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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.

Mint parity theory is applicable only when countries are on

2.

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

3.

What does Hedging mean?

4.

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

5.

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?

6.

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

7.

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


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

8.

According to United Nation, definition of natural resource is

9.

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

10.

Unfair trade practices are included in

11.

The velocity of money is

12.

Immersing growth refers to a situation where

13.

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

14.

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

15.

Since 1971, world has been operating under

16.

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

17.

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

18.

Which of the following is not a government transfer?

19.

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

20.

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

21.

Welfare is a/an

22.

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

23.

Conspicuous consumption refers to

24.

‘Open Market Operations’ refers to

25.

Circular test is an extension of

26.

Flexible exchange rate is based on the concept of

27.

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

28.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

29.

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

30.

Lorenz is a

31.

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

32.

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

33.

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.

34.

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

35.

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

36.

Objective test of social welfare maximisation was devised by

37.

Which of the following is the simplest to measure?

38.

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


Reason: Social stratification is a social reality.

39.

Demand-pull inflation is caused by

40.

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

41.

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

42.

Keynes reasoned that consumer expenditure is most closely related to

43.

Golden Age hypothesis is concerned with

44.

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

45.

Coefficient of correlation is independent of

46.

An appropriate fiscal policy for a severe recession is

47.

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.

48.

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


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

49.

For economic development, Schumpeter gave importance to

50.

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

51.

The marginal propensity to consume measures the ratio of the

52.

In the case of monopolistic competition

53.

Which of the following is a characteristic of pure monopoly?

54.

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

55.

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

56.

Total utility of a commodity can be found by

57.

Concept of disguised unemployment was introduced by

58.

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

59.

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

60.

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

61.

An autonomous investment rises, Keynesians expect increases in

62.

Economic development, as a concept is more relevant for

63.

In the liquidity trap

64.

Physiocracy which developed as commercial capitalism was yielding place to

65.

New Keynesian economists critique rational expectations theory by arguing that

66.

Imperfect competition arises when

67.

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

68.

Money is non-neutral because

69.

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


Reason: Because of specialisation and investment in knowledge capital.

70.

The regression coefficient is independent of

71.

In the ‘golden age’ equilibrium occurs when

72.

The Keynesian theory of money demand emphasizes the importance of

73.

Increase in capital stock between two periods of time is called

74.

Intellectual property rights regime is managed by

75.

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

76.

Economies and diseconomies of scale explain why the

77.

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.

78.

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

79.

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

80.

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

81.

According to Rostow, which is the transition stage?

82.

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

83.

Major commercial banks of India were nationalised in

84.

Leontief tested his paradox theory for the USA for the year

85.

An increase in supply of a commodity causes

86.

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

87.

The Baumol-Tobin analysis suggests that

88.

The book “Planned Economy for India” was written by

89.

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

90.

Expenditure on consolidated fund has to be approved by

91.

In the New Economy, the share of industrial sector

92.

Indian planning mechanism has been criticised by

93.

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

94.

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


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

95.

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

96.

Who advocated tax on expenditure?

97.

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.

98.

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

99.

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

100.

Golden Age hypothesis is concerned with