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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.

The Keynesian theory of money demand emphasizes the importance of

2.

Coefficient of correlation is independent of

3.

Circular test is an extension of

4.

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

5.

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

6.

The book “Planned Economy for India” was written by

7.

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

8.

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

9.

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

10.

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

11.

‘Open Market Operations’ refers to

12.

Who advocated tax on expenditure?

13.

What does Hedging mean?

14.

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

15.

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.

16.

New Keynesian economists critique rational expectations theory by arguing that

17.

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

18.

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

19.

Conspicuous consumption refers to

20.

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

21.

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

22.

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

23.

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


Reason: Social stratification is a social reality.

24.

Unfair trade practices are included in

25.

Concept of disguised unemployment was introduced by

26.

Leontief tested his paradox theory for the USA for the year

27.

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

28.

For economic development, Schumpeter gave importance to

29.

In the case of monopolistic competition

30.

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

31.

Flexible exchange rate is based on the concept of

32.

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

33.

Which of the following is not a government transfer?

34.

Assertion: Gold standard broke down after first world war.


Reason: Countries had a different rate of inflation.

35.

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

36.

Demand-pull inflation is caused by

37.

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

38.

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?

39.

In the New Economy, the share of industrial sector

40.

Lorenz is a

41.

Welfare is a/an

42.

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.

43.

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

44.

Immersing growth refers to a situation where

45.

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


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

46.

Golden Age hypothesis is concerned with

47.

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

48.

Increase in capital stock between two periods of time is called

49.

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


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

50.

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

51.

Money is non-neutral because

52.

Total utility of a commodity can be found by

53.

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

54.

The regression coefficient is independent of

55.

An appropriate fiscal policy for a severe recession is

56.

Keynes reasoned that consumer expenditure is most closely related to

57.

In the ‘golden age’ equilibrium occurs when

58.

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

59.

An increase in supply of a commodity causes

60.

According to United Nation, definition of natural resource is

61.

An autonomous investment rises, Keynesians expect increases in

62.

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

63.

Since 1971, world has been operating under

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.

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

66.

According to Rostow, which is the transition stage?

67.

Indian planning mechanism has been criticised by

68.

The velocity of money is

69.

The marginal propensity to consume measures the ratio of the

70.

Economic development, as a concept is more relevant for

71.

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

72.

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

73.

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

74.

Economies and diseconomies of scale explain why the

75.

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

76.

In the liquidity trap

77.

Golden Age hypothesis is concerned with

78.

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

79.

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

80.

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


Reason: Because of specialisation and investment in knowledge capital.

81.

Expenditure on consolidated fund has to be approved by

82.

Mint parity theory is applicable only when countries are on

83.

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

84.

The Baumol-Tobin analysis suggests that

85.

Major commercial banks of India were nationalised in

86.

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.

87.

Objective test of social welfare maximisation was devised by

88.

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

89.

Intellectual property rights regime is managed by

90.

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

91.

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

92.

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

93.

Physiocracy which developed as commercial capitalism was yielding place to

94.

Which of the following is the simplest to measure?

95.

Imperfect competition arises when

96.

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

97.

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

98.

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

99.

Which of the following is a characteristic of pure monopoly?

100.

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.