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UGC NET Economics September 2020, Mock 1

Economics Harbour: UGC NET Economics Mock Test Series (September 2020)

Instructions:

  1. 100 questions for 2 marks each
  2. No negative marking
  3. Total Time: 2 hours
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1.

Assertion: Stratified random sampling is often used for socio-economic surveys.


Reason: Social stratification is a social reality.

2.

Which one of the following is the correct description about the bank rate in the Indian money market?

3.

When inflationary expectations are added to the Phillips Curve, the non-accelerating inflation rate of unemployment is defined as that unemployment where the

4.

In a sample having 23 pairs of observations, the correlation coefficient is 0.52 and in another sample having 28 observations, the correlation coefficient is 0.71. Is there significant difference between the two sample coefficients?

5.

The major difference between Harrod-Domar and Solow models of growth lies in

6.

An increase in supply of a commodity causes

7.

Total utility of a commodity can be found by

8.

‘Open Market Operations’ refers to

9.

Which one of the following is correct regarding stabilisation and structural adjustment as two components of the new economic policy adoption in India?

10.

A consistency model for India’s Fourth Five Year Plan was developed by

11.

Which of the following is not an assumption of Harrod’s model of growth?

12.

What does Hedging mean?

13.

For economic development, Schumpeter gave importance to

14.

In the case of monopolistic competition

15.

According to Rostow, which is the transition stage?

16.

Lorenz is a

17.

Indian planning mechanism has been criticised by

18.

The basic difference between the ‘short run’ and the ‘long run’ is that

19.

The marginal propensity to consume measures the ratio of the

20.

Assertion: The market demand for an input is not the simple horizontal summation of the demand curves of individual firms.


Reason: As the price of the input falls all firms will seek to employ more of this factor and expand their output.

21.

In case of gold standard system, decrease in the value of currency with respect to gold is called

22.

Money is non-neutral because

23.

If the consumer price index decreased from 125 ten years ago to 100 for the current year, one could say that consumer prices

24.

A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to

25.

The Baumol-Tobin analysis suggests that

26.

Equilibrium amount of real planned investment is determined at the point where

27.

Mint parity theory is applicable only when countries are on

28.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

29.

Economies and diseconomies of scale explain why the

30.

The French Economist J.B. Say transformed the equality of total output and total spending into a law that can be expressed as follows

31.

Intellectual property rights regime is managed by

32.

Golden Age hypothesis is concerned with

33.

Keynes reasoned that consumer expenditure is most closely related to

34.

Income elasticity of demand will be zero when a given change in income brings about

35.

Golden Age hypothesis is concerned with

36.

Welfare is a/an

37.

In Cournot’s duopoly model there are two firms operating with

38.

Which of the following statements is true concerning the consumption function?

39.

Bring out the incorrect statement regarding India’s textile sector:

40.

Which among the following rural banks has been named after a mountain?

41.

Which of the following is not the assumption of Say’s law of markets?

42.

Major commercial banks of India were nationalised in

43.

In the liquidity trap

44.

Which one of the following schemes is not included in the Rashtriya Krishi Vikas Yojana?

45.

If marginal benefit is greater than marginal cost, a rational choice involves

46.

Assertion: Green Revolution benefitted only Punjab, Haryana and Western Uttar Pradesh.


Reason: Irrigation was necessary for the success of Green Revolution.

47.

According to United Nation, definition of natural resource is

48.

Economic development, as a concept is more relevant for

49.

Objective test of social welfare maximisation was devised by

50.

Demand-pull inflation is caused by

51.

Cutting the money supply by one-third is predicted by the quantity theory of money to cause

52.

Leontief tested his paradox theory for the USA for the year

53.

An autonomous investment rises, Keynesians expect increases in

54.

Unfair trade practices are included in

55.

Concept of disguised unemployment was introduced by

56.

The Keynesian theory of money demand emphasizes the importance of

57.

Increase in capital stock between two periods of time is called

58.

Assertion: The New Industrial Policy was announced on July 24, 1991.


Reason: The New Industrial Policy was announced by the V.P. Singh Government.

59.

Which of the following is the simplest to measure?

60.

Flexible exchange rate is based on the concept of

61.

The monopolistically competitive seller’s demand curve will become more elastic the

62.

In the aggregate expenditures-output model, if aggregate expenditures are greater than GDP, then

63.

Set A contains the following elements: 1, 3, 5, 8, 10. Set B contains the following elements: 2,4,6,8,10. The notation B ℇ A would contain

64.

An appropriate fiscal policy for a severe recession is

65.

Friedman’s argument that competition among banks will tend to keep the difference between the return on bonds and money relatively constant implies that

66.

Immersing growth refers to a situation where

67.

Assertion: Depreciation of exchange rate tends to increase the price level.


Reason: It is assumed that the Central Bank undertakes no stabilisation policies.

68.

In the Keynesian model in the short run, the amount of employment is determined by the effective labour demand curve and the level of

69.

When two kinds of money are in circulation, the problem before government is to keep them simultaneously in circulation. This problem was explained by

70.

Gradual adjustment of prices and wages to an increase in the aggregate demand curve implies that the aggregate supply curve is

71.

In the context of Agricultural development, the trickle down theory has been interpreted to suggest that

72.

Which of the following models of business cycle generates constrained cycles?

73.

Circular test is an extension of

74.

Physiocracy which developed as commercial capitalism was yielding place to

75.

The Keynesian theory is consistent with the business cycle fact that inflation is

76.

If the demand for money is perfectly interest inelastic, the LM schedule will be

77.

Which of the following is not true regarding determination of wages under perfectly competitive conditions?

78.

The velocity of money is

79.

New Keynesian economists critique rational expectations theory by arguing that

80.

Assertion: Rosenstein Rodan advocated high rate of investment to take the underdeveloped economies out of shackles of underdevelopment.


Reason: Underdeveloped countries face various types of indivisibilities.

81.

Since 1971, world has been operating under

82.

In the New Economy, the share of industrial sector

83.

Which of the following is not a government transfer?

84.

The Cobb-Douglas production function assumes that the elasticity of substitution is

85.

The regression coefficient is independent of

86.

Which of the following is a characteristic of pure monopoly?

87.

Coefficient of correlation is independent of

88.

Assertion: The new endogenous growth theory examines production function that shows increasing returns.


Reason: Because of specialisation and investment in knowledge capital.

89.

Conspicuous consumption refers to

90.

Imperfect competition arises when

91.

Expenditure on consolidated fund has to be approved by

92.

In Harrod’s model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at the warranted rate with

93.

For a nine year moving average, how many fewer moving average values will there be at the beginning and end of the time series?

94.

Which of the following is true in a perfectly competitive market?

95.

Assertion: Balance of capital account is the difference between foreign exchange earned and foreign exchange spent by the economy.


Reason: Balance of invisibles is the difference between exports and imports of services.

96.

Who advocated tax on expenditure?

97.

In the ‘golden age’ equilibrium occurs when

98.

Which of the major port in India celebrated its Golden Jubilee in January 2012?

99.

Assertion: Removal of poverty remains a central concern of planning in India.


Reason: Development is not just about factories, dams and roads. It is basically about people.

100.

The book “Planned Economy for India” was written by