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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.

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

2.

Imperfect competition arises when

3.

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

4.

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

5.

Objective test of social welfare maximisation was devised by

6.

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


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

7.

New Keynesian economists critique rational expectations theory by arguing that

8.

An autonomous investment rises, Keynesians expect increases in

9.

Total utility of a commodity can be found by

10.

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

11.

Increase in capital stock between two periods of time is called

12.

According to United Nation, definition of natural resource is

13.

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

14.

Major commercial banks of India were nationalised in

15.

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.

16.

Which of the following is the simplest to measure?

17.

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

18.

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

19.

Circular test is an extension of

20.

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.

21.

Coefficient of correlation is independent of

22.

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

23.

Immersing growth refers to a situation where

24.

The marginal propensity to consume measures the ratio of the

25.

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

26.

Golden Age hypothesis is concerned with

27.

According to Rostow, which is the transition stage?

28.

Lorenz is a

29.

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

30.

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

31.

Intellectual property rights regime is managed by

32.

What does Hedging mean?

33.

In the ‘golden age’ equilibrium occurs when

34.

Since 1971, world has been operating under

35.

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

36.

Which of the following is not a government transfer?

37.

In the case of monopolistic competition

38.

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


Reason: Social stratification is a social reality.

39.

Which of the following is a characteristic of pure monopoly?

40.

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

41.

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

42.

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

43.

Golden Age hypothesis is concerned with

44.

Physiocracy which developed as commercial capitalism was yielding place to

45.

Expenditure on consolidated fund has to be approved by

46.

Demand-pull inflation is caused by

47.

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

48.

Money is non-neutral because

49.

Leontief tested his paradox theory for the USA for the year

50.

The Baumol-Tobin analysis suggests that

51.

In the New Economy, the share of industrial sector

52.

The Keynesian theory of money demand emphasizes the importance of

53.

An appropriate fiscal policy for a severe recession is

54.

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.

55.

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

56.

The velocity of money is

57.

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

58.

The regression coefficient is independent of

59.

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

60.

The book “Planned Economy for India” was written by

61.

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


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

62.

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

63.

Economies and diseconomies of scale explain why the

64.

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


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

65.

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

66.

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

67.

Keynes reasoned that consumer expenditure is most closely related to

68.

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

69.

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

70.

Who advocated tax on expenditure?

71.

Mint parity theory is applicable only when countries are on

72.

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

73.

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

74.

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

75.

An increase in supply of a commodity causes

76.

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

77.

Economic development, as a concept is more relevant for

78.

Indian planning mechanism has been criticised by

79.

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

80.

Unfair trade practices are included in

81.

Flexible exchange rate is based on the concept of

82.

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.

83.

In the liquidity trap

84.

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

85.

For economic development, Schumpeter gave importance to

86.

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

87.

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

88.

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

89.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

90.

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


Reason: Because of specialisation and investment in knowledge capital.

91.

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

92.

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

93.

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

94.

‘Open Market Operations’ refers to

95.

Concept of disguised unemployment was introduced by

96.

Welfare is a/an

97.

Conspicuous consumption refers to

98.

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

99.

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?

100.

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