UGC NET Economics Mock Test Leave a Comment / By admin / May 21, 2020 UGC NET Economics Mock Test by Economics Harbour Instructions: The test will be for 2 hours and has 100 questions, all of which are compulsory. Please note, you will be allowed to attempt this test ONCE. Do fill in the contact details to avail different discount options which will be disclosed with the end of this test. So, try the exam thoroughly. The offers are huge. Your Name Your Email 1. Parallel economy is referred to as Unsanctioned economy Unaccounted economy Subterranean economy All of the above 2. Which one of the following is NOT true about the factors determining the price elasticity? Higher the proportion of income spent on a good, higher is likely to be the price elasticity of that good. More the number of substitutes of a good more elastic is the demand for that good. Less the number of substitutes of a good more elastic is the demand of that good. Longer the time-period more elastic is the demand. 3. Technical progress is capital-using if, along a line on which the K/L ratio is constant, the MRS(LK) Decreases Remains constant Increases Initially increases, then decreases. 4. The price of goods in rival supply tend to move in ______ direction. Same Opposite Random None of the above 5. Supply curve of labour slopes Downward from right to left Upward from right to left Downward from left to right None of the above 6. In which phase of population growth of India, did the compound annual growth rate nearly double the growth rate of the previous year? First phase (1891-1921) Second phase (1921-1951) Third phase (1951-1981) Fourth phase (1981-2001) 7. What type of rate is the Current Daily Status Unemployment rate? Time rate Person rate Both A and B Wage rate 8. What is the reason behind declining importance of natural resources with respect to economic development? Income elasticity of demand for agricultural products is relatively low. Continuous improvements in technology permit substitution of labour and capital for land and other natural resources. Both A and B Dependence of the industries on imports. 9. Which of the following is an economic factor affecting cropping patterns? Price and income maximisation Farm size Insurance against risk All of the above 10. If we want to find price-elasticity at a point on a non-linear demand curve, we have to Draw a new tangent at that point Find arc elasticity between any two points near to that point. Draw a secant at that point. None of the above 11. The state with the highest sex ratio is Haryana Kerala Punjab Manipur 12. Rangarajan admits that in India the price effect of money supply is Equal to the output effect. Greater than the output effect Lower than the output effect None of the above 13. The point where the LMC curve intersects LAC curve, there the slope of the LAC curve is Vertical to X-axis Parallel to X-Axis Parallel to Y-axis Inclined at 45 degrees 14. Shut down point for a firm is a situation where its Average revenue = average cost Average revenue > Average cost Average revenue = Average variable cost Average revenue > Average variable cost 15. Sacrifice, discomfort, toil and pain involved in supplying the factors of production by their owners is called Money cost Opportunity cost Private cost Real cost 16. Which of the following is a consequence of inflationary price rise? Increase in economic inequalities Obstacle in development Adverse effect on the balance of payments All of the above 17. India’s exports were almost stagnant during the first 15 years of planning because of High cost of production of our export goods. Dominance of traditional goods in exports. Rise in price in India All of the above 18. Which of the following is NOT a correct finding of the various studies on black money in India? The amount of black money has been growing in relative terms as a percentage of GNP. The rate of growth of black income generation is faster than the rate of growth of GNP. The amount of black money has not been growing in absolute terms. None of the above 19. Which one of the following is NOT an exception to the Law of Demand? Giffen goods Goods of social distinction Inferior goods Demonstration effect 20. Which of the following is NOT true about the Forest Policy of India? It looks upon forest as a vital element for achieving a congenial natural environment for the economy. Its development is regarded as a helpful factor for the progress of the rural economy. Its objective is to ensure the conservation of the existing forests. The policy emphasises on the association of agriculture with forestry. 21. By which of the following factors during the First Plan Period was the balance of payments affected? Korean War boom American recession of 1953 Favourable monsoon at home All of the above 22. Which of the following is NOT a true feature of the work force of India? Low participation rate of the workforce. Lower ratio of females in the workforce. Lower work-participation rates in the rural areas compared to that in the urban areas. Increase in the female participation in developed states. 23. When the quantity of only one input is increased, other inputs held fixed, the change in physical output is called Returns to a factor Returns to a scale Returns to capital None of the above 24. Ricardo regards rent as Differential rent Scarcity rent Economic rent Variable rent 25. Which of the following is NOT a demand-pull factor of inflation? Deficit financing and increase in money supply. Mounting government expenditure. Administered prices Role of black money 26. In developed countries, which form does unemployment generally assume? Keynesian involuntary unemployment Temporary frictional unemployment Both A and B Disguised unemployment 27. When did the Committee of Experts on Unemployment under the chairmanship of B. Bhagwati, submit its report to the Government? 1982 1968 1976 1973 28. Which state has the lowest density of population? Nagaland Tripura Arunachal Pradesh Sikkim 29. The minimum possible price which just covers the marginal cost of the product paid by the consumer is called Market cost Nominal cost Opportunity cost Prevailing cost 30. If marginal cost is less than marginal revenue, it pays the firm to Cut its output Expand its output Keep its output same as before Keep its price same as before 31. If the slope of Average Cost Curve is positive then MC<AC MC>AC MC=AC MC=0 32. When a firm experiences external economies, its cost curves Shift downwards Shift upwards Remain unchanged None of the above 33. The equilibrium of the monopolist will never be at the level of output at which the elasticity of the demand curve or the average revenue curve is Less than one Greater than one Equal to one None of the above 34. The cause of degradation of irrigated lands is Rise in sub-soil water level The development of saline soils Waterlogging All of the above 35. Perfectly elastic demand curve is Parallel to X-axis Parallel to Y-axis Inclined at 45 degrees to X-axis None of the above 36. During which decade did the country see the sharpest decline of 11 points in the sex ratio? 1951-61 1961-71 1971-81 1981-91 37. Which of the following is a cause for inflationary pressure in the 90s? Higher fiscal deficit Sharp rise in reserve money Supply-demand imbalances All of the above 38. In which type of unemployment, the marginal productivity of labour is zero, so that the removal of excess labour would not reduce total output? Underemployment Disguised unemployment Open unemployment Structural unemployment 39. The Net Terms of Trade improves if Exports prices rise more quickly than import prices. Export prices fall more slowly than import prices. Both A and B Import prices remain constant 40. Actual earning minus transfer earning is equal to Differential rent Scarcity rent Economic rent None of the above 41. When was the National Water Policy adopted? 1972 1987 1986 1982 42. In which of the following regions has the production of iron ore begun only in recent years? Naomandi Keonjhar Bailadilla mines of Bastar District None of the above 43. A firm which will be the first to leave the industry if price falls is called Marginal firm Average firm Weak firm None of the above 44. Which of the following is true about a monopolist at equilibrium output level? Marginal cost is equal to marginal revenue Price is equal to average revenue Average revenue is greater than marginal revenue. All of the above 45. Kaldor estimated the size of black income as the difference between the estimated non-salary income above the exemption limit and the Actual salary income assessed to tax Actual non-salary income assessed to tax Actual non-salary income not assessed to tax None of the above 46. What can be said about the relationship between the degree of urbanisation and per capita income? Both are independent They are positively associated They are negatively associated None of the above 47. Which of the following conditions show optimality in long run equilibrium? The output is produced at the minimum feasible cost. Plants are used at full capacity. Firms only earn normal profits. All of the above 48. If there are constant returns to scale, there would always be Constant returns to a factor Diminishing returns to a factor Increasing returns to a factor None of the above 49. Over a period of time, the effect of increase in the money supply percolates into different sectors of the economy, resulting in the rise of demand and the price level, which is known as Supply effect of money Percolation effect Relevant effect All of the above 50. The supply curve of the firm may be derived by the points of intersections of its MR curve with successive demand MC curves with a particular demand curve MC curve with successive demand curves None of the above 51. When did the Government launch a new agricultural strategy in the form of Intensive Agriculture District Programme? 1958 1959 1961 1962 52. The minimum price at which the sellers refuse to supply the good at all and store it with themselves is known as Nominal price Market price Reserve price Prevailing price 53. Which term refers to a system of political and social relations between two countries, of which one is the ruler and the other is the ruled? Ruling Autocracy Colonialism Imperialism None of the above 54. Effect of an increase in the fixed cost on the output and price of a firm in the short run under perfect competition is that Output rises, price falls Output remains same, price rises. Output falls, price remains same Output as well as price remains same 55. Labour-deepening technical progress increases Marginal Product of Labour Faster than Marginal Product of capital Slower than Marginal Product of capital At the same rate as the Marginal Product of capital None of the above 56. What is the impact on price and quantity in a particular market if there is an increase in consumers’ income? Price falls, quantity demanded and supplied increases. Price rises, quantity demanded and supplied increases. Price remains the same, quantity demanded and supplied increases. None of the above 57. Which objective was stressed by both National Forest Policy Resolutions of 1952 and 1988? To bring at least a third of the land area under forests. To increase the forest reserved area. To reduce the agriculture land area All of the above 58. On the eve of planning, the rise in imports in India was largely due to Pent up demand of the war Shortage of food Rise in the imports of machinery and equipment All of the above 59. After independence when did the imports of foodgrains decline for the first time? During the First Plan period During the Second Plan Period During the Third Plan period During the Fourth Plan period 60. ______ will prevail when workers are not organised into trade unions. Monopsony Monopoly Duopoly Oligopoly 61. When rent arises due to difference in productivity of different units of a factor, it is called Scarcity rent Variable rent Differential rent None of the above 62. Which of the following minerals is exported from India? Iron ore Manganese Mica All of the above 63. Afforestation of catchment areas of rivers is essential for Moderating floods Improving the fertility of the soil. Avoidance of erosion of land. All of the above 64. Birth rates are higher in states which have Higher infant mortality rates Lower infant mortality rates Higher child mortality rates Lower child mortality rates 65. Which type of countries have the highest degree of overall equality in the distribution of income? Capitalist Socialist Democratic None of the above 66. Work effort increases with the rise in the wage rate when the Substitution effect is equal to the income effect Substitution effect is greater than the income effect Substitution effect is less than the income effect None of the above 67. Which method was followed by the Direct Tax Enquiry Committee for estimating black incomes? Edgar L. Feige’s method Kaldor’s method Minhas’ method None of the above 68. What determines the type and scale of industry that can be developed in a country? The type of natural resources available. The distribution of natural resources. The quantities of natural resources All of the above 69. The amount of labour supply at a point of time depends on Labour force participation rate Number of hours people are willing to work. Amount of effort workers put forth while at work. All of the above 70. Which of the following is an implication of the imposition of ceiling below the equilibrium price? Shortages in the market Problem of allocation of limited supplies among large number of consumers Black marketing All of the above 71. Which concept provides the most appropriate measure of unemployment? The Usual Status rate concept The Current Weekly Status rate concept The Current Daily Status rate None of the above 72. Who estimated the number of persons below the poverty line on the basis of an average calorie intake of 2,250 per capita per day? Mr. P.D. Ojha Dr. P.K. Bandhan Dr. B.S. Minhas Mr. Montek Ahluwalia 73. When was the Central Soil Conservation Board set up by the Union Government? 1949 1963 1953 1976 74. In long run competitive equilibrium under differential cost conditions, the intra-marginal firm earns Normal profit More than normal profit Abnormal profit Profit less than normal profit 75. In the long run, under perfect competition price of the factor is equal to Marginal revenue product Average revenue product Both A and B Marginal physical product 76. Monopoly equilibrium can be reached when Marginal cost is rising Marginal cost is remaining constant Marginal cost is falling All of the above 77. With increase in average cost, marginal cost rises at a Slower rate Faster rate Similar rate Does not rise 78. Which of the following is true at equilibrium in monopolistic competition? Price is greater than marginal cost. Average revenue is greater than marginal revenue. Both A and B Average revenue is equal to marginal revenue 79. Extraction of coal in India is not always profitable because Quality of coal is inferior Labour is very expensive Coal resources lie too deep All of the above 80. Occupational structure in a country depends on Development of productive forces Specialisation level of per capita income Availability of natural resources. All of the above 81. Natural resources of a country influence Economic growth Economic structure Both A and B The agricultural policy 82. The expenditure on advertising, sales promotion, public relations, etc. is called Advertisement cost Surplus cost Selling cost Variable cost 83. The locus of points defined by different levels of output of a firm A and his rival B, which yield to A the same level of profit, is called An isoprofit curve for firm A An isoprofit curve for firm B An isoprofit curve for both firm A and firm B None of the above 84. The problem of cyclical unemployment in developed economies originates from Demand side Supply side Investment side Savings side 85. Which type of unemployment is associated with the inadequacy of productive capacity to create enough jobs for all those able and willing to work? Disguised unemployment Structural unemployment Educated unemployment Underemployment 86. All the goods and services which a worker gets directly or indirectly for services rendered by him are called Gross wages Real wages Nominal wages Total wages 87. Which of the following is true at the long run equilibrium of a perfectly competitive firm? Long run marginal cost curve cuts the long run average cost curve at its minimum point. Short run marginal cost curve cuts short run average cost curve at its minimum. Both A and B Long run fixed cost curve cuts the short run average cost curve. 88. ______ refers to the case of a product which is demanded for two or more purposes. Rival demand Associated demand Binary demand Bilateral demand 89. Price elasticity at the mid point of a linear demand curve is 1 0 Infinity -1 90. Which one of the following is true about the relation between normal price and market price? Market price tends to be equal to normal price. Market price is greater than normal price. Market price is equal to normal price. Market price is lesser than normal price. 91. If MRS between two goods X and Y is equal for all consumers, then this is the marginal condition for a Pareto optimal Distribution of commodities among consumers allocation of factors among firm producers. Composition of output None of the above 92. A comparison of the levels of living of the top 5-10 percentage with the bottom 5-10 percentage of the population reflects The absolute standard of poverty The relative standard of poverty The comprehensive standard of poverty The comparative standard of poverty 93. Non-traditional export items like engineering goods are of High income elasticity High price elasticity Both A and B Low income elasticity 94. The profits of the entrepreneur will be maximum when he is employing such a number of units of a factor that its marginal revenue product equals its Marginal physical product Marginal factor cost Value of marginal product None of the above 95. A situation in which it is impossible to make any one better-off without making someone worse-off is said to be Social optimal Welfare optimal Pareto optimal None of the above 96. The classification of income according to factoral service rendered by different factors of production, is called Personal distribution Factorial distribution Functional distribution None of the above 97. The second highest densely populated state of the country is Bihar West Bengal Uttar Pradesh Maharashtra 98. Constituents of gross profit are Depreciation fund Monopoly profit Implicit costs All of the above 99. Addition to the total physical output by application of an additional unit of a variable factor of production is called Marginal physical product Marginal revenue product Value of marginal product None of the above 100. The theory of _____ surplus treats the origin of profit to the entrepreneurial abilities. Differential Economic Dynamic None of the above