Questions? Feedback? powered by Olark live chat software

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
Name Email
1.

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

2.

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


Reason: Social stratification is a social reality.

3.

In the New Economy, the share of industrial sector

4.

Economic development, as a concept is more relevant for

5.

Expenditure on consolidated fund has to be approved by

6.

Objective test of social welfare maximisation was devised by

7.

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

8.

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

9.

Which of the following is not a government transfer?

10.

The Baumol-Tobin analysis suggests that

11.

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

12.

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

13.

Money is non-neutral because

14.

According to United Nation, definition of natural resource is

15.

An appropriate fiscal policy for a severe recession is

16.

Since 1971, world has been operating under

17.

Indian planning mechanism has been criticised by

18.

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

19.

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

20.

The regression coefficient is independent of

21.

Concept of disguised unemployment was introduced by

22.

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

23.

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.

24.

‘Open Market Operations’ refers to

25.

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


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

26.

Conspicuous consumption refers to

27.

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

28.

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

29.

Coefficient of correlation is independent of

30.

Imperfect competition arises when

31.

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


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

32.

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

33.

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

34.

Flexible exchange rate is based on the concept of

35.

The Keynesian theory of money demand emphasizes the importance of

36.

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

37.

Mint parity theory is applicable only when countries are on

38.

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

39.

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

40.

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

41.

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.

42.

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

43.

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

44.

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.

45.

The velocity of money is

46.

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

47.

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

48.

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

49.

In the ‘golden age’ equilibrium occurs when

50.

New Keynesian economists critique rational expectations theory by arguing that

51.

The book “Planned Economy for India” was written by

52.

Economies and diseconomies of scale explain why the

53.

Immersing growth refers to a situation where

54.

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


Reason: Because of specialisation and investment in knowledge capital.

55.

Unfair trade practices are included in

56.

An increase in supply of a commodity causes

57.

In the liquidity trap

58.

According to Rostow, which is the transition stage?

59.

Which of the following is the simplest to measure?

60.

Lorenz is a

61.

Increase in capital stock between two periods of time is called

62.

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.

63.

Total utility of a commodity can be found by

64.

Welfare is a/an

65.

An autonomous investment rises, Keynesians expect increases in

66.

Who advocated tax on expenditure?

67.

Golden Age hypothesis is concerned with

68.

Circular test is an extension of

69.

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

70.

Intellectual property rights regime is managed by

71.

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

72.

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


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

73.

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

74.

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

75.

Leontief tested his paradox theory for the USA for the year

76.

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

77.

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

78.

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

79.

What does Hedging mean?

80.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

81.

Physiocracy which developed as commercial capitalism was yielding place to

82.

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

83.

Golden Age hypothesis is concerned with

84.

The marginal propensity to consume measures the ratio of the

85.

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

86.

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

87.

Keynes reasoned that consumer expenditure is most closely related to

88.

Which of the following is a characteristic of pure monopoly?

89.

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

90.

For economic development, Schumpeter gave importance to

91.

Major commercial banks of India were nationalised in

92.

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?

93.

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

94.

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

95.

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

96.

Demand-pull inflation is caused by

97.

In the case of monopolistic competition

98.

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

99.

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

100.

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