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.

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

2.

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.

3.

Flexible exchange rate is based on the concept of

4.

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

5.

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

6.

Mint parity theory is applicable only when countries are on

7.

In the case of monopolistic competition

8.

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

9.

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

10.

Immersing growth refers to a situation where

11.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

12.

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?

13.

Economies and diseconomies of scale explain why the

14.

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

15.

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

16.

‘Open Market Operations’ refers to

17.

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

18.

Unfair trade practices are included in

19.

The velocity of money is

20.

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

21.

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

22.

In the ‘golden age’ equilibrium occurs when

23.

Lorenz is a

24.

Who advocated tax on expenditure?

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.

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.

27.

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

28.

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

29.

Intellectual property rights regime is managed by

30.

According to Rostow, which is the transition stage?

31.

An increase in supply of a commodity causes

32.

According to United Nation, definition of natural resource is

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.

Golden Age hypothesis is concerned with

35.

Welfare is a/an

36.

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

37.

Golden Age hypothesis is concerned with

38.

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

39.

Which of the following is a characteristic of pure monopoly?

40.

Money is non-neutral because

41.

Since 1971, world has been operating under

42.

Objective test of social welfare maximisation was devised by

43.

Keynes reasoned that consumer expenditure is most closely related to

44.

Which of the following is the simplest to measure?

45.

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

46.

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

47.

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

48.

The Keynesian theory of money demand emphasizes the importance of

49.

Leontief tested his paradox theory for the USA for the year

50.

The regression coefficient is independent of

51.

Total utility of a commodity can be found by

52.

Imperfect competition arises when

53.

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

54.

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

55.

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

56.

In the liquidity trap

57.

For economic development, Schumpeter gave importance to

58.

What does Hedging mean?

59.

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

60.

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

61.

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

62.

Concept of disguised unemployment was introduced by

63.

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

64.

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


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

65.

Demand-pull inflation is caused by

66.

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

67.

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

68.

An autonomous investment rises, Keynesians expect increases in

69.

The book “Planned Economy for India” was written by

70.

An appropriate fiscal policy for a severe recession is

71.

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

72.

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

73.

The marginal propensity to consume measures the ratio of the

74.

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


Reason: Because of specialisation and investment in knowledge capital.

75.

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

76.

Which of the following is not a government transfer?

77.

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

78.

In the New Economy, the share of industrial sector

79.

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


Reason: Social stratification is a social reality.

80.

New Keynesian economists critique rational expectations theory by arguing that

81.

Expenditure on consolidated fund has to be approved by

82.

Indian planning mechanism has been criticised by

83.

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


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

84.

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

85.

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

86.

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

87.

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

88.

Conspicuous consumption refers to

89.

Major commercial banks of India were nationalised in

90.

Circular test is an extension of

91.

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

92.

The Baumol-Tobin analysis suggests that

93.

Physiocracy which developed as commercial capitalism was yielding place to

94.

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.

95.

Economic development, as a concept is more relevant for

96.

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

97.

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

98.

Increase in capital stock between two periods of time is called

99.

Coefficient of correlation is independent of

100.

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