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UGC NET Economics Mock Test
UGC NET Economics Mock Test by Economics Harbour
Instructions:
The test will be for 2 hours and has 100 questions, all of which are compulsory.
Please note, you will be allowed to attempt this test ONCE.
Do fill in the contact details to avail different discount options which will be disclosed with the end of this test.
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1.
Which of the following minerals is exported from India?
Iron ore
Manganese
Mica
All of the above
2.
What can be said about the relationship between the degree of urbanisation and per capita income?
Both are independent
They are positively associated
They are negatively associated
None of the above
3.
Which of the following is NOT a correct finding of the various studies on black money in India?
The amount of black money has been growing in relative terms as a percentage of GNP.
The rate of growth of black income generation is faster than the rate of growth of GNP.
The amount of black money has not been growing in absolute terms.
None of the above
4.
Rangarajan admits that in India the price effect of money supply is
Equal to the output effect.
Greater than the output effect
Lower than the output effect
None of the above
5.
Technical progress is capital-using if, along a line on which the K/L ratio is constant, the MRS(LK)
Decreases
Remains constant
Increases
Initially increases, then decreases.
6.
The amount of labour supply at a point of time depends on
Labour force participation rate
Number of hours people are willing to work.
Amount of effort workers put forth while at work.
All of the above
7.
The problem of cyclical unemployment in developed economies originates from
Demand side
Supply side
Investment side
Savings side
8.
Supply curve of labour slopes
Downward from right to left
Upward from right to left
Downward from left to right
None of the above
9.
Which one of the following is NOT true about the factors determining the price elasticity?
Higher the proportion of income spent on a good, higher is likely to be the price elasticity of that good.
More the number of substitutes of a good more elastic is the demand for that good.
Less the number of substitutes of a good more elastic is the demand of that good.
Longer the time-period more elastic is the demand.
10.
The Net Terms of Trade improves if
Exports prices rise more quickly than import prices.
Export prices fall more slowly than import prices.
Both A and B
Import prices remain constant
11.
Natural resources of a country influence
Economic growth
Economic structure
Both A and B
The agricultural policy
12.
What is the impact on price and quantity in a particular market if there is an increase in consumers’ income?
Price falls, quantity demanded and supplied increases.
Price rises, quantity demanded and supplied increases.
Price remains the same, quantity demanded and supplied increases.
None of the above
13.
Which of the following is NOT a demand-pull factor of inflation?
Deficit financing and increase in money supply.
Mounting government expenditure.
Administered prices
Role of black money
14.
The profits of the entrepreneur will be maximum when he is employing such a number of units of a factor that its marginal revenue product equals its
Marginal physical product
Marginal factor cost
Value of marginal product
None of the above
15.
In which of the following regions has the production of iron ore begun only in recent years?
Naomandi
Keonjhar
Bailadilla mines of Bastar District
None of the above
16.
When rent arises due to difference in productivity of different units of a factor, it is called
Scarcity rent
Variable rent
Differential rent
None of the above
17.
The theory of _____ surplus treats the origin of profit to the entrepreneurial abilities.
Differential
Economic
Dynamic
None of the above
18.
Which of the following is true at equilibrium in monopolistic competition?
Price is greater than marginal cost.
Average revenue is greater than marginal revenue.
Both A and B
Average revenue is equal to marginal revenue
19.
Sacrifice, discomfort, toil and pain involved in supplying the factors of production by their owners is called
Money cost
Opportunity cost
Private cost
Real cost
20.
The second highest densely populated state of the country is
Bihar
West Bengal
Uttar Pradesh
Maharashtra
21.
Which one of the following is true about the relation between normal price and market price?
Market price tends to be equal to normal price.
Market price is greater than normal price.
Market price is equal to normal price.
Market price is lesser than normal price.
22.
Birth rates are higher in states which have
Higher infant mortality rates
Lower infant mortality rates
Higher child mortality rates
Lower child mortality rates
23.
The supply curve of the firm may be derived by the points of intersections of its
MR curve with successive demand
MC curves with a particular demand curve
MC curve with successive demand curves
None of the above
24.
The minimum possible price which just covers the marginal cost of the product paid by the consumer is called
Market cost
Nominal cost
Opportunity cost
Prevailing cost
25.
If there are constant returns to scale, there would always be
Constant returns to a factor
Diminishing returns to a factor
Increasing returns to a factor
None of the above
26.
Which type of countries have the highest degree of overall equality in the distribution of income?
Capitalist
Socialist
Democratic
None of the above
27.
Non-traditional export items like engineering goods are of
High income elasticity
High price elasticity
Both A and B
Low income elasticity
28.
In which phase of population growth of India, did the compound annual growth rate nearly double the growth rate of the previous year?
First phase (1891-1921)
Second phase (1921-1951)
Third phase (1951-1981)
Fourth phase (1981-2001)
29.
______ will prevail when workers are not organised into trade unions.
Monopsony
Monopoly
Duopoly
Oligopoly
30.
Constituents of gross profit are
Depreciation fund
Monopoly profit
Implicit costs
All of the above
31.
With increase in average cost, marginal cost rises at a
Slower rate
Faster rate
Similar rate
Does not rise
32.
By which of the following factors during the First Plan Period was the balance of payments affected?
Korean War boom
American recession of 1953
Favourable monsoon at home
All of the above
33.
When was the National Water Policy adopted?
1972
1987
1986
1982
34.
When the quantity of only one input is increased, other inputs held fixed, the change in physical output is called
Returns to a factor
Returns to a scale
Returns to capital
None of the above
35.
Which of the following is an economic factor affecting cropping patterns?
Price and income maximisation
Farm size
Insurance against risk
All of the above
36.
Perfectly elastic demand curve is
Parallel to X-axis
Parallel to Y-axis
Inclined at 45 degrees to X-axis
None of the above
37.
When did the Committee of Experts on Unemployment under the chairmanship of B. Bhagwati, submit its report to the Government?
1982
1968
1976
1973
38.
Occupational structure in a country depends on
Development of productive forces
Specialisation level of per capita income
Availability of natural resources.
All of the above
39.
Which of the following is an implication of the imposition of ceiling below the equilibrium price?
Shortages in the market
Problem of allocation of limited supplies among large number of consumers
Black marketing
All of the above
40.
The minimum price at which the sellers refuse to supply the good at all and store it with themselves is known as
Nominal price
Market price
Reserve price
Prevailing price
41.
Work effort increases with the rise in the wage rate when the
Substitution effect is equal to the income effect
Substitution effect is greater than the income effect
Substitution effect is less than the income effect
None of the above
42.
The state with the highest sex ratio is
Haryana
Kerala
Punjab
Manipur
43.
Which of the following conditions show optimality in long run equilibrium?
The output is produced at the minimum feasible cost.
Plants are used at full capacity.
Firms only earn normal profits.
All of the above
44.
Addition to the total physical output by application of an additional unit of a variable factor of production is called
Marginal physical product
Marginal revenue product
Value of marginal product
None of the above
45.
The equilibrium of the monopolist will never be at the level of output at which the elasticity of the demand curve or the average revenue curve is
Less than one
Greater than one
Equal to one
None of the above
46.
What determines the type and scale of industry that can be developed in a country?
The type of natural resources available.
The distribution of natural resources.
The quantities of natural resources
All of the above
47.
When was the Central Soil Conservation Board set up by the Union Government?
1949
1963
1953
1976
48.
A firm which will be the first to leave the industry if price falls is called
Marginal firm
Average firm
Weak firm
None of the above
49.
Which method was followed by the Direct Tax Enquiry Committee for estimating black incomes?
Edgar L. Feige’s method
Kaldor’s method
Minhas’ method
None of the above
50.
If marginal cost is less than marginal revenue, it pays the firm to
Cut its output
Expand its output
Keep its output same as before
Keep its price same as before
51.
Which of the following is a cause for inflationary pressure in the 90s?
Higher fiscal deficit
Sharp rise in reserve money
Supply-demand imbalances
All of the above
52.
Shut down point for a firm is a situation where its
Average revenue = average cost
Average revenue > Average cost
Average revenue = Average variable cost
Average revenue > Average variable cost
53.
Extraction of coal in India is not always profitable because
Quality of coal is inferior
Labour is very expensive
Coal resources lie too deep
All of the above
54.
Afforestation of catchment areas of rivers is essential for
Moderating floods
Improving the fertility of the soil.
Avoidance of erosion of land.
All of the above
55.
If MRS between two goods X and Y is equal for all consumers, then this is the marginal condition for a Pareto optimal
Distribution of commodities among consumers
allocation of factors among firm producers.
Composition of output
None of the above
56.
During which decade did the country see the sharpest decline of 11 points in the sex ratio?
1951-61
1961-71
1971-81
1981-91
57.
When did the Government launch a new agricultural strategy in the form of Intensive Agriculture District Programme?
1958
1959
1961
1962
58.
When a firm experiences external economies, its cost curves
Shift downwards
Shift upwards
Remain unchanged
None of the above
59.
Which of the following is true at the long run equilibrium of a perfectly competitive firm?
Long run marginal cost curve cuts the long run average cost curve at its minimum point.
Short run marginal cost curve cuts short run average cost curve at its minimum.
Both A and B
Long run fixed cost curve cuts the short run average cost curve.
60.
The expenditure on advertising, sales promotion, public relations, etc. is called
Advertisement cost
Surplus cost
Selling cost
Variable cost
61.
Who estimated the number of persons below the poverty line on the basis of an average calorie intake of 2,250 per capita per day?
Mr. P.D. Ojha
Dr. P.K. Bandhan
Dr. B.S. Minhas
Mr. Montek Ahluwalia
62.
Which of the following is NOT a true feature of the work force of India?
Low participation rate of the workforce.
Lower ratio of females in the workforce.
Lower work-participation rates in the rural areas compared to that in the urban areas.
Increase in the female participation in developed states.
63.
What type of rate is the Current Daily Status Unemployment rate?
Time rate
Person rate
Both A and B
Wage rate
64.
What is the reason behind declining importance of natural resources with respect to economic development?
Income elasticity of demand for agricultural products is relatively low.
Continuous improvements in technology permit substitution of labour and capital for land and other natural resources.
Both A and B
Dependence of the industries on imports.
65.
India’s exports were almost stagnant during the first 15 years of planning because of
High cost of production of our export goods.
Dominance of traditional goods in exports.
Rise in price in India
All of the above
66.
Ricardo regards rent as
Differential rent
Scarcity rent
Economic rent
Variable rent
67.
Actual earning minus transfer earning is equal to
Differential rent
Scarcity rent
Economic rent
None of the above
68.
Price elasticity at the mid point of a linear demand curve is
1
0
Infinity
-1
69.
Kaldor estimated the size of black income as the difference between the estimated non-salary income above the exemption limit and the
Actual salary income assessed to tax
Actual non-salary income assessed to tax
Actual non-salary income not assessed to tax
None of the above
70.
Which term refers to a system of political and social relations between two countries, of which one is the ruler and the other is the ruled?
Ruling Autocracy
Colonialism
Imperialism
None of the above
71.
Over a period of time, the effect of increase in the money supply percolates into different sectors of the economy, resulting in the rise of demand and the price level, which is known as
Supply effect of money
Percolation effect
Relevant effect
All of the above
72.
Which of the following is true about a monopolist at equilibrium output level?
Marginal cost is equal to marginal revenue
Price is equal to average revenue
Average revenue is greater than marginal revenue.
All of the above
73.
The price of goods in rival supply tend to move in ______ direction.
Same
Opposite
Random
None of the above
74.
Which state has the lowest density of population?
Nagaland
Tripura
Arunachal Pradesh
Sikkim
75.
In long run competitive equilibrium under differential cost conditions, the intra-marginal firm earns
Normal profit
More than normal profit
Abnormal profit
Profit less than normal profit
76.
In developed countries, which form does unemployment generally assume?
Keynesian involuntary unemployment
Temporary frictional unemployment
Both A and B
Disguised unemployment
77.
Which of the following is a consequence of inflationary price rise?
Increase in economic inequalities
Obstacle in development
Adverse effect on the balance of payments
All of the above
78.
In which type of unemployment, the marginal productivity of labour is zero, so that the removal of excess labour would not reduce total output?
Underemployment
Disguised unemployment
Open unemployment
Structural unemployment
79.
The classification of income according to factoral service rendered by different factors of production, is called
Personal distribution
Factorial distribution
Functional distribution
None of the above
80.
Which of the following is NOT true about the Forest Policy of India?
It looks upon forest as a vital element for achieving a congenial natural environment for the economy.
Its development is regarded as a helpful factor for the progress of the rural economy.
Its objective is to ensure the conservation of the existing forests.
The policy emphasises on the association of agriculture with forestry.
81.
Labour-deepening technical progress increases Marginal Product of Labour
Faster than Marginal Product of capital
Slower than Marginal Product of capital
At the same rate as the Marginal Product of capital
None of the above
82.
On the eve of planning, the rise in imports in India was largely due to
Pent up demand of the war
Shortage of food
Rise in the imports of machinery and equipment
All of the above
83.
Effect of an increase in the fixed cost on the output and price of a firm in the short run under perfect competition is that
Output rises, price falls
Output remains same, price rises.
Output falls, price remains same
Output as well as price remains same
84.
The point where the LMC curve intersects LAC curve, there the slope of the LAC curve is
Vertical to X-axis
Parallel to X-Axis
Parallel to Y-axis
Inclined at 45 degrees
85.
______ refers to the case of a product which is demanded for two or more purposes.
Rival demand
Associated demand
Binary demand
Bilateral demand
86.
The locus of points defined by different levels of output of a firm A and his rival B, which yield to A the same level of profit, is called
An isoprofit curve for firm A
An isoprofit curve for firm B
An isoprofit curve for both firm A and firm B
None of the above
87.
All the goods and services which a worker gets directly or indirectly for services rendered by him are called
Gross wages
Real wages
Nominal wages
Total wages
88.
After independence when did the imports of foodgrains decline for the first time?
During the First Plan period
During the Second Plan Period
During the Third Plan period
During the Fourth Plan period
89.
If we want to find price-elasticity at a point on a non-linear demand curve, we have to
Draw a new tangent at that point
Find arc elasticity between any two points near to that point.
Draw a secant at that point.
None of the above
90.
The cause of degradation of irrigated lands is
Rise in sub-soil water level
The development of saline soils
Waterlogging
All of the above
91.
A situation in which it is impossible to make any one better-off without making someone worse-off is said to be
Social optimal
Welfare optimal
Pareto optimal
None of the above
92.
Parallel economy is referred to as
Unsanctioned economy
Unaccounted economy
Subterranean economy
All of the above
93.
Which type of unemployment is associated with the inadequacy of productive capacity to create enough jobs for all those able and willing to work?
Disguised unemployment
Structural unemployment
Educated unemployment
Underemployment
94.
In the long run, under perfect competition price of the factor is equal to
Marginal revenue product
Average revenue product
Both A and B
Marginal physical product
95.
A comparison of the levels of living of the top 5-10 percentage with the bottom 5-10 percentage of the population reflects
The absolute standard of poverty
The relative standard of poverty
The comprehensive standard of poverty
The comparative standard of poverty
96.
Which concept provides the most appropriate measure of unemployment?
The Usual Status rate concept
The Current Weekly Status rate concept
The Current Daily Status rate
None of the above
97.
Monopoly equilibrium can be reached when
Marginal cost is rising
Marginal cost is remaining constant
Marginal cost is falling
All of the above
98.
Which one of the following is NOT an exception to the Law of Demand?
Giffen goods
Goods of social distinction
Inferior goods
Demonstration effect
99.
Which objective was stressed by both National Forest Policy Resolutions of 1952 and 1988?
To bring at least a third of the land area under forests.
To increase the forest reserved area.
To reduce the agriculture land area
All of the above
100.
If the slope of Average Cost Curve is positive then
MC
MC>AC
MC=AC
MC=0
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