UGC NET Economics Online Mock – 1 Leave a Comment / By Manleen Test / March 6, 2023 March 7, 2023 Economics Harbour: UGC NET Economics Online Mock - 1 Instructions: 100 questions for 2 marks each No negative marking Total Time: 2 hours Name Email In case of indifference curve of two goods X and Y, as consumption of X increases, Deselect Answer MRSxy increases MRSxy decreases MRSxy remains the same First MRSxy increases but later on MRSxy decreases Assuming the probability of a male birth is 0.5, find the chances that a family of 3 children will have two boys and one girl. Deselect Answer 1/8 2/8 3/8 4/8 A sudden shift from import tariffs to free trade may induce short-term unemployment in Deselect Answer import competing industries. industries that are only exporters. industries that sell domestically as well as export. industries that neither import nor export. Harrod-neutral technical progress is necessarily Deselect Answer growth augmenting labour augmenting capital augmenting resource augmenting Which of the following measures are used by a risk-averse person to minimise risk? 1. Diversification of resources 2. Insurance of risk event 3. Total cost of resources 4. Value of information of risk event Choose the correct answer from the options given below Deselect Answer 1, 2 and 3 1, 2 and 4 2, 3 and 4 1, 3 and 4 Inequalities in income are measured by which of the following? 1. Lorenz ratio 2. Theil’s index 3. Palma ratio 4. Deprivation ratio Choose the correct answer from the options given below Deselect Answer Only 1 1 and 2 1 and 4 1, 2 and 3 Which of the following are relevant conditions assumed by the Factor Price Equalisation theorem? 1. The countries are characterised by different factor endowments. 2. The countries are characterised by different production functions 3. The industries are characterised by different factor intensities. 4. Each country will export the commodity which uses its abundant factor. Choose the correct answer from the options given below Deselect Answer 1, 2 and 3 1,3 and 4 1, 2 and 4 2, 3 and 4 Match List 1 with List II List I List II A. Canons of Taxation 1. U.K. Hicks B. Canons of Public Expenditure 2. Adam Smith C. Effective Incidence of Tax 3. Findlay Shirras D. Benefit received approach of Public Expenditure 4. Erik Lindahl Deselect Answer 2 3 1 4 1 2 3 4 2 3 4 1 4 1 2 3 Arrange the following committees appointed for the Banking Sector in India in chronological order. Urijit Patel Committee Goipora Committee Narasimham Committee – I Chakravarty Committee Deselect Answer 4, 3, 2, 1 1, 3, 4, 2 3, 2, 4, 1 4, 2, 3, 1 The law of equilibrium Marginal utility states that Deselect Answer MUx*Px = MUY*PY = MUz*Pz MUx/Px = MUy/Py = MUz/Pz = MUm MUx/Px > MUy/Py > MUz/Pz > MU¬m MUx/Px < MUy/Py < MUz/Pz < MUm The marginal propensity to consume is Deselect Answer that part of the consumer dollar that goes to the purchase of investment goods. the percentage of total disposable income spent on the consumption. the fraction of each additional rupee of disposable income spent on consumption. total consumption in a given period divided by total disposable income. Standard deviation can be expressed as Deselect Answer (∑〖|X ̅-X|〗)/N (∑〖|X- X ̅|〗)/N √((∑〖(X-X ̅)〗^2 )/N) None of the above Which of the following sets are infinite? A = {x:x Ɛ Z and x2 – 5x + 6 = 0} B = {x:x Ɛ Z and x2 is even} C = {x:x Ɛ Z and x2 = 36} D = {x:x Ɛ Z and x > -10}Deselect Answer Only A and B Only B and C Only B and D Only A and C According to the theory of ______, it makes sense for a country to specialise in producing the goods it produces most efficiently and buy the products it produces less efficiently from other countries even if it could produce the good more efficiently itself. Deselect Answer strategic trade pertinent advantage comparative advantage absolute advantage Collusion is harmful for customer when it leads to Deselect Answer limited choice increased cost Both A and B None of the above The basic regulatory authority for mutual funds and stock market lies with the Deselect Answer Government of India Reserve Bank of India SEBI Stock Exchanges Which of the following is not included in measuring economic development? Deselect Answer Health facility Rate of growth of national income Literacy Population growth Consider the following statements: Generally, public good provides for benefit to public through state. Public good is an item whose consumption is not decided by the individual consumer. In economics, public good is a product or service that is non-excludable and non-depletable. Which of the above statements is/are correct?Deselect Answer 1 and 3 Only 3 2 and 3 All of the above What is the name of the scheme which provides training and skills to women in traditional and non-traditional trades? Deselect Answer Kishori Shakti Yojana Rashtriya Mahila Kosh Swatansiddha Swavalamban Match the following List I List II A. Various combinations that a consumer can purchase 1. Indifference map B. Various combinations of two commodities providing equal satisfaction to consumers. 2. Indifference curve C. A set of indifference curves 3. Budget line D. Point of tangency of a budget line on an indifference curve 4. Consumer’s equilibrium Deselect Answer 1 2 3 4 4 3 1 2 2 3 4 1 3 2 1 4 The concept of fiscal deficit implies which of the following? Deselect Answer Revenue and interest receipts minus revenue expenditures. Revenue receipts and recovery of loans and other receipts minus total expenditure. Receipts minus disbursement in capital account. Total receipts minus total expenditure Which one of the following items is included in the capital account of the balance of payment of a country? Deselect Answer Investment income Invisibilities Commercial borrowings Private transfer Match the following List I List II A. Theory of Big Push 1. J.H. Boeke B. Warranted rate of growth 2. Paul Romer C. Social dualism 3. Rosenstein Rodan D. Endogenous growth theory 4. R.F. Harrod Deselect Answer 2 3 4 1 3 1 4 2 3 4 1 2 4 2 3 1 An increase in fiscal spending leads to Deselect Answer a shift of Phillips Curve to the left A shift of Phillips Curve to the right movement along the Phillips Curve such that unemployment rises inflation also rises the movement on the Phillips Curve itself such that unemployment declines and inflation rises The rational expectations hypothesis suggests that the forecasts that people make concerning future inflation rates Deselect Answer consistently over-estimates the actual rate of inflation in the future. are always correct consistently underestimates the actual rate of inflation in the future. are correct on an average but are subject to errors that are distributed randomly. The IRR is the discount rate that equates the project NPV to ____ and benefit-cost ratio to ____. Deselect Answer 1, 0 0,1 0,0 1, 1 Which of the following is not an instrument of capital market with special reference to India? Deselect Answer Equity share Debenture Gold ETF Commercial paper Which of the following is not correct with reference to the service sector of Indian economy? Deselect Answer Service sector has the largest share in the GDP. Service sector has the largest share in the employment Service sector’s growth has been higher than growth of agricultural sector Productivity per worker in service sector is highest. Consider the following statements about the average fixed cost of a firm Its slope is always negative. Its slope is always greater than one. Its slope is always equal to one. Elasticity with respect to output is equal to one. Choose the correct answer from the codes given belowDeselect Answer Only 1 2 and 3 1 and 4 Only 3 Who amongst the following economists treated nature to be niggardly? J.S. Mill David Ricardo Karl Marx Thomas Robert Malthus Choose the correct code:Deselect Answer 1, 2 and 3 2 and 4 3 and 4 2 and 3 Which of the following act as an instrument to help in the borrowing by the government? Repo rate Reverse Repo Rate CRR SLR Choose the correct code:Deselect Answer 1 and 3 Only 4 1 and 4 3 and 4 The public expenditure in India is classified as capital and revenue. Which of the following is/are revenue expenditure? Subsidies Interest payments on public debt Wages and salaries Choose the correct code:Deselect Answer 1 and 2 1 and 3 2 and 3 All of these Which of the following statements is/are correct about Uzawa’s theorem? Deselect Answer The growth rate of output per worker, consumption per worker and capital per worker are equal and constant over time. The production function is linear homogenous. The technical progress is Harrod-neutral only All of the above Global competitiveness report is released by which of the following organisations? Deselect Answer World Trade Organisation World Economic Forum European Union World Bank The frequent farm loan waivers in India may have given rise to the problem of Deselect Answer Debt Overhang Adverse selection Risk aversion Moral Hazard Arrange the following states in descending order according to Maternal Mortality Ratio as per the Special Bulletin of SRS, May, 2018 Assam Bihar Madhya Pradesh Uttar Pradesh Choose the correct code:Deselect Answer 1, 4, 3, 2 2, 4, 3, 1 4, 1, 2, 3 3, 2, 1, 4 Assertion-Reason Assertion: In the P.N. Rosenstein-Rodan’s model, the positive role of indivisibilities in production has been analysed. Reason: Removal of indivisibilities leads to constant returns to scale in production.Deselect Answer Both A and R are true and R is the correct reason of A. Both A and R are true but R is not the correct reason of A. A is true but R is false A is false but R is true. Consider the following statements about a time series of annual observations on sales of a firm for ten years. The series will have seasonal variations. The series will have a secular trend. The series will have cyclical variations. Choose the correct code:Deselect Answer 2 and 3 1, 2 and 3 1 and 2 1 and 3 When the marginal cost is equal to average cost, the slope of the average cost is Deselect Answer Positive Negative Zero Infinite Which of the following is likely to be most inflationary in its impact? Deselect Answer Repayment of public debt Borrowings from the public to finance a budget deficit Borrowings from banks to finance a budget deficit Creating new money to finance a budget deficit. Tax buoyance is expressed as Deselect Answer ETYb = 〖∆T〗^b/∆Y*Y/T^b ETYb = ∆Y/〖∆T〗^b *T^b/Y ETYb = ∆Y/〖∆T〗^b +T^b/Y ETYb = 〖∆T〗^b/∆Y+Y/T^b Consider the following statements Effective demand in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. Notional demand is the demand that occurs when purchasers are not constrained in any market. Which of the above statements is/are correct?Deselect Answer Only 1 is correct Only 2 is correct Both 1 and 2 are correct Neither 1 nor 2 is correct. Which of the following is not a correct feature for the absolute convergence to hold good? Deselect Answer Same population growth rate Same savings propensity Same capital-labour ratio Different capital-labour ratio Which of the following is portrayed in the population pyramid of a country? Deselect Answer Rural-urban distribution of population Young-old distribution of population Gender distribution of population In the last decade, which one among the following sectors has attracted the highest Foreign Direct Investment (FDI) inflow into India? Deselect Answer Telecommunication sector Defence sector Service sector Insurance sector Market failure can occur because of Deselect Answer Imperfect competition Externalities Both A and B Neither A nor B Which of the following is condition of economic viability and technological feasibility of Leontief’s static system? Deselect Answer Marshall-Edgeworth conditions Kuhn-Tucker conditions Hawkins-Simon condition Value of the objective function of primal problem should equal the value of the objective function of the dual of the primal. Match List I with List II: List I (Growth models) List II (Equation) A. Solow 1.∆N/N=∆K/K B. Domar 2. Gw.Cr = s C. Joan Robinson 3. st(k) = (δ+n)k D. Harrod 4. ∆I/I=ασ Deselect Answer Assertion-Reason Assertion: Monetarists disagreed with the Phillips curve analysis. Reason: There are no unique correspondence of %p unemployment rateDeselect Answer Both A and are true and R is the correct explanation of A. Both A and R are true but R is not the correct explanation of A. A is true, but R is false A is false but R is true. Which of the following statements are true about measures of dispersion? The divergence of a set of observation. The concentration of a set of observation. Select the correct answer:Deselect Answer Only 1 Only 2 Both 1 and 2 None of these World Summit on social development was held in the year Deselect Answer 1994 1995 1996 1963 Keynes liquidity preference theory indicates that the demand for money is Deselect Answer negatively related to bond price constant negatively related to interest rate positively related to interest rates Arithmetic mean and harmonic mean includes all values of the data set in its calculation. Deselect Answer True False Partly true None of these A large increase in oil prices, such as the once occurring in 1973 and 1979, will cause Deselect Answer inflation and expansion inflation and recession recession and disinflation expansion and deflation Match the following: List I List II A. Swachh Bharat Abhiyan 1. 2014 B. PMBJP 2. 2015 C. Start-Up India 3. 2016 D. Rashtriya Vayoshri Yojana 4. 2017 Deselect Answer 1 2 3 4 2 3 4 1 4 3 2 1 1 3 4 2 The lowering of bank rate by the Reserve Bank of India leads to Deselect Answer less liquidity in the market more liquidity in the market mobilisation of more deposits by commercial banks no change in the liquidity in the market Which one of the following pairs is correctly matched? Deselect Answer Fiscal deficit – GDP Primary deficit – Money supply Monetised deficit – interest payments Budget deficit – expenditure and receipts on revenue account Bowley’s coefficient of skewness is calculated by following formula: Deselect Answer (Q3 + Q1 – M)/(Q3-Q1) (Q3+Q1-2M)/(Q3+Q1) (Q3+Q1-2M)/(Q3-Q1) (Q3+Q1-3M)/(Q3-Q1) “Economics is what Economists do”. It has been supported by Deselect Answer Richard Jones Comte Gunnar Myrdal Jacob Viner Which of the following statements is true? Deselect Answer Nominal interest rates are procyclical and real interest rates are countercyclical. Nominal interest rates are procyclical and real interest rates are acyclical. Both nominal and real interest rates are procyclical and leading. Both nominal and real interest rates are procyclical and lagging In the Keynesian framework, as long as output is ______, the equilibrium level, unplanned inventory investment will remain, ______ and firms will continue to lower production. Deselect Answer above, negative below, positive below, negative above, positive According to the theory of kinked demand curve, kink occurs at the level where Deselect Answer MR is equal to MC. MC passes through the discontinuous region of MR Point of kink cannot be defined specifically None of the above According to Keynes, which is not a motive behind the demand for money? Deselect Answer Transaction motive Speculative motive Precautionary motive Budget deficit/surplus motive Match the following: List I List II A. Narrow money 1. M3 B. Excess reserve 2. ERr C. C + RR + ER 3. M1 D. Broad money 4. High Powered money Deselect Answer 4 2 1 3 2 3 1 4 3 2 1 4 3 2 4 1 ‘Other liabilities’ of the central government of India include outstandings against which one of the following? Deselect Answer Small saving schemes Securities issued to Industrial Development Bank of India, Unit Trust of India and Nationalised Banks Deposits under the special deposit schemes All of the above Match the following: List I List II A. D = f(P) 1. Consumption function B. S = f(P) 2. Demand function C. C = a + βY 3. Supply function D. R = f(q) 4. Revenue function Deselect Answer 1 2 3 4 3 2 1 4 3 2 4 1 2 3 1 4 Assertion-Reason Assertion: The working of Regional Rural Banks (RRBs) revealed that they eroded their capital base. Reason: Many RRBs are non-viable and have high operating costs.Deselect Answer Both A and R are true and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true, but R is false. A is false, but R is true. Who among the following said that “Money is a temporary abode of purchasing power”? Deselect Answer James Tobin William J. Baumol Irving Fisher Milton Friedman Consider the following statements: Market may fail to develop resulting in a failure to meet a want. Markets may fail to produce and allocate scarce resources in a most efficient manner. Which of the above statements is/are correct?Deselect Answer Only 1 Only 2 Both 1 and 2 None of these Assertion-Reason Assertion: Stagflation can develop due to market imperfections. Reason: Wage flexibility can cause stagflation.Deselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. If a matrix has 8 elements, then which of the following will not be a possible order of the matrix? Deselect Answer 1x8 2x4 4x2 4x4 Assertion-Reason Assertion: According to Peacock-Wiseman hypothesis, public expenditure increases overtime in a step by step manner. Reason: This hypothesis is based on the displacement effect, concentration effect and inspection effect.Deselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. Match the following: List I List II A. Instantaneous adjustment of income with investment spending occurs in 1. MPC is smaller B. Consumption lags income by one period in 2. Increase in investment expenditure is once-for-all. C. Value investment multiplier is zero when 3. static multiplier D. Major portion of multiplier is realised in fewer periods when 4. dynamic multiplier Deselect Answer 3 4 1 2 3 4 2 1 4 3 1 2 2 3 1 4 Match the following: List I List II A. Life-cycle hypothesis 1. Keynes B. Permanent income hypothesis 2. Duessenberry C. Absolute income hypothesis 3. Friedman D. Relative income hypothesis 4. Ando-Modigliani Deselect Answer 4 3 1 2 4 3 2 1 3 2 1 4 3 2 4 1 Consider the following statements: Dumping is used to gain profits from competition in the international market. Dumping is used to expand the horizon of the domestic industries. Dumping does not help in establishing new industrial relation. Which of the given statements is/are correct?Deselect Answer Only 1 Only 2 Only 3 None of these Which of the following statements does not hold true in case of the Keynesian Economics? Deselect Answer Velocity of money is an unstable function of its determinants Labour is subject to money illusion Aggregate supply function tends to become flat at levels of output well below full employment and to become steeper as full capacity is reached. Aggregate supply schedule is vertical and output and employment are completely supply determined. The price elasticity of demand is equal to one for a demand curve which is Deselect Answer horizontal line vertical line rectangular hyperbola downward moving line Assertion-Reason Assertion: Leontief Paradox contradicted Hecksher-Ohlin Theory. Reason: USA exported labour intensive products.Deselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. The rate at which the Central bank discounts the bills of commercial banks is called Deselect Answer Discount rate Bill rate Interest rate Lending rate Which committee recommended tax on agricultural holding in India? Deselect Answer Tandon Committee Raj Committee Kelkar Committee Dantwala Committee Consumption is irreversible is implicit in which of the following hypothesis? Deselect Answer Absolute income hypothesis Relative income hypothesis Life Cycle hypothesis Permanent Income hypothesis Purchasing Power Parity theory was given by Deselect Answer Haberler J.S. Mill J.E. Meade Gustav Cassell Which of the following is not one of the objectives of the tax reforms in India? Deselect Answer Reduction in multiplicity of custom duty rates. Improving tax compliance Widening the tax base Suggesting ways to increase the share of indirect taxes in total tax revenue. In HDI, which one of the following is not taken as an indicator? Deselect Answer Life expectancy Literacy GDP per capita Per capita food consumption Assertion-Reason Assertion: Over the years, the goal of self-reliance has proved to be elusive in the Indian economy. Reason: Balance of Payments problems have been arising due to imports of POL.Deselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. Human Development Index prepared by UNDP is based on some of the following variables: i) Life expectancy at birth ii) Health facilities iii) Per capita income adjusted by purchasing power. iv) Literacy and enrolment percentage Of the above variables:Deselect Answer i,ii and iii are correct. ii, iii and iv are correct i and iii are correct i, iii and iv are correct Assertion-Reason Assertion: In India, more and more farmers are getting pushed out of agriculture. Reason: Their land base is becoming smaller.Deselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. According to Phillips curve, when rate of inflation increases, then rate of: Deselect Answer unemployment also increases unemployment decreases unemployment will remain constant full employment will prevail. Match the following: List I List II A. Investment multiplier 1. R.F. Kahn B. Employment multiplier 2. Milton Friedman C. Restatement of Quantity theory of money 3. A. Laffer D. Supply side economics 4. J.M Keynes Deselect Answer 4 1 2 3 1 2 3 4 4 3 2 1 2 4 1 3 Natural rate of unemployment is the rate of unemployment at which Deselect Answer rate of inflation is stable rate of inflation is unstable rate of inflation is falling rate of inflation is rising Burden of tax on commodity can be shifted totally to consumers if elasticity of demand is Deselect Answer equal to 1 less than one but greater than zero equal to zero greater than 1. Assertion-Reason Assertion: Stratified random sampling is often used for socio-economic surveys. Reason: Social stratification is a social realityDeselect Answer Both A and R are true, and R is the correct explanation of A. Both A and R are true, but R is not the correct explanation of A. A is true but R is false. A is false but R is true. A person who is no longer looking for a job is considered Deselect Answer structurally unemployed frictionally unemployed under-employed none of the above Debt relief to farmers is a part of Deselect Answer plan expenditure non-plan expenditure development expenditure defence expenditure The statement that the compensation principle of welfare economics is capable of giving contradictory results is associated with the name of Deselect Answer T. Scitovsky A. Pareto A. Bergson P.A. Samuelson A temporary increase in marginal tax rate will Deselect Answer increase employment increase output raise the deficit lower output Which of the following canon is associated with Adam Smith? Deselect Answer Canon of elasticity Canon of productivity Canon of certainty Canon of expediency Which is NOT a correct explanation for the need of social cost-benefit approach: Deselect Answer There is a divergence between private benefits and public benefit There is a divergence between private cost and social cost Market prices do not reflect opportunity cost of factors Both public and private sectors co-exist in the economy. Match the following: List I List II A. Centre-periphery thesis 1. Marshall B. Factor proportion theorem 2. Hecksher-Ohlin C. Reciprocal demand 3. Raul Prebisch D. Vent for surplus theory 4. Elssework 5. J. Viner Deselect Answer 3 2 1 5 1 2 4 5 2 1 3 4 5 4 3 2 The concept of ‘money illusion’ was first given by whom? Deselect Answer Milton Friedman Irving Fischer Robertson J.M Keynes Time is Up! Time's up
