
Correct Answer
True
Your Answer
True

Select The Blank
Question
During execution, ________ register holds the sector for the data segment.
Correct Answer
DS
Your Answer
DS

True/False
Question
Banker's algorithm is a deadlock-avoidance algorithm.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Model of protection can be viewed abstractly as a matrix which is known as :-
Correct Answer
Access matrix
Your Answer
Access matrix

Multiple Choice Multiple Answer
Question
Kernel threads are generally :-
Correct Answer
Slower to create , Difficult to manage
Your Answer
Slower to create , Difficult to manage

Multiple Choice Multiple Answer
Question
One-to-one model is supported by following systems :-
Correct Answer
Windows NT , OS/2
Your Answer
Windows NT , OS/2

Operating System - 4

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question
Kernel threads are generally :-
Correct Answer
Slower to create , Difficult to manage
Your Answer
Slower to create , Difficult to manage

Select The Blank
Question
If the user-supplied password matches the password stored in the system, the system assumes that the user is ________.
Correct Answer
Legitimate
Your Answer
Legitimate

Multiple Choice Single Answer
Question
In general , the access matrix will be :-
Correct Answer
Sparse
Your Answer
Sparse

True/False
Question
Encryption is one common method of protecting information that is transmitted over unreliable links.
Correct Answer
True
Your Answer
False

Select The Blank
Question
A ________ is a full duplex connection between a device driver and a user-level process.
Correct Answer
Stream
Your Answer
Stream

Multiple Choice Single Answer
Question
In how many number of classes does the NRU algorithm divides pages, depending on the state of R and M?
Correct Answer
4
Your Answer
8

Select The Blank
Question
The Pentium page size is fixed at ________ KB.
Correct Answer
4
Your Answer
4

True/False
Question
Volatile storage loses its contents when the power to the device is removed.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The movement of information between levels of a storage hierarchy may be of two types depending on the hardware design and the controlling operating system software such as :-
Correct Answer
Explicit , Implicit
Your Answer
Explicit , Implicit

Select The Blank
Question
In queuing diagram, the arrow indicates the flow of ________ in the system.
Correct Answer
Processes
Your Answer
Processes

Multiple Choice Multiple Answer
Question
What are the forms of malicious access?
Correct Answer
Unauthorized reading of data , Unauthorized modification of data , Unauthorized destruction of data
Your Answer
Unauthorized reading of data , Unauthorized modification of data , Unauthorized destruction of data

Select The Blank
Question
A bit called the ________ , is added to the hardware of the computer to indicate the current mode.
Correct Answer
Mode bit
Your Answer
Mode bit

Multiple Choice Multiple Answer
Question
In Windows NT , kernel uses which two sets of objects?
Correct Answer
Dispatcher objects , Control objects
Your Answer
Dispatcher objects , Complex objects

Multiple Choice Single Answer
Question
The smallest addressable portion of a disk is :-
Correct Answer
Sector
Your Answer
Sector

True/False
Question
In FIFO algorithm the page removed from memory is the one which most recently used.
Correct Answer
False
Your Answer
False

Select The Blank
Question
A process is ________, if it cannot affect or be affected by the other processes executing in the system.
Correct Answer
Independent
Your Answer
Independent

Multiple Choice Multiple Answer
Question
Linux presents standard interfaces to whom?
Correct Answer
Programmer , User
Your Answer
Programmer , User , System administrator

Select The Blank
Question
The kernel module that controls a device is a ________ .
Correct Answer
Device driver
Your Answer
Device daemon

True/False
Question
Whenever a trap or interrupt occurs, the hardware switches from user mode to monitor mode.
Correct Answer
True
Your Answer
True

Select The Blank
Question
A ________ is a computer or router that sits between the trusted and untrusted systems.
Correct Answer
Firewall
Your Answer
Firewall

Multiple Choice Multiple Answer
Question
Find out the basic I/O hardware elements from the following :-
Correct Answer
Ports , Buses , Device controllers
Your Answer
Ports , Buses , Device controllers

True/False
Question
Object-oriented programming focuses on the integrated data and functionality as discrete units that have both knowledge (data) and capabilities (functions). Procedural programs, on the other hand, focus on functions and how they act on data.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
User mode
Mode bit 1
Mode bit 1
Serial port
Modem
Monitor mode
Parallel port
Printer
Printer
Privileged instructions
Monitor mode
Mode bit 0

True/False
Question
In segmentation the total address space can exceed the size of physical memory.
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
Question
Because of the concept of independent objects responding to messages, object orientation is a natural way to implement
Correct Answer
Event driven programming
Your Answer
Message deiven programming

Multiple Choice Single Answer
Question
In UNIX, everything below the system-call interface and above the physical hardware is the :-
Correct Answer
Kernel
Your Answer
I/O system

Multiple Choice Multiple Answer
Question
Different multithreading models available are :-
Correct Answer
Many-to-one model , One-to-one model , Many-to-many model
Your Answer
Many-to-one model , One-to-one model , Many-to-many model

Multiple Choice Multiple Answer
Question
An object type in windows NT is a system defined data type that has two things associated with it, which are they?
Correct Answer
Set of attributes , Set of methods
Your Answer
Object-type , Object-processing

Multiple Choice Multiple Answer
Question
When memory reference occurs in MULTICS the things which takes place are :-
Correct Answer
Segment number is used to find segment descriptor , Check is made to see if segment's page table is in memory , Page table entry for requested virtual page is examined , Offset is added to the page origin to give main memory address
Your Answer
Segment number is used to find segment descriptor , Check is made to see if segment's page table is in memory , Page table entry for requested virtual page is examined

Multiple Choice Single Answer
Question
The interval from the time of submission of a process to the time of completion is :-
Correct Answer
Turnaround time
Your Answer
Turnaround time

True/False
Question
Context switch times are highly dependent on hardware support.
Correct Answer
True
Your Answer
True

True/False
Question
Procedure and data can be distinguished and separately protected in segmentation
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Dispatcher functions involves the following :-
Correct Answer
Switching context , Switching to user mode
Your Answer
Switching context , Switching to user mode

Multiple Choice Single Answer
Question
The First version of UNIX was developed in 1969 by Ken Thompson of the Research Group at :-
Correct Answer
Bell Laboratories
Your Answer
Bell Laboratories

Multiple Choice Single Answer
Question
In Object Oriented technology following expression is appropriate
Correct Answer
object=data+menthods
Your Answer
object=data+menthods

Multiple Choice Single Answer
Question
A procedure body implementing an operation is termed as
Correct Answer
Method
Your Answer
Method

Select The Blank
Question
During execution, ________ register holds the sector for the code segment.
Correct Answer
CS
Your Answer
PS

True/False
Question
In some operating system, spooling is managed by a system daemon process.
Correct Answer
True
Your Answer
False

Select The Blank
Question
Each column in the access matrix can be implemented as an ________ for one object.
Correct Answer
Access list
Your Answer
Capability list

Multiple Choice Single Answer
Question
Policies for resource use may vary depending on the :-
Correct Answer
Application
Your Answer
System

Multiple Choice Multiple Answer
Question
A mailbox can be owned by :-
Correct Answer
Process , Operating system
Your Answer
User , Process , Program

Multiple Choice Single Answer
Question
The ready queue is generally stored as a :-
Correct Answer
Linked list
Your Answer
Queue

Select The Blank
Question
A ________ is region of fast memory that hold copies of data .
Correct Answer
Cache
Your Answer
Cache

Multiple Choice Multiple Answer
Question
What are the components to memory management under Linux?
Correct Answer
Physical memory manager , Virtual memory manager
Your Answer
Physical memory manager , Virtual memory manager

Match The Following
Question
Correct Answer
Your Answer
Bounded-buffer
Fixed size buffer
Fixed size buffer
Producer
Produces process
Produces process
Consumer
Consumes process
Consumes process
Unbounded-buffer
No limit on size of buffer
No limit on size of buffer

True/False
Question
The inode contains 15 pointers to the disk blocks containing the data contents of the file.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
When computer is powered up or rebooted, it needs to have an initial program to run. This initial program is known as :-
Correct Answer
Bootstrap program
Your Answer
Bootstrap program

Operating System - 3

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question
Firewall monitors and logs all connections.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Which of the following Operating System has no memory protection ?
Correct Answer
Windows 3.1
Your Answer
Windows 3.1

Multiple Choice Single Answer
Question
The main difference between structure and class is
Correct Answer
Structure does not support OOPS Class Supports OOPS.
Your Answer
Structure does not support OOPS Class Supports OOPS.

Multiple Choice Single Answer
Question
DMA stands for :-
Correct Answer
Direct Memory Access
Your Answer
Direct Memory Access

Multiple Choice Single Answer
Question
A major problem with the Priority scheduling algorithm is :-
Correct Answer
Starvation
Your Answer
Starvation

Multiple Choice Single Answer
Question
How big is a class object?
Correct Answer
Is as big as sum of the sizes of its member variables
Your Answer
Is as big as sum of the sizes of its member variables

Multiple Choice Single Answer
Question
The First version of UNIX was developed in 1969 by Ken Thompson of the Research Group at :-
Correct Answer
Bell Laboratories
Your Answer
Bell Laboratories

Multiple Choice Single Answer
Question
When computer is powered up or rebooted, it needs to have an initial program to run. This initial program is known as :-
Correct Answer
Bootstrap program
Your Answer
Bootstrap program

True/False
Question
Processes represents the executions of single programs whereas threads represent separate, concurrent execution contexts within a single process running a single program.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
If Dog derives from Mammal, and Mammal derives from Animal, then -
Correct Answer
Dog inherits Animal's functions and data
Your Answer
Dog inherits Animal's functions and data

Multiple Choice Single Answer
Question
The wraping up of data and methods in a single unit (class) is known as :
Correct Answer
Encapsulation
Your Answer
Encapsulation

True/False
Question
LRU algorithm can not be implemented without special hardware.
Correct Answer
True
Your Answer
False

Select The Blank
Question
The Solaris developers reimplemented the ________ using in-kernel thread to eliminate the context switch involved in moving each character between daemons and the kernel.
Correct Answer
Telnet daemon
Your Answer
Telnet daemon

Multiple Choice Single Answer
Question
All user processes are descendents of one original process, Which is that process?
Correct Answer
Init process
Your Answer
Init process

Select The Blank
Question
Terminals and line printers are ________ .
Correct Answer
Character devices
Your Answer
Character devices

Multiple Choice Multiple Answer
Question
Many-to-may model is supported by following operating systems :-
Correct Answer
Solaris , IRIX , Digital UNIX
Your Answer
Solaris , IRIX , Digital UNIX

Multiple Choice Multiple Answer
Question
find out the services provided by kernel related to I/O :
Correct Answer
I/O Scheduling , Buffering , Spooling
Your Answer
I/O Scheduling , Buffering , Spooling

Multiple Choice Single Answer
Question
The long-term scheduler controls the :-
Correct Answer
Degree of multiprogramming
Your Answer
Degree of multiprogramming

Select The Blank
Question
The concept of protection levels and call gates were pioneered in MULTICS, where they were viewed as protection ________.
Correct Answer
Ring
Your Answer
Ring

Multiple Choice Multiple Answer
Question
In Linux, the main objects defined by the virtual file system are :-
Correct Answer
Inode-object , File-object , File-system object
Your Answer
Inode-object , File-object , File-system object

Multiple Choice Single Answer
Question
Collection of similar datatypes is called as
Correct Answer
Array
Your Answer
Array

Multiple Choice Multiple Answer
Question
We need two separate modes of operation to protect the operating system and all other programs and their data from malfunctioning program. Which are those modes?
Correct Answer
User mode , Monitor mode
Your Answer
User mode , Monitor mode

Match The Following
Question
Correct Answer
Your Answer
Class Shape
Triangle, rectangle, circle, ellipse
Triangle, rectangle, circle, ellipse
Class Vehicle
Scooter, car, truck, tractor
Scooter, car, truck, tractor
Class Animal
Cat, dog, cow, tiger
Cat, dog, cow, tiger
Class Color
Red, yellow, blue, green
Red, yellow, blue, green

Select The Blank
Question
The virtual memory portion of the NT executive is the ________.
Correct Answer
Virtual memory manager
Your Answer
Virtual memory manager

True/False
Question
An asynchronous call returns immediately, without waiting for the I/O to complete.
Correct Answer
True
Your Answer
True

True/False
Question
Modem is a random-access device.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
A mailbox can be owned by :-
Correct Answer
Process , Operating system
Your Answer
Process , Operating system

Multiple Choice Multiple Answer
Question
The movement of information between levels of a storage hierarchy may be of two types depending on the hardware design and the controlling operating system software such as :-
Correct Answer
Explicit , Implicit
Your Answer
Explicit , Implicit

Select The Blank
Question
In windows NT, the ________ facility is used to pass requests and results between client and server processes within a single machine.
Correct Answer
Local-procedure-call
Your Answer
Remote-procedure-call

True/False
Question
A major security problem for operating system is authentication.
Correct Answer
True
Your Answer
True

True/False
Question
In a blocking system call, the application is moved from the OS's run queue to a wait queue.
Correct Answer
True
Your Answer
True

True/False
Question
Device speeds range from a few bytes per second to a few gigabytes per second.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Various storage systems available possesses which two characteristics?
Correct Answer
Volatile , Non-volatile
Your Answer
Volatile , Non-volatile

Match The Following
Question
Correct Answer
Your Answer
We can define abstract operation on abstract data
Data abstraction
Data abstraction
Process of sharing properties of the higher level object or class
Inheritance
Inheritance
Ability to inherit attributes and methods from 2 or more objects or classes
Multiple inheritance
Multiple inheritance
Ability to send a message to several objects and to allow receiving object to respond method specified on the object.
Ploymorphism
Ploymorphism

Multiple Choice Single Answer
Question
As process enter the system, they are put into :-
Correct Answer
Job queue
Your Answer
Job queue

Multiple Choice Multiple Answer
Question
The role of the operating system in computer I/O is to :-
Correct Answer
Manage I/O operation and devices , Control I/O operation and devices
Your Answer
Manage I/O operation and devices , Control I/O operation and devices

Select The Blank
Question
The ________ is a layer of software that hides hardware differences from upper levels of the operating system.
Correct Answer
Hardware abstraction layer
Your Answer
Hardware abstraction layer

Select The Blank
Question
A ________ is a computer or router that sits between the trusted and untrusted systems.
Correct Answer
Firewall
Your Answer
Firewall

Multiple Choice Multiple Answer
Question
The Moriss Internet Worm was made up of which of the two programs?
Correct Answer
Grappling hook program , Main program
Your Answer
Grappling hook program , Main program

Multiple Choice Multiple Answer
Question
In UNIX, a device is distinguished by two things, which are :-
Correct Answer
Device-class , Device number
Your Answer
Device-class , Device number

Multiple Choice Single Answer
Question
In general , the access matrix will be :-
Correct Answer
Sparse
Your Answer
Sparse

True/False
Question
Applications normally access block devices through a file system interface.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
User thread libraries include :-
Correct Answer
POSIX Pthreads , Mach C-threads , Solaris threads
Your Answer
POSIX Pthreads , Mach C-threads , Solaris threads

Select The Blank
Question
The positioning time sometimes called the ________.
Correct Answer
Random-access time
Your Answer
Random-access time

Multiple Choice Single Answer
Question
The concept of OOPS was first introduced in
Correct Answer
Simula Language
Your Answer
Simula Language

Select The Blank
Question
________ passwords prevent improper authentication due to password exposure.
Correct Answer
One-time
Your Answer
One-time

Multiple Choice Single Answer
Question
The linking of procedure call to the code to be executed in response to that call is referred as
Correct Answer
Binding
Your Answer
Binding

Operating System - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question
locate the transmission devices :-
Correct Answer
Network cards , Modems
Your Answer
Tapes , Network cards , Modems

True/False
Question
The user process issues a network I/O system call to send the character to the remote machine.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The process by which objects of one class acquire properties of objects of other class is called
Correct Answer
Inheritance
Your Answer
Inheritance

True/False
Question
Windows NT uses a message passing implementation for I/O.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
We need two separate modes of operation to protect the operating system and all other programs and their data from malfunctioning program. Which are those modes?
Correct Answer
User mode , Monitor mode
Your Answer
User mode , Monitor mode

Match The Following
Question
Correct Answer
Your Answer
Round-robin
Time quantum
Time quantum
First-come First-served
First come job
First come job
Shortest job
Shortest job
Shortest job
Priority
Highest priority job
Highest priority job

Multiple Choice Single Answer
Question
The segment is :-
Correct Answer
Logical entity
Your Answer
Logical entity

Multiple Choice Single Answer
Question
In UNIX, decisions regarding which process to swap in or out are made by whom?
Correct Answer
Swapper
Your Answer
Memory handler

Select The Blank
Question
A ________ is a client-server mechanism that enables an application on one machine to make a procedure call to code on another machine.
Correct Answer
Remote-procedure-call
Your Answer
Remote-procedure-call

Multiple Choice Single Answer
Question
When each process that wants to communicate must explicitly name the recipient or sender of the communication, then such communication is called as :-
Correct Answer
Direct communication
Your Answer
Indirect communication

Select The Blank
Question
In Linux, the allocator uses a ________ algorithm to keep track of available physical pages.
Correct Answer
Buddy-heap
Your Answer
Binary-search

Multiple Choice Single Answer
Question
What does the rows of the access matrix represents?
Correct Answer
Domains
Your Answer
Domains

Multiple Choice Single Answer
Question
Every change in policy requires a change in the underlying :-
Correct Answer
Mechanism
Your Answer
System

Select The Blank
Question
A ________ in NT is an object that provides a uniform interface for files, whether they are local or remote.
Correct Answer
Redirector
Your Answer
Domain

Multiple Choice Multiple Answer
Question
In Solaris 2, user-level threads may be:-
Correct Answer
Bound , Unbound
Your Answer
Bound , Unbound

Multiple Choice Multiple Answer
Question
An audit log records which things about an object ?
Correct Answer
Time , User , Type of access
Your Answer
Time , User , Type of access

Multiple Choice Multiple Answer
Question
One-to-one model is supported by following systems :-
Correct Answer
Windows NT , OS/2
Your Answer
OS/2 , Windows NT

Multiple Choice Multiple Answer
Question
To protect the system, we must take security measures at two levels, such as :-
Correct Answer
Physical level , Human level
Your Answer
Human level , Global level

Multiple Choice Single Answer
Question
If the process is waiting for some event to occur then it is said to be in :-
Correct Answer
Waiting state
Your Answer
Waiting state

Multiple Choice Single Answer
Question
A common representation for a discussion of process scheduling is a :-
Correct Answer
Queuing diagram
Your Answer
Process state diagram

True/False
Question
At Physical level, the site or sites containing the computer systems must be physically secured against armed or surreptitious entry by intruders.
Correct Answer
True
Your Answer
True

Select The Blank
Question
When you express user-system interaction, the scenario in the model is called ________
Correct Answer
Case model
Your Answer
Case model

True/False
Question
Data transfer from cache to CPU and registers is usually a software function, with little operating system intervention.
Correct Answer
False
Your Answer
True

True/False
Question
A file in NTFS is a simple byte stream as it is in MS-DOS or UNIX .
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Polymorphism means ability to take
Correct Answer
More than one form
Your Answer
More than one form

True/False
Question
Aging algorithm is based on LRU.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The virtual memory portion of the NT executive is the ________.
Correct Answer
Virtual memory manager
Your Answer
Virtual memory manager

Multiple Choice Multiple Answer
Question
There are two types of Message passing, they are :-
Correct Answer
Synchronous , Asynchronous
Your Answer
Synchronous , Asynchronous

Select The Blank
Question
Web servers use the ________ protocol to communicate with web browsers.
Correct Answer
http
Your Answer
http

Multiple Choice Multiple Answer
Question
The security of a system can be improved by two management techniques, such as :-
Correct Answer
Threat monitoring , Audit Log
Your Answer
Audit Log , Threat finding

Select The Blank
Question
The concept of protection levels and call gates were pioneered in MULTICS, where they were viewed as protection ________.
Correct Answer
Ring
Your Answer
Ring

True/False
Question
We say that a system is secure if its resources are used and accessed as intended under all circumstances.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The ________ controller is the controller at the computer end of the bus.
Correct Answer
Host
Your Answer
Cpu

Multiple Choice Multiple Answer
Question
In Linux, the paging system can be divided into sections, namely:-
Correct Answer
Policy algorithm , Paging mechanism
Your Answer
Policy algorithm , Paging mechanism

True/False
Question
Keyboard is a sharable device.
Correct Answer
True
Your Answer
False

True/False
Question
Transfer of data from disk to memory is usually controlled by the operating system.
Correct Answer
True
Your Answer
True

True/False
Question
Prototyping not only helps to build a quality design but also enables the designer to build the system decremantally.
Correct Answer
False
Your Answer
True

Select The Blank
Question
The UNIX system uses ________ to avoid the necessity of keeping its password list secret.
Correct Answer
Encryption
Your Answer
Encryption

Match The Following
Question
Correct Answer
Your Answer
Read-write devices
Disks
Disks
Dedicated devices
Tape
CD-ROM
Read-only devices
CD-ROM
Tape
Write-only devices
Graphics controller
Keyboard

Multiple Choice Single Answer
Question
A procedure call, request to execute a method is termed as
Correct Answer
Message
Your Answer
Message

Select The Blank
Question
Context switch times are highly dependent on ________ support.
Correct Answer
Hardware
Your Answer
Hardware

Multiple Choice Multiple Answer
Question
Two main jobs of a computer are :-
Correct Answer
I/O , Processing
Your Answer
I/O , Processing

Multiple Choice Single Answer
Question
The 4.3BSD operating system is the version of :-
Correct Answer
UNIX
Your Answer
UNIX

Multiple Choice Single Answer
Question
The number of processes that are completed per time unit is called as:-
Correct Answer
Throughput of system
Your Answer
Throughput of system

Multiple Choice Multiple Answer
Question
Once the I/O is started , which two courses of action are possible?
Correct Answer
Synchronous I/O , Asynchronous I/O , Simple I/O
Your Answer
Synchronous I/O , Asynchronous I/O

Multiple Choice Multiple Answer
Question
Security violations of the system can be categorized as :-
Correct Answer
Malicious , Accidental
Your Answer
Malicious , Accidental

Select The Blank
Question
A process migrates between the various ________ throughout its lifetime.
Correct Answer
Scheduling queues
Your Answer
Scheduling queues

Operating System - 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Multiple Choice Multiple Answer
Question
Various storage systems available possesses which two characteristics?
Correct Answer
Volatile , Non-volatile
Your Answer
Volatile , Non-volatile

Multiple Choice Multiple Answer
Question
Most CPUs have two interrupt request lines. Which are they?
Correct Answer
Maskable , Non maskable
Your Answer
Maskable , Non maskable

Select The Blank
Question
A ________ is a group of NT server machines that share a common security policy and user databases.
Correct Answer
Domain
Your Answer
Domain

Select The Blank
Question
An ________ is a dedicated, special purpose CPU found in mainframes and in other high-end systems.
Correct Answer
I/O channel
Your Answer
I/O channel

Multiple Choice Single Answer
Question
The CPU is allocated to the selected process by the :-
Correct Answer
Dispatcher
Your Answer
Dispatcher

Multiple Choice Single Answer
Question
In JAVA , the derived class is known as
Correct Answer
Subclass
Your Answer
Subclass

Select The Blank
Question
The Pentium supports four protection levels with ________ as least privileged level.
Correct Answer
3
Your Answer
3

Select The Blank
Question
________ of an object remains unchanged even though its state and properties change.
Correct Answer
Identity
Your Answer
Identity

True/False
Question
One way to achieve portability is to write software in standard version of high level language and to develop portable system and application software .
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Software may trigger an interrupt by executing a special operation called :-
Correct Answer
System call
Your Answer
System call

Multiple Choice Single Answer
Question
In Object Oriented technology following expression is appropriate
Correct Answer
object=data+menthods
Your Answer
object=data+menthods

Multiple Choice Multiple Answer
Question
The two versions of NT are :
Correct Answer
WindowsNT workstations , WindowsNT server
Your Answer
WindowsNT workstations , WindowsNT server

Match The Following
Question
Correct Answer
Your Answer
We can define abstract operation on abstract data
Data abstraction
Data abstraction
Process of sharing properties of the higher level object or class
Inheritance
Inheritance
Ability to inherit attributes and methods from 2 or more objects or classes
Multiple inheritance
Multiple inheritance
Ability to send a message to several objects and to allow receiving object to respond method specified on the object.
Ploymorphism
Ploymorphism

Select The Blank
Question
A________ is a memory area that stores data while they are transferred between two devices or between a device and an application.
Correct Answer
Buffer
Your Answer
Buffer

True/False
Question
In Public Key Encryption, each user has both a public and a private key.
Correct Answer
True
Your Answer
True

True/False
Question
Data transfer from cache to CPU and registers is usually a software function, with little operating system intervention.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Liner address is divided into fields like :-
Correct Answer
Dir , Page , Offset
Your Answer
Dir , Page , Offset

Multiple Choice Single Answer
Question
IPC is particularly useful in a :-
Correct Answer
Distributed environment
Your Answer
Internet environment

Multiple Choice Single Answer
Question
IPC provides a mechanism to allow processes to communicate and to synchronize their actions without sharing the same :-
Correct Answer
Address space
Your Answer
Semaphore

Multiple Choice Multiple Answer
Question
Supervisor mode is also known as :-
Correct Answer
Privileged mode , Monitor mode , System mode
Your Answer
System mode , Privileged mode , Monitor mode

Select The Blank
Question
Assuming that the segment is in memory and the offset is in range, the Pentium then adds the ________ bit base field in the descriptor to the offset to form linear address.
Correct Answer
32
Your Answer
32

Multiple Choice Multiple Answer
Question
In Solaris 2, user-level threads may be:-
Correct Answer
Bound , Unbound
Your Answer
Bound , Unbound

Multiple Choice Single Answer
Question
The concept of OOPS was first introduced in
Correct Answer
Simula Language
Your Answer
Simula Language

True/False
Question
At system boot time, the hardware starts in monitor mode.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The main difference between structure and class is
Correct Answer
Structure does not support OOPS Class Supports OOPS.
Your Answer
Structure does not support OOPS Class Supports OOPS.

Select The Blank
Question
A ________ controller is built into each disk drive.
Correct Answer
Disk
Your Answer
Disk

Multiple Choice Single Answer
Question
If a class fruit has object mango, the relationship is expressed as :
Correct Answer
Fruit mango
Your Answer
Fruit mango

True/False
Question
The hardware allows privileged instructions to be executed in only user mode.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
An object type in windows NT is a system defined data type that has two things associated with it, which are they?
Correct Answer
Set of attributes , Set of methods
Your Answer
Set of attributes , Set of methods

Select The Blank
Question
The kernel module that controls a device is a ________ .
Correct Answer
Device driver
Your Answer
Device driver

Multiple Choice Single Answer
Question
If process P and Q want to communicate, they must send messages to and receive messages from each other: Thus link established between two process is known as :-
Correct Answer
Communication link
Your Answer
Direct link

Multiple Choice Multiple Answer
Question
Dispatcher functions involves the following :-
Correct Answer
Switching context , Switching to user mode
Your Answer
Switching context , Switching to user mode

Select The Blank
Question
In windows NT, the ________ facility is used to pass requests and results between client and server processes within a single machine.
Correct Answer
Local-procedure-call
Your Answer
Local-procedure-call

True/False
Question
If some of the pages are shared with other process, the pages in memory and on the disk can only be released when the last process using them has terminated.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The Solaris developers reimplemented the ________ using in-kernel thread to eliminate the context switch involved in moving each character between daemons and the kernel.
Correct Answer
Telnet daemon
Your Answer
Context-switch daemon

Multiple Choice Single Answer
Question
Modern operating systems are :-
Correct Answer
Interrupt driven
Your Answer
Interrupt driven

Match The Following
Question
Correct Answer
Your Answer
Bounded-buffer
Fixed size buffer
Fixed size buffer
Producer
Produces process
Produces process
Consumer
Consumes process
Consumes process
Unbounded-buffer
No limit on size of buffer
No limit on size of buffer

Multiple Choice Multiple Answer
Question
In Linux, the paging system can be divided into sections, namely:-
Correct Answer
Policy algorithm , Paging mechanism
Your Answer
Policy algorithm , Paging mechanism

Multiple Choice Single Answer
Question
A process data section contains:-
Correct Answer
Global variables
Your Answer
Temporary data

True/False
Question
OOSAD approach is applicable only to stable systems.
Correct Answer
False
Your Answer
False

True/False
Question
Segment length may change during execution.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The movement of information between levels of a storage hierarchy may be of two types depending on the hardware design and the controlling operating system software such as :-
Correct Answer
Explicit , Implicit
Your Answer
Explicit , Implicit

Multiple Choice Single Answer
Question
Collection of similar datatypes is called as
Correct Answer
Array
Your Answer
Array

True/False
Question
At Human level, user must be screened carefully so that the chance of authorizing a user who then gives access to an intruder is reduced.
Correct Answer
True
Your Answer
True

True/False
Question
The user process issues a network I/O system call to send the character to the remote machine.
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Most computers have hardware clocks and timers that provide three basic functions, such as :-
Correct Answer
Give the current time , Give the elapsed time , Set a timer to trigger operation at certain time
Your Answer
Give the current time , Give the elapsed time , Set a timer to trigger operation at certain time

Multiple Choice Single Answer
Question
C++ is basically a procedural language having extension of
Correct Answer
Object Oriented technology
Your Answer
Object Oriented technology

Tuesday, May 13, 2008

Managerial Economics(For Batch 2003 and Earlier) - 3

Q5. Write notes on.
E. Fiscal Policy
Answer:
The ‘fiscal policy’ refers to the variations in taxation and public expenditure programmes by the government to achieve the predetermined objectives. Taxation is a measure of transferring funds from the private purses to the public coffers: it amounts to withdrawal of funds from the private use. Public expenditure, on the other hand, increases the flow of funds into the private economy. Thus, taxation reduces private disposable income and thereby the private expenditure, end public expenditure increases private incomes and thereby the private expenditure. Since tax-revenue and public expenditure form the two sides of the government budget, the taxation and public expenditure policies are also jointly called as ‘budgetary policy.’

Fiscal or budgetary policy is regarded as a powerful instrument of economic stabilization. The importance of fiscal policy as an instrument of economic stabilization. The importance of fiscal policy as an instrument of economic stabilization rests on the fact tat government activities in modern economies are greatly enlarged, and government tax-revenue and expenditure account for a considerable proportion of GNP, ranging from 10-25 per cent. Therefore, the government may affect the private economic activities to the same extent through variations in taxation and public expenditure. Besides, fiscal policy is considered to be more effective than monetary policy because the former directly affects the private decisions while the Latter does so indirectly. If fiscal policy of the government is so formulated that it during the period of expansion, it is known as ‘counter - cyclical fiscal policy’.

F. Monetary Policy
Answer:
Monetary policy refers to the programme of The Central Bank’s variations, in the total supply of money and cost of money to achieve certain predetermined objectives. One of the primary objectives of monetary policy is to achieve economic stability. The traditional instruments through which Central Bank carries out the monetary policies are: -

Quantitative Credit Control Measures such as open market operations, changes in bank rate and changes in statutory reserve ratios. Briefly speaking, open market operation by the Central Bank is the sale and purchase of government bonds, treasure bills, securities, etc, to and form the public. Bank rate is the rate at which Central Bank discounts the commercial banks’ bills of exchange or first class bill. The statutory reserve ratio is the proportion of commercial banks’ time and demand deposits, which they are required to deposit with the Central Bank or keep cash in- vault. All these instruments when operated by the Central Bank reduce (or enhance) directly and indirectly the credit creation capacity of the commercial banks and thereby reduce (or increase) the flow of funds from the banks to the public.

In addition these instruments, Central Banks use also various selective credit control measures and morel suasion. The selective credit controls are indented to control the credit flows to particular sectors without affecting the total credit, and also to change the composition of credit from undesirable to desirable pattern. Moral suasion is a persuasive method to convince the commercial banks to behave in accordance with the demand of the time and in the interest of the nation.

N. Distinction between Shares and Debentures
Answer:
Following are the points of differences between shares and debentures
Shares are part of the capital of the company. Debentures constitute loan to the company.
Shareholders are owners of the company, whereas debenture-holders are creditors of the company. Shareholders enjoy the rights like right to vote, right to attend general meetings etc. Usually these rights are not available to a debenture-holder.
As regards return of principal amount, the debenture-holders will have prior claim over shareholders, in the event of liquidation of a company.
Shareholders get dividend depending on the profitability of the company as a reward for their investment. In the event of no loss, the company may not declare dividend. In respect of debentures a fixed rate of interest is paid, irrespective of the profitability of the company. Payment of interest is mandatory.
Debentures are generally secured by creating a change on the assets of the company. Share capital being the risk capital, no security is offered to the shareholders.
Normally, debentures are issued for a limited period. That means debentures are redeemed during the life of the company. The share capital is the permanent source, is generally not returned to the shareholders during the lifetime of the company. This is subject to exception of redeemable preference shares or buy back of shares, which has been allowed by the companies act recently.

Limitation of cost-benefit analysis
Answer:
Cost - benefit analysis suffers from following limitations. : -

Critics have pointed out that this analysis is applicable in a partial equilibrium framework. However economists like AC. Harberger have shown that it can be applied to the general equilibrium analysis as well
The exactness and usefulness of this analysis is limited by the fact that it is based on the assumption that maximization of net wealth can ensure maximization of social welfare.
The cost benefit analysis is applied on another assumption that the existing pattern of distribution of income, distribution is given and has to be kept as it is. In fact, a change in income distribution does lead to a change in net wealth and further in social welfare.
Another limitation of the analysis is that it ignores the effect of diminishing marginal utility of additional wealth or income with every incremental dose of income or wealth being added to the existing total.
By assuming the positive correlation between wealth and welfare, the analysis assumes away all difficulties involved in the calculation of present and future cost as well as private and social cost.
Whatever applies to costs also applies to benefits i.e., calculation of present and future benefits as well as private and social benefits involves similar difficulties.

Managerial Economics(For Batch 2003 and Earlier) - 2

Q3. State and explain the Law of Variable Proportion.
Answer:
The law is about the production function (relationship between input and output) with one factor variable keeping quantity of other factor fixed i.e. by bringing about the changes in proportion between variable factor and the fixed factor. This law is very important in the economics and it is supported by empirical evidence particularly in the agricultural sector. The law of a\variable proportion is stated by various economists in the following manner:
By F.Benham: “As the proportion of one factor in a combination of factors is increased after a point, first the marginal and then the average product of that factor will diminish.”
By G.J. Stigler: “As equal increments one input are added, the inputs of other productive services being held constant, beyond a certain point the resulting increments of product will decrease i.e. the marginal product will diminish”.

Thus, it is observed that the law refers to three aspects:
Behavior of output
Quantity of one factor is increased keeping quantity of other factors fixed
Marginal product and average product eventually declines.

ASSUMPTIONS
1. The state of technology remains unchanged. If there is an any improvement in technology, then marginal and average product may rise instead of diminishing.
2. Alteration or variation in various factor proportion is done by varying some inputs i.e. some inputs must be kept fixed. This law does not apply when all factors are varied.
3. The law is also based on the assumption that there is a possibility of varying the proportions in which the various factors can be combined to produce a product. If factors were used in fixed proportion then the increase in one factor would not lead to any increase in the output that means the marginal product of a factor is zero.
There are three stages of law of variable proportion namely”
Stage of increasing returns where marginal productivity increases
Stage of decreasing returns where marginal productivity decreases
Stage of negative returns where marginal productivity becomes negative.

THREE STAES OF LAW OF VARIABLE PROPORTION
As shown in figure, X-axis is measured the quantity of the variable factor and on the Y-axis are measured the total product, average product and the marginal product. As the variable factor is increases, we can see its effect on the total, average and marginal productivity of a product changes. The behavior of these total, average and marginal products of the variable factor consequent on the increase in its amount can be seen through three stages which are as follows;



Stage-I
Increasing returns:
In this stage, total product to a point increases at an increasing rate. In the fig. From the origin to the point F, slope of the total TP is increasing. I.e. Upto point F total product curve increases at an increasing rate. The point F where the total product stops increasing at an increasing rate and starts increasing at a diminishing rate is called as the point of inflexion where corresponding vertically to this point of inflexion marginal productivity is maximum. Upto the point F marginal product MP rises. The average product curve rises through out the first stage Upto the point S. It is notable that the marginal product in this stage increases but in later part it starts declining but remains greater than the average product so that the average product continues to rise.

Stage-2
Stage of diminishing returns:
In this stage, the total product increases but at a stage both the marginal product and the average product of the variable factor are diminishing but are positive. At point M marginal product of the variable factor is zero, which is corresponding to the highest point H of the total product curve TP.

Stage-3
Stage of negative returns:
In this stage, the total product declines and therefore the TP curve slopes downward. As a result, marginal product of a variable factor is negative and the marginal product curve MP goes below X-axis. Average product curve therefore declines. The stage is called the stage of negative returns. Since the marginal product of the variable factor is negative during this stage.


EXPLANATION OF THE VARIOUS STAGES:

Increasing returns: As more and more units of variable factors are added to constant quantity of fixed quantity of fixed factor then fixed factor gets more intensively & effectively utilized and production increases at a rapid rate.
The variable factor i.e. no. Of workers increase as a firm expands its product. A worker contributes three pairs of whose per day to the firm’s output. The total product reaches seven pairs of shoes per day when the second worker contributes to the production. Fuller utilization of machine is possible due to the addition of a variable factor. One worker cannot take full advantage of the capabilities of machinery. When the second worker joint it is possible to use the full potential of the machinery. More over increasing returns can also be attributed to the principle of division of labor or specialization of work.

Diminishing returns: The peculiar features of this stage are that the marginal product falls through out the stage and finally touches to zero. Corresponding vertically is the point H, which is the highest point of the TP curve. Where stage two ends.

The third stage is set in by hiring 3rd worker who adds only 3 pairs of shoes per day as compared to 4v pairs per day added by the 2nd worker. Total product increases but the gain from third worker is not as great as gain from second worker. Once the point is reached at which variable factor is sufficient to ensure full utilization of fixed factor, then further increase in variable factor will cause MP as well as AP to fall because fixed factor has not become inadequate relative to the quantity of variable factors. In stage two-fixed factor is scarce as compared to variable factor. According to Joe Robinson famous economist, the factors of production are imperfect substitutes for on another, the stage of diminishing returns occurs. Fixed factor is scarce and variable factor is in abundance. If some factors are available that are perfect substitutes of fixed factor then fixed factor would not have remained scarce. The paucity of fixed could have been made up by such perfect substitutes. If one of the variable factors added to the fixed factor were perfect substitute deficiency of fixed could have been made up but elasticity of substitute between factors is not infinite, substitution is not possible and diminishing returns occur.

3. Negative returns: Under this stage, marginal product falls below “X” axis i.e. negative because total product starts falling. In this example this is set in by hiring 6th worker. The total product falls from 13 pairs of shoes per week to 12 pairs of shoes per week. The large number of variable factors impairs the efficiency of the fixed factor. The excessive variable factor as compared to less fixed factor results in a fall of total output. In such a situation, a reduction in the units of the variable factor will increase the total output.

Q4. Define ‘Business Cycle’. Explain various phases of business cycle.

Answer
Definition of A Business or Trade Cycle

The term “trade cycle” in economies refers to the wave-like fluctuations in the aggregate economic activity. Particularly in employment, output and income. In other words, trade cycles are ups and downs in economic activity. A trade cycle is defined in various ways by different economists. For instance, Mitchell defined trade cycle as a fluctuation in aggregate economic activity. According to Heberler, ‘The business cycle in the general sense may be defined as on alternation of periods of prosperity and depression, of good and bad trade.’

Keynes, points out that ‘A trade cycle is composed of periods of good trade characterized by rising prices and low unemployment percentages, altering with periods of bad trade characterized by tolling prices and high unemployment percentages.’ Keynes, thus, stresses two indices namely, prices and unemployment, for measuring the upswing and downswing of the business cycles.

PHASES OF BUSINESS CYCLES
The ups and downs in the economy are reflected by the fluctuations in aggregate economic magnitudes, such as. Production, investment, employment, prices, wages, bank credits. etc. The upward and downward movements in these magnitudes show different phases of a business cycle. Basically there are only two phases in a cycle, viz., prosperity and depression. But considering the intermediate stages between prosperity and depression, the various phases of trade cycle may be enumerated as follows: -
1) Expansion
2) Peak
3) Recession
4) Trough
5) Recovery and expansion.

The five phases of a business cycle have been presented in the figure below.

The figure showing phases of Business Cycle

1) Prosperity Expansion and Peak
The prosperity phase is characterized by rise in the national output, rise in consumer and capital expenditure rise in the level of employment. Inventories of both input and output increase. Debtors find it more and more convenient to pay off their debts. Bank advances grow rapidly even thought bank rate increases. There is general expansion of credit. Idle funds find their way to productive investment since stock prices increase due to increase in profitability and dividend. Purchasing power continues to flow in and out of all kinds of economic activities. So long as the conditions permit, the expansion continues, following the multiplier process.

In he later stages of prosperity, however inputs start falling short of their demand. Additional workers are hard to find. Hence additional workers can be obtained by bidding a wage rate higher than the prevailing rates. Labor market becomes seller’s market. A similar situation appears also in other input markets. Consequently, input prices increase rapidly leading to increase in cost at production. As a result. Prices increase and overtake the increase in output and employment. Cost of living increases at a rate relatively higher than the increase in household income. Hence consumers, particularly the wage earners and fixed income class. Review their consumption. Consumer’s resistance gets momentum. Actual demand stagnates or even decreases. The first and most pronounced impact falls on the demand for new houses, flats and apartments. Following this, demand for cement, iron and steel, construction-labor tends to halt, this trend subsequently appears in other durable goods industries like automobiles. refrigerators, furniture, etc. This marks reaching the Peak.

2) Turning- Point and Recession
Once the economy reaches the peak, increase in demand is halted. It even starts decreasing in some sectors, for the reason stated above. Producers, on the other band, unaware of this fact continue to maintain their existing levels of production and investment. As a result, a discrepancy between output supply and demand arises. The growth of discrepancy. Between supply and demand is so slow that it goes unnoticed for some time. But producers suddenly realize that their inventories are piling up. This situation might appear in a few industries at the first instance. But later it spreads to other industries also, initially, it might be taken as a problem arisen out of minor maladjustment. But, the persistence of the problem makes the producers believe that they have indulged in ‘over-investment’. Consequently, future investment plans are given up; orders placed for new equipments, raw materials and other inputs are cancelled. Replacement of worn-out capital is postponed. Demand for labor ceases to increase; rather. Temporary and casual workers are removed in a bid to bring demand and supply in balance. The cancellation of orders for the inputs by the producers of consumer goods creates a chain -reaction in the input market, Producers of capital goods and raw materials cancel their orders for their input. This is the turning point and the beginning of recession.

Since demand for inputs has decreased, input prices. E.g. wages, interest etc. show a gradual decline leading to a simultaneous decrease in the incomes of wage and interest earners, This ultimately causes demand recession, Oil the other band, producers lower down the price in order to get rid of their inventories and also to meet their obligations. Consumers in their turn expect a further decrease in price and hence postpone their purchases. As a result the discrepancy between demand and supply continues to grow. When this process gathers speed, it takes the form of irreversible recession. Investments start declining, the decline in investment leads to decline in Income and consumption. The process of reverse of (of negative) multiplier gets underway. (The process is exactly reverse of expansion). When investments are curtailed, production and employment decline resulting in further decline in demand for both consumer and capital goods. Borrowings for investment decreases; bank credit shrinks: share prices decrease; unemployment gets generated along with a fall in wage rates. At this stage, the process of recession is complete and the economy enters the phase of depression.

3) Depression and Trough
During the phase of depression, economic activities slide down their normal level, the growth rate becomes negative. The level of national income and expenditure declines rapidly. Prices of consumer and capital goods decline steadily. Workers lose their jobs. Debtors find it difficult to pay off their debts. Demand for bank credit reaches its low ebb and banks experience mounting of their cash balances. Investment in stock becomes less profitable and least attractive. At the depth of depression, all economic activities touch the bottom and the phase of trough is reached. Even the expenditure on maintenance is deferred in view of excess production capacity. Weaker firms are eliminated form the industries. At this point the process of depression is complete.

How is the process reversed? The factors reverse the downswing varies from cycle to cycle like factors responsible for business cycle vary form cycle to cycle. Generally, the process begins in the labor market. Because of widespread unemployment: workers offer to work at wages less than the prevailing rates. The producers anticipating better future try to maintain their capital stock and offer jobs to some workers here and there. They do so also because they feel encouraged by the halt in decrease in price in the trough phase. Consumers on their part expecting no further decline in price begin to spend on there postponed consumption and hence demand picks up, though gradually.

Besides, there is a self - correcting process within the price mechanism. When prices fall during recession the prices of raw materials and that of other inputs fall faster than the prices of finished products. Therefore, some profitability always remains there, which tends to increase after the trough. Hence the optimism generated in the stock market gets strengthened in the commodity market. Producers start replacing the worn - out capital and making - up the depleted capital stock, though cautiously and slowly. Consequently. Investment picks up and employment gradually increases, following this recovery in production and income, demand for both consumer and capital goods start increasing. Since banks have accumulated excess cash reserves, bank credit becomes easily available and at a lower rate. Speculative increase in prices gives indication of continued rise in levee. For all these reason the economic activities get accelerated. Due to increase in income and consumption. The process of multiplier gives further impetus to the economic activities, and the phase of recovery gets underway. The phase of depression comes to an end over time depending on the speed of recovery.

4) The Recovery
As the recovery gathers momentum, some firms plan additional investment, some undertake renovation programmes, some undertake both. These activities generate construction activities in both consumer and capital good sectors. Individuals who had postponed their plans to construct houses undertake it now, lest cost of construction mounts up. As a result, more and more reemployment is generated in the construction sector, as employment increases despite wage rates moving upward the total wage income increase at a rate higher than employment rate. Wage income rises, so does the consumption expenditure. Businessmen realize quick turn over and an increase in profitability. Hence, they speed up the production machinery.

Over a period, as the factors of production become more fully employed wages and other input prices move upward rapidly. Investors therefore, become discriminatory between alternative investments. As prices, wages and other factor - prices increase, a number of related developments begin to take place. Businessmen start increasing their inventories, consumers start buying more and more of durable goods and variety items. With this process catching up. The economy enters the phase of expansion and prosperity. The cycle is thus complete.

Managerial Economics(For Batch 2003 and Earlier) - 1

Q1. What is Managerial Economics? Explain the nature and scope of Managerial Economics.
Answer:
Managerial Economics generally refers to the integration of economic theory with business practice. While economics provides the tools which explain various concepts such as Demand, Supply, Price, Competition etc. Managerial Economics applies these tools to the management of business. Managerial Economics is also understood to refer to business economics or applied economics.

“Managerial Economics lies on the border line of management & economics. It is a hybrid of two disciplines and it is primarily an applied branch of knowledge.”

According to Prof. Spencer Sigelman,”Managerial Economics deals with integration of economics theory with business practice for the purpose of facilitating decision making and forward planning by management”.

According to Prof. Joel Dean,” The purpose of Managerial Economics is to show how economic analysis can be used in formulating business policies”.

Nature of Managerial Economics:

It is true that managerial economics aims at providing help in decision-making by firms. For this purpose, it draws heavily on the propositions of microeconomic theory. Note that microeconomics studies the phenomenon at the individual’s level: behavior of individual consumers, firms. The concepts of microeconomics used frequently in managerial economics are: (i) elasticity of demand ii) marginal cost (iii) marginal revenue (iv) market structures and their significance in pricing policies, etc. Some of these concepts however provide only the logical base and have to be modified in practice.

Microeconomics assists firms in forecasting. Note that macroeconomic theory studies the economy at the aggregative level and ignores the distinguishing features of individual observations. For example, macroeconomics indicates the relationship between (i) the magnitude of investment and the level of national income, (ii) the level of national income and the level of employment (iii) the level of consumption and the national income, etc. Therefore, the postulates of macroeconomics can be used to identify the level of demand at some future point in time, based on the relationship between the level of national income and the demand for a particular product. For example, there is a relationship between the level of national income and demand for electric motors. Also, the demand for durable goods such as refrigerators, air-conditioners, and motorcars depends upon the level of national income.

Managerial Economics is decidedly applied branch of knowledge. Therefore, the emphasis is laid on those propositions, which are likely to be useful to the management. The precision of a scientist is not motivating factor in research activity. Improvement in the quality of results is attempted provided the additional cost is not very high and the decision maker can wait. For example it may be possible to have more accurate data on the demand for the firm’s product by taking into consideration additional factors (explanatory variables). But this may not be attempted because the decision has to be made without delay. Besides, more accurate forecasts may not be justified on cost considerations.

Managerial Economics is prescriptive in nature and character. It recommends that it should be done under alternative conditions. For example, if the price of the synthetic yarn falls by 50 %, it may be desirable to increase its use in producing different types of textiles. Thus, managerial economics is one of the normative sciences and reflects upon the desirability or otherwise of the propositions. For example if the analysis suggests that the benefit-cost ratio of a large plant is less than that for a smaller plant and the benefit-cost ratio is used as the criterion for project appraisal it is recommended that the firm should not install a large plant. Contrast this with the positive sciences, which state the propositions without commenting upon what should be done. For example, if the distribution of income has become more uneven, it is stated without indicating what should be done to correct this phenomenon.

Managerial economics, to the extent that it uses economic thought, is a science, but it is an applied science, Economic thought uses deductive logic (if X is true, then Y is true). For example, if the triangles are congruent, their angles are equal. To have confidence in the findings, the propositions deduced are subjected to empirical verification. For example, empirical studies try to verify whether cost curves faced by a firm are really U-shaped as suggested by the theory. Furthermore, there is an attempt to generalize the propositions, which provide a predictive character. For example, empirical studies may suggest that for every 1% rise in expenditure on advertising, the demand for the product shall increase by 0.5%.

Scope of Managerial Economics:

The scope of Managerial Economics is so wide that it embraces almost all the problems & areas of the manager and the firm. It deals with demand analysis and forecasting, production function, cost analysis, inventory management advertising price system, resource allocation, capital budgeting etc.

1. Demand analysis and forecasting:
It analyses carefully and systematically the various types of demand which enable the manager to arrive at a reasonable estimate of demand for products of his company. He takes into account such concepts as income elasticity and cross elasticity.


2. Production Function
Resources are scarce and also have alternative uses. Inputs play a vital role in the economics of production. The factors of production, otherwise called inputs, may be combined in a particular way to yield the maximum output. Alternatively, when the price of inputs shoot up, a firm is forced to work out a combination of inputs so as to ensure that this combination becomes least cost combination.

3. Cost Analysis:
Determinants of cost. Methods of estimating costs, the relationship between cost & output, the forecast of cost and profit-these are very vital to a firm.

4. Inventory Management:
An inventory refers to stock of raw materials, which a firm keeps. Now the problem is how much of the inventory is ideal stock. If it is high, capital is unproductively feed up, which might, if the stock of inventory is reduced, be used for other productive purposes. On the other hand, if level of inventory is low, production will be hampered. Therefore, managerial economics will use such methods as ABC analysis, a simple simulation exercise and some mathematical models with a view to minimize the inventory cost.

5. Advertising
Advertising is an area which managerial economics embraces. While the copy, illustration. Etc. of an advertisement are the responsibility of those who get it ready for the press, the problems of cost, The methods of determining the total advertisement costs and budge, the measuring of the economic effects of advertising-these are the problems of the manager.

6. Price System
The central function of an enterprise is not only production but pricing as well. While the cost of production has to be taken into account while pricing a commodity, a complete knowledge of the price system is quite essential to determination of price. Pricing is actually guided by considerations of cost plus pricing and the policies of public enterprises.



7. Resources Allocation:
Scarce resources obviously have alternate uses. The aim of course, is to achieve optimization. For this purpose, some advanced tools, such as linear programming are used to arrive at the best course of action for a specified end.

8. Capital Budgeting:
Capital is scarce and it costs something. Now, the problem is how to arrive at the cost of capita: how to ensure that capital becomes rational: how to face Upto budgeting problems, how to ensure that capital becomes rational; how to face Upto budgeting problems, how to arrive at investment decisions under conditions of uncertainly; how to effect a cost-benefit analysis etc. Any manager cannot ignore these areas.

Q2. State and explain the law of demand. What are its exceptions?

Answer:
The law may be stated:”Other things being equal, the higher the price of a commodity, the smaller is the quantity demanded and lower the price, larger is the quantity demanded”. In other works, the demand for a commodity expands as the price falls and contracts as the price rises. Or briefly stated, the law of demand emphasizes that other things remaining unchanged, demand varies inversely with price.
The conventional law of demand, however, relates to the much simplified demand function:
D= f (P)
Where, D represents demand, P the price and f connotes a functional relationship. It, however, assumes that other determinants of demand are constant and only price is the variable and influencing factor. The relation between price and quantity of demand is usually an inverse or negative relation, indicating a larger quantity demanded at a lower price and a smaller quantity demanded at a higher price.

The law of demand is usually referred to the market demand. The law of demand can be illustrated with the help of a market demand schedule, thus, as the price of commodity decreases, the corresponding quantity demanded for that commodity increases and vice-versa.
Price of Commodity X (in Rs.) per unit Quantity Demanded per week
5 10
4 20
3 30
2 40
1 50
______________________________________________________________________

This table represents hypothetical demand schedule for commodity X. With a fall in priced at each stage, quantity demanded tends to rise. There is an inverse relationship between price and quantity demanded. Usually, economists draw a demand curve to give a pictorial presentation of law of demand. When the data of table are plotted graphically, a demand curve is drawn as shown in Fig.

Y Demand Curve

D






D

O X

Quantity Demanded of X

In this fig., DD is a downward sloping demand curve indicating an inverse relationship between price and quantity demanded.
From the given market demand-curve once can easily locate the market demand for a product at a given price. Further, the demand curve geometrically represents the mathematical demand function: Dx = f (Px)

Assumption of the law of Demand

The law of demand is based upon the following assumptions:

1. Tastes & preferences of consumer remain unchanged:
It is assured that the tastes & habits of a consumer remain unchanged. The demand curve is drawn on the basis of a particular level of tastes & preference. If it changes demand curve has to be redrawn. If the preference of a consumer changes he may demand more or less of a given commodity. For instance when a commodity becomes fashionable, consumption will increase, irrespective of price changes. In such a case the law of demand will not hold true.

2. Income remains the same:
When income changes the consumer’s scale of preference or choice usually becomes entirely different. With the increase in income, he may purchase more of a commodity at the same price. If the commodity is of inferior quality, he may replace it with a better variety at a higher price. Hence, stability of income through out the demand schedule is necessary.

3. The prices of other goods remain the same:
A change in the prices of substitutes and complementary goods may cause demand to shift. A consumer may shift from the consumption of present goods to its complementary or substitute goods due to its fall in the price. Thus the demand for tea will be affected by a fall in the price of coffee or sugar.

Exceptions to the Law of Demand

Generally, more of a commodity is demanded at a lower price & less of it is demanded at a higher price. However, under certain conditions the law of demand does not hold good. These are exceptions to the law of demand, which are as follows;

1) Conspicuous Consumption: There are certain commodities such as diamond jewellery, antique collections the possession of which is a matter of prestige. More of these commodities are purchased at a higher price & vice versa. While some goods are such the constant use of which become necessity of life. For example, in spite of the fact that the prices of television sets, refrigerator, washing machine etc. have been continuously raising their demand does not show any tendency to fall. These are the ‘supper sector’ goods.

2) Speculative markets: Households also act as speculators. In the speculative markets a rise of prices is frequently followed by large purchases & a fall of price by less purchases. Likewise, if price are expected to fall further, a reduced price may not be a sufficient incentive to buy more. For example: in the share market, a rise in the price of a specific share induces the speculators to buy large number of this share because they expect a further rise in the price of that share. Consequently, the demand for the share also rises. On the contrary, fall in the price of a specific share causes a fall in its demand.

3) Giften goods: Giften goods are special type of cheaper goods. Sir Robert Fifteen found that in the 19th century Ireland the people were so poor that they spent the major part of their income on potatoes & a small part on meat. Potato was cheap but meal was dear. When the price of potatoes rose, they had to economize on meat. To maintain the earlier level of consumption or to fill the resulting gap in food supply more potatoes had to be purchased. Thus, rise in the price of potatoes led to increased sales of potatoes. This is known as Giften effect. This effect is usually found in the case of cheap necessary foodstuffs. Bajra can also be considered as Giften good to which the law of demand does not apply.

4) The income effect: The demand curve may be affected by the income effect. If the income effect. If the income effect is positive we can expect a downward sloping curve. But, on the other hand, if the income effect is negative, particularly in case of inferior goods, the result may not be a downward sloping curve. If the total expenditure of the commodity is small, the income effect will have less implication on the demand curve & there will be an inverse relation between price and demand.

5) Emergencies: Emergencies like war, famine, floods etc. negate then operation of the law of demand, In anticipation of scarcity of goods, consumers increase their purchases & includes further price rise. Even at an increased price consumers are ready to buy more during such periods. On the other hand during depression no amount of falling price is sufficient inducement for consumers to demand more.

6) Change in fashion: A change in fashion & tastes affects demand for a commodity. When a narrow or thin metallic frame of spectacles replaces a broad plastic frame, reduction in the price of latter is not sufficient to clear the stocks. On the other hand, the demand for thin frame rises even at a higher price.

7) Ignorance: A consumer of one market may be ignorant about the prevailing prices in the other market. Thus he can end up in buying a commodity at a higher price. This is also true when the consumer is under impression that higher priced commodity is better in quality than low priced commodity which is necessarily not true. The law of demand also falls when an impulsive purchases is made without any calculation of price and usefulness of the product.

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