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UGC NET Economics Previous Year Papers – 1

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1. According to neo-classical theory of distribution, constancy in the wage share in national income would come about only when the elasticity of factor substitution
2. An increase in which of the following would be most likely to increase long run growth in developing countries?
3. Capital gains means
4. Which of the following is/are true for National Action Plan for Climate Change?
5. Dusenberry was of the opinion that less developed countries will have serious and adverse effect on balance of payment due to
6. Match List 1: Concept with List 2: Economist
a. Profit as a dynamic surplus (i) J. Schumpeter
b. Profit as reward for innovation (ii) M. Kalecki
c. Profit as reward for uncertainty bearing (iii) F.H. Knight
d. Profits arise due to monopoly power enjoyed by the producer (iv) J.B. Clark
Answer in the way which matches the order 
a b c d
7. According to Mercantilists, trade is a
8. Which of the following is likely to be most inflationary in its impact?
9. 'The absorption approach' of analysing balance of payments was formulated by
10. Maximum social advantage is achieved when
11. In the short run, which of the following costs must continuously decrease as output increases?
12. Prebisch-Singer Hypothesis relates to
13. Generalised least square method of estimation will not be suitable for dealing with which of the following problems
a. Autocorrelated disturbances
b. Heteroscedastic disturbances
c. Multicollinearity
d. Errors in variables
14. Which amongst the following pairs is not correctly matched?
15. Identify the correct statement about the relationship between total fertility rate and gross reproduction rate.
16. Income tax is generally based on the principle of
17. Consider the following statements:
a) Effective demand in the market is the demand for a product or service which occurs when purchasers are constrained in a different market. 
b) Notional demand is the demand that occurs when purchasers are not constrained in any market.
Which of the above statements is/are correct?
18. A country can have an increased surplus in its balance of trade as a result of
19. Consider the following matrix which describes the respective strategies and the corresponding pay-offs of firms A and B operating in a duopoly:
                                                                             Firm B
                                                        Advertise                         Don't Advertise
                   Advertise                        11,6                                           16,0
Firm A
                    Don't Advertise            7,9                                             20,2
Which of the following statements is/are true for the above game?
a. Firm A has no dominant strategy
b. Firm B has no dominant strategy
c. The game has a Nash equilibrium
d. Neither Firm A nor Firm B has a dominant strategy

20. Which of the following is often referred to as the 'hedonic price' method for valuing environmental assets?
21. When an information asymmetry is observed after an agreement is obtained between individuals, it is called
22. If in a distribution, mean is 40, mode is 60 and standard deviation is 10, then the coefficient of skewness will be
23. Which of the following is a condition of viability and technological feasibility of Leontief's static system?
24. In the long period, which one of the following curves would aptly represent the time path of population for a developing economy?
25. Palma ratio is a measure of
26. The first fundamental theorem of Welfare economics requires
27. Which of the schemes is not a scheme for the upliftment of women in India?
28. Non Accelerating Inflation Rate of Unemployment (NAIRU) means
29. For the function Q = A. K (raise to the power α) . L (raise to the power β), which of the following is correct?
30. Which amongst the following would be most effective in mitigating the effect of externalities?
31. Which of the following statements about the AK model (Y = AK) of growth is false?
32. If marginal propensity to import is 0.1 and the marginal propensity to consume is 0.7, the value of income multiplier will be
33. Assertion: In Solow's growth model under equilibrium conditions, capital-labour ratio does not change.
Reason: Substitution between capital and labour is possible.
34. The share of agriculture in the GDP of India has declined over the years. Which of the following is not a correct reason for this?
35. Arrange the following books in chronological order of their publication. 
a. The Affluent Society
b. Asian Drama
c. The General Theory of Employment, Interest and Money
d. Development as Freedom
36. "Workers must own the capital to which their savings has given rise.' This is an important assumption of the growth model developed by
37. If marginal propensity to consume = average propensity to consume for all levels of income then the corresponding consumption function will be
38. In the context of doubling of farmers' income objective, which of the following is not correct?
39. In the context of the 'twin balance sheet problem' in India, consider the following statements:
a. Over leveraged corporate debt
b. High Non-Performing Assets of nationalised banks
c. High fiscal deficit
Select the correct answer from codes below
40. Which of the following goods is covered under GST as on July 1, 2017?
41. As per Census 2011, rank the following states in descending order of degree of urbanisation.
a. Tamil Nadu
b. Maharashtra
c. Goa
d. Punjab
Select the correct answer from the codes below:
42. In a multiple linear regression with 4 independent variables, the overall regression's significance is to be tested. Which test would be used?
43. Which of the following growth models assume neutral technical progress?
44. A firm in monopolistic competition advertises in order to
45. Which of the following statements is/are true?
a. a common resource is rival and non-excludable.
b. a public good is non-rival and non-excludable. 
Select the correct answers from the code given below
46. Which among the following economists can be classified as strong advocate of protectionist policy of trade?
47. For the capitalist economy, the primary objective of the New Classical Economics is to explain which of the following?
48. As on 31st March 2017, external debt of India was in which of the following range as a percentage of GDP?
49. According to the Economic Survey 2017-18, the Indian economy is becoming more formalised. This is indicated by which of the following shifts? Select the correct answer from the codes given below
a. The introduction of GST has brought more firms in the indirect tax net.
b. After demonetisation, a significant increase has taken place in the number of individuals filing income tax returns.
c. An increase in savings in the formal financial sector.
50. After the price change, the price line moves outwards on the X-Axis while the origin on Y-axis remains the same. According to the new equilibrium, the consumer now purchases more of the good labelled on Y-axis and lesser of the good labelled on x-axis. Imagine the diagram and state what is true for the good labelled on X-axis?
51. Given the demand function of a consumer D = 10-2p, the consumer's surplus at price = 2 is
52. The theory in which trade cycle is generated due to excess of actual over the desired investment has been given by who amongst the following?
53. Which one of the following committees recommended to establish the National Bank for Agriculture and Rural Development?
54. Consider the following statements:
a. 'Liquidity trap' is a situation when people refer to hold money rather than investing it.
b. 'Liquidity preference' is the situation when people prefer to invest money rather than hold it.
c. 'Liquidity crunch' is a situation of short supply of money in the money market.
d. 'Credit crunch' is a short supply of money in the loan market. 
Select the correct statements using the code given below:
55. Which of the following is portrayed in the population pyramid of a country?
56. Which of the following statements are valid concerning a recursive system?
a. The parameters can be validly estimated using separate applications of OLS to each equation.
b. The independent variables may be correlated with the error terms in other equations.
57. Which of the following is not the correct feature for the absolute convergence to hold good?
58. Assertion: International trade along the lines of comparative advantage improves the allocative efficiency of existing resources.
Reason: International trade is an engine of growth.
59. Who made a statement that "Inflation is everywhere and always a monetary phenomenon"?
60. Which of the following is not true for perfect competition?
61. What is the nature of equilibrium in the IS-LM model?
62. Which of the following is true for demand side vicious circle of poverty?
63. Which of the following is the cause of disequilibrium between warranted rate of growth and actual rate of growth in the Harrod model?
64. The Benefit Theory of allocation of tax burden was given by
65. In the context of oligopoly, consider the following statements
a. Cournot's equilibrium is a nash equilibrium.
b. Stackelberg equilibrium is a nash equilibrium.
Select the correst answer from the code given below
66. Gilt-edged market means
67. Market failure can occur because of
68. Assertion: The production possibility frontier can be a straight line.
Reason: The factors are not specialised and can be substituted at no extra cost.
69. In the last decade, which one among the following sectors has attracted the highest FDI inflows in India?
70. Assertion: External forces are of singular importance to economic activities of the developing states.
Reason: Relations between the dominant and dependent states are dynamic to reinforce unequal pattern.
71. New Keynesians use which of the following to explain price and wage stickyness?
72. If the producer pays the price of each input that is used is equal to its value of marginal product, then which one of the following does he earn?
73. Which of the following will be true for both monopoly and monopolistic competition in the short run?
74. If economic agents perfectly anticipate policy changes and if all prices, including wages are completely flexible, which one of the following will be true in the long run?
75. Which of the following statements about India's balance of payments is not correct?
76. Which of the following statements is correct?
77. According to Friedman, Quantity theory of Money is the theory of
78. 'Menu costs' in relation to inflation refers to
79. Which among the following statements is correct?
80. Simplex method of solving Linear Programming problems was developed by
81. Leibenstein in his critical minimum effort thesis treats population as a factor that is
82. Which of the following would cause Rupee to depreciate against U.S. Dollar, other things being equal?
83. Which amongst the following is a correct description of inverse demand function?
p = price, D = Demand and y = income
84. Let elasticity of demand for exports for a certain country be x and elasticity of demand for imports be m. Assume that the country devalues its currency. Its balance of payments  will almost certainly show an improvement if
85. In an economy, the GDP deflator is found to be 110 for the current year. If the GDP has registered an annual growth rate of 15 per cent in the same year, then the rate of growths of real GDP will be
86. If export price increases by 5 per cent and import prices by 20 per cent, the commodity terms of trade is
87. There is incomplete specialisation in production when country faces
88. Consider the following statements regarding Marginal Standing Facility (MSF).
a. MSF is on the line of existing LAF and is a part of it.
b. MSF is a costlier route than Repo.
c. MSF functions as the last resort for banks to borrow short term funds. 
d. MSF is linked to the net demand and time liabilities of the banks.
Choose the correct code
89. Which of the following statements are correct about the Finance Commission in India?
a. Finance Commission is constituted under Article 275 of the Constitution.
b. The provision for Grants-in-aid to the states are provided under Article 280. 
Which of the above statements is/are correct?
90. Which amongst the following is not correctly matched with regard to balance of payment account?
91. When the marginal cost is equal to average cost, the slope of the average cost is
92. If the sample survey of the same 100 households is conducted in a particular village, annually for five years, the data so collected will be described as
93. The relationship described by the Expectations-Augmented Phillips Curve is correct in which of the following?
94. Which of the following is a capital receipt in the government budget?
95. In Solow's growth model, the output per capita is a function of
96. Assertion: Devaluation results in expenditure switching in an economy.
Reason: Devaluation alters the composition of the current account of the balance of payments.
97. Which among the following is not the feature of J.E. Meade's model?
98. Statutory incidence of a tax deals with
99. Who argued that Keynes' theory of equilibrium with involuntary unemployment is a special case of the general equilibrium model, augmented to include money?
100. Which method can help in obtaining a welfare improvement if externalities exist?