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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.

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

2.

According to United Nation, definition of natural resource is

3.

Imperfect competition arises when

4.

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

5.

Leontief tested his paradox theory for the USA for the year

6.

Objective test of social welfare maximisation was devised by

7.

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

8.

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?

9.

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

10.

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

11.

Flexible exchange rate is based on the concept of

12.

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


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

13.

Keynes reasoned that consumer expenditure is most closely related to

14.

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

15.

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

16.

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

17.

Who advocated tax on expenditure?

18.

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

19.

Economies and diseconomies of scale explain why the

20.

Mint parity theory is applicable only when countries are on

21.

In the ‘golden age’ equilibrium occurs when

22.

Immersing growth refers to a situation where

23.

Intellectual property rights regime is managed by

24.

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

25.

Demand-pull inflation is caused by

26.

Which of the following is not a government transfer?

27.

Coefficient of correlation is independent of

28.

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.

29.

The velocity of money is

30.

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

31.

An increase in supply of a commodity causes

32.

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

33.

Major commercial banks of India were nationalised in

34.

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

35.

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.

36.

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

37.

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

38.

Golden Age hypothesis is concerned with

39.

Since 1971, world has been operating under

40.

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

41.

New Keynesian economists critique rational expectations theory by arguing that

42.

‘Open Market Operations’ refers to

43.

Concept of disguised unemployment was introduced by

44.

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

45.

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

46.

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

47.

An autonomous investment rises, Keynesians expect increases in

48.

The Baumol-Tobin analysis suggests that

49.

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


Reason: Because of specialisation and investment in knowledge capital.

50.

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

51.

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

52.

An appropriate fiscal policy for a severe recession is

53.

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.

54.

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

55.

The regression coefficient is independent of

56.

What does Hedging mean?

57.

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

58.

According to Rostow, which is the transition stage?

59.

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


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

60.

Conspicuous consumption refers to

61.

Lorenz is a

62.

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

63.

Which of the following is a characteristic of pure monopoly?

64.

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

65.

The book “Planned Economy for India” was written by

66.

Indian planning mechanism has been criticised by

67.

The marginal propensity to consume measures the ratio of the

68.

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


Reason: Social stratification is a social reality.

69.

Physiocracy which developed as commercial capitalism was yielding place to

70.

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

71.

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

72.

In the case of monopolistic competition

73.

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.

74.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

75.

Circular test is an extension of

76.

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

77.

Expenditure on consolidated fund has to be approved by

78.

Increase in capital stock between two periods of time is called

79.

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


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

80.

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

81.

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

82.

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

83.

Golden Age hypothesis is concerned with

84.

In the liquidity trap

85.

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

86.

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

87.

Welfare is a/an

88.

For economic development, Schumpeter gave importance to

89.

Which of the following is the simplest to measure?

90.

Unfair trade practices are included in

91.

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

92.

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

93.

In the New Economy, the share of industrial sector

94.

Economic development, as a concept is more relevant for

95.

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

96.

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

97.

Money is non-neutral because

98.

The Keynesian theory of money demand emphasizes the importance of

99.

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

100.

Total utility of a commodity can be found by