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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.

Demand-pull inflation is caused by

2.

The book “Planned Economy for India” was written by

3.

Concept of disguised unemployment was introduced by

4.

Physiocracy which developed as commercial capitalism was yielding place to

5.

Welfare is a/an

6.

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

7.

Intellectual property rights regime is managed by

8.

Expenditure on consolidated fund has to be approved by

9.

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

10.

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

11.

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

12.

The marginal propensity to consume measures the ratio of the

13.

In the New Economy, the share of industrial sector

14.

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

15.

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

16.

Money is non-neutral because

17.

Total utility of a commodity can be found by

18.

Circular test is an extension of

19.

In the liquidity trap

20.

In the case of monopolistic competition

21.

Imperfect competition arises when

22.

Economies and diseconomies of scale explain why the

23.

Objective test of social welfare maximisation was devised by

24.

In the ‘golden age’ equilibrium occurs when

25.

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

26.

Who advocated tax on expenditure?

27.

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

28.

Golden Age hypothesis is concerned with

29.

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.

30.

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


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

31.

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

32.

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

33.

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

34.

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

35.

Which of the following is the simplest to measure?

36.

Lorenz is a

37.

Immersing growth refers to a situation where

38.

The Baumol-Tobin analysis suggests that

39.

Golden Age hypothesis is concerned with

40.

For economic development, Schumpeter gave importance to

41.

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


Reason: Because of specialisation and investment in knowledge capital.

42.

Indian planning mechanism has been criticised by

43.

The Keynesian theory of money demand emphasizes the importance of

44.

According to United Nation, definition of natural resource is

45.

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

46.

An appropriate fiscal policy for a severe recession is

47.

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

48.

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

49.

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.

50.

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

51.

Mint parity theory is applicable only when countries are on

52.

Which of the following is not a government transfer?

53.

Flexible exchange rate is based on the concept of

54.

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

55.

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

56.

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

57.

Major commercial banks of India were nationalised in

58.

Keynes reasoned that consumer expenditure is most closely related to

59.

Since 1971, world has been operating under

60.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

61.

According to Rostow, which is the transition stage?

62.

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

63.

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?

64.

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

65.

Coefficient of correlation is independent of

66.

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

67.

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.

68.

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

69.

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

70.

Unfair trade practices are included in

71.

Leontief tested his paradox theory for the USA for the year

72.

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

73.

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

74.

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

75.

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

76.

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

77.

‘Open Market Operations’ refers to

78.

Which of the following is a characteristic of pure monopoly?

79.

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

80.

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

81.

The velocity of money is

82.

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

83.

Conspicuous consumption refers to

84.

New Keynesian economists critique rational expectations theory by arguing that

85.

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

86.

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


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

87.

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

88.

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


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

89.

Increase in capital stock between two periods of time is called

90.

An autonomous investment rises, Keynesians expect increases in

91.

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

92.

Economic development, as a concept is more relevant for

93.

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

94.

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.

95.

An increase in supply of a commodity causes

96.

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

97.

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

98.

What does Hedging mean?

99.

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


Reason: Social stratification is a social reality.

100.

The regression coefficient is independent of