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UGC NET Economics Previous Year Papers – 1

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1. 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:
2. Capital gains means
3. According to Mercantilists, trade is a
4. Prebisch-Singer Hypothesis relates to
5. The relationship described by the Expectations-Augmented Phillips Curve is correct in which of the following?
6. 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
7. If marginal propensity to import is 0.1 and the marginal propensity to consume is 0.7, the value of income multiplier will be
8. Assertion: In Solow's growth model under equilibrium conditions, capital-labour ratio does not change.
Reason: Substitution between capital and labour is possible.
9. In Solow's growth model, the output per capita is a function of
10. Non Accelerating Inflation Rate of Unemployment (NAIRU) means
11. Market failure can occur because of
12. 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?
13. 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?
14. Who made a statement that "Inflation is everywhere and always a monetary phenomenon"?
15. 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?
16. 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
17. Assertion: Devaluation results in expenditure switching in an economy.
Reason: Devaluation alters the composition of the current account of the balance of payments.
18. 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?
19. 'The absorption approach' of analysing balance of payments was formulated by
20. 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
21. Identify the correct statement about the relationship between total fertility rate and gross reproduction rate.
22. Dusenberry was of the opinion that less developed countries will have serious and adverse effect on balance of payment due to
23. Which one of the following committees recommended to establish the National Bank for Agriculture and Rural Development?
24. Which of the following is likely to be most inflationary in its impact?
25. Which of the following is/are true for National Action Plan for Climate Change?
26. Which method can help in obtaining a welfare improvement if externalities exist?
27. Which amongst the following is a correct description of inverse demand function?
p = price, D = Demand and y = income
28. Simplex method of solving Linear Programming problems was developed by
29. Income tax is generally based on the principle of
30. In the last decade, which one among the following sectors has attracted the highest FDI inflows in India?
31. Which of the following statements is correct?
32. Leibenstein in his critical minimum effort thesis treats population as a factor that is
33. 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.
34. For the function Q = A. K (raise to the power α) . L (raise to the power β), which of the following is correct?
35. In a multiple linear regression with 4 independent variables, the overall regression's significance is to be tested. Which test would be used?
36. 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.
37. 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?
38. 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?
39. As on 31st March 2017, external debt of India was in which of the following range as a percentage of GDP?
40. Which of the following would cause Rupee to depreciate against U.S. Dollar, other things being equal?
41. What is the nature of equilibrium in the IS-LM model?
42. Which of the following statements about India's balance of payments is not correct?
43. Which of the following is the cause of disequilibrium between warranted rate of growth and actual rate of growth in the Harrod model?
44. 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
45. Which of the following statements about the AK model (Y = AK) of growth is false?
46. In the long period, which one of the following curves would aptly represent the time path of population for a developing economy?
47. Which among the following economists can be classified as strong advocate of protectionist policy of trade?
48. If marginal propensity to consume = average propensity to consume for all levels of income then the corresponding consumption function will be
49. For the capitalist economy, the primary objective of the New Classical Economics is to explain which of the following?
50. There is incomplete specialisation in production when country faces
51. Which among the following statements is correct?
52. Which amongst the following pairs is not correctly matched?
53. Who argued that Keynes' theory of equilibrium with involuntary unemployment is a special case of the general equilibrium model, augmented to include money?
54. 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
55. In the short run, which of the following costs must continuously decrease as output increases?
56. According to Friedman, Quantity theory of Money is the theory of
57. 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
58. Which of the following is true for demand side vicious circle of poverty?
59. Given the demand function of a consumer D = 10-2p, the consumer's surplus at price = 2 is
60. Palma ratio is a measure of
61. When the marginal cost is equal to average cost, the slope of the average cost is
62. A country can have an increased surplus in its balance of trade as a result of
63. 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

64. Assertion: The production possibility frontier can be a straight line.
Reason: The factors are not specialised and can be substituted at no extra cost.
65. Maximum social advantage is achieved when
66. The Benefit Theory of allocation of tax burden was given by
67. 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
68. 'Menu costs' in relation to inflation refers to
69. Which of the following goods is covered under GST as on July 1, 2017?
70. 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:
71. Which of the following is not the correct feature for the absolute convergence to hold good?
72. In the context of doubling of farmers' income objective, which of the following is not correct?
73. 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
74. Which of the following is a capital receipt in the government budget?
75. Which of the schemes is not a scheme for the upliftment of women in India?
76. 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.
77. Gilt-edged market means
78. When an information asymmetry is observed after an agreement is obtained between individuals, it is called
79. 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
80. Which of the following is portrayed in the population pyramid of a country?
81. Assertion: International trade along the lines of comparative advantage improves the allocative efficiency of existing resources.
Reason: International trade is an engine of growth.
82. Which among the following is not the feature of J.E. Meade's model?
83. If export price increases by 5 per cent and import prices by 20 per cent, the commodity terms of trade is
84. 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?
85. Which amongst the following would be most effective in mitigating the effect of externalities?
86. New Keynesians use which of the following to explain price and wage stickyness?
87. The first fundamental theorem of Welfare economics requires
88. Which of the following growth models assume neutral technical progress?
89. Which amongst the following is not correctly matched with regard to balance of payment account?
90. If in a distribution, mean is 40, mode is 60 and standard deviation is 10, then the coefficient of skewness will be
91. Which of the following is a condition of viability and technological feasibility of Leontief's static system?
92. Which of the following is often referred to as the 'hedonic price' method for valuing environmental assets?
93. "Workers must own the capital to which their savings has given rise.' This is an important assumption of the growth model developed by
94. 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
95. 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
96. A firm in monopolistic competition advertises in order to
97. Which of the following will be true for both monopoly and monopolistic competition in the short run?
98. Which of the following is not true for perfect competition?
99. Statutory incidence of a tax deals with
100. An increase in which of the following would be most likely to increase long run growth in developing countries?