20 Jun Importent Questions for JRF/NET JULY 2018
Q. Nos. 1-10: Read the following questions and choose the correct answer from the options given below these questions.
1. For downward movement along the iso-quant, MRTS of Labour per unit of capital (MRTSL,K) is given by
(A) – dK/dL
(B) dK/dL
(C) dL/dK
(D) – dL/dK
Answer: (A)
2. Charging a different price in different markets is called
(A) price discrimination
(B) second degree price discrimination
(C) third degree price discrimination
(D) perfect price discrimination
Answer: (A)
3. Which of the following is the most significant in stabilization policy ?
(A) Private investment
(B) Inventory investment
(C) Autonomous investment
(D) Public investment
Answer: (C)
4. The concept of vicious circle of poverty is associated with
(A) Kindleberger
(B) Schumpeter
(C) Ragnar Frish
(D) Gunnar Myrdal
Answer: (D)
5. Solow built his model as an alternative to
(A) Kaldor’s model of growth
(B) Ranis-Fei model of growth
(C) Harrod-Domar model of growth
(D) Meade’s model of growth
Answer: (C)
6. If interest payments are subtracted from gross fiscal deficit, the remainder will be
(A) revenue deficit
(B) gross primary deficit
(C) capital deficit
(D) budgetary deficit
Answer: (B)
7. Which of the following measures of central tendency will be the most appropriate to use if the data relate to rates, proportions and ratios ?
(A) Arithmetic mean
(B) Median
(C) Harmonic mean
(D) Geometric mean
Answer: (D)
8. Opportunity cost version of comparative cost advantage doctrine was introduced by
(A) J.M. Keynes
(B) Kindleberger
(C) Haberler
(D) Karl Marx
Answer: (C)
9. The most popular definition of sustainable development is given by
(A) World Development Report
(B) UNDP Report
(C) Brundtland
(D) IMF Report
Answer: (C)
10. During the planning period, highest growth rate was achieved during
(A) eighth plan
(B) tenth planwww.netugc.com
(C) ninth plan
(D) seventh plan
Answer: (B)
Q. Nos. 11-20 : Read the questions and select the correct option for the answer from the list given below :
11. Labour theory of value was propounded by
a. Adam Smith
b. David Ricardo
c. Ragnar Nurkse, Gunnar Myrdal, R.M. Solow
d. Fei-Rani’s, Ragnar Nurkse
Codes :
(A) a and b
(B) a and c
(C) a, b, c
(D) a, b, c, d
Answer: (A)
12. The features of the classical system are
a. Monetary factors determine output and employment.
b. Self adjusting mechanism of the economy.
c. State action to direct development.
d. Optimization through market in the absence of state control.
Codes :
(A) a and b
(B) a, b, c
(C) b and d
(D) a, b, d
Answer: (C)
13. Concepts of displacement and concentration effect in public expenditure are attributed to
a. A.C. Pigou and J.K. Mehta
b. Alan T. Peacock and Jack Wiseman
c. Kenneth Arrow and Paul A. Samuelson
d. A.R. Prest and I.M.D. Little
Codes :
(A) a and b
(B) b
(C) a, b, c
(D) a, b, c, d
Answer: (B)
14. Human Development Index (HDI) is constructed with reference to
a. Life expectancy at birth, real GDP per capita, gross enrolment ratio, adult literacy rate.
b. Life expectancy at birth, real GDP per capita, combined gross enrolment ratio, adult literacy rate.
c. Life expectancy, GDP per capita, infant mortality rate, literacy rate.
d. GDP per capita, infant mortality rate, literacy rate
Codes :
(A) a and b
(B) a and c
(C) c
(D) a, b, d
Answer: (C)
15. The unbalanced growth model was propounded first by
a. Albert O. Hirschman
b. H.S. Singer and Raul Prebisch
c. Kindelberger and Ragnar Nurkse
d. W.W. Rostow and Paul Streeten
Codes :
(A) a and b
(B) a and c
(C) a and d
(D) a
Answer: (A)
16. Harrod-Domar model of growth is based on the concepts of and their equality
a. Population and productivity growth.
b. Investment and average growth rate of income.
c. Actual, warranted and natural growth rate.
d. Productivity growth and investment growth.
Codes :
(A) a and c
(B) a and d
(C) c
(D) a, b, c
Answer: (C)
17. Factor endowment theory is also known as
a. Modern theory of international trade.
b. Classical theory of international trade.
c. Reciprocal demand theory.
d. Factor proportions theory of international trade.
Codes :
(A) a and b
(B) b and c
(C) a and d
(D) c and d
Answer: (C)
18. Most important theory of increasing public expenditure is associated with
a. Adolph Wagner’s hypothesis
b. Critical limit hypothesis
c. Administrative efficiency hypothesis
d. Stability of income hypothesis
Codes :
(A) a and b
(B) a and c
(C) a
(D) c and d
Answer: (C)
19. Under the Brettonwood system, the long term development assistance was to be provided by
a. IBRD
b. IDA
c. IMF
d. All the above
Codes :
(A) a and b
(B) a, b, c
(C) b and c
(D) d
Answer: (A)
20. The Planning Commission of India has recently announced the poverty line as
a. Rs. 42 per day per person for urban area.
b. Rs. 26 per person per day for rural areas.
c. Rs. 32 per person per day for urban areas.
d. Rs. 32 per day per person for rural areas.
Codes :
(A) a and b
(B) a and c
(C) b and c
(D) c and d
Answer: (B)
Q. Nos. 21-30 : Read the following questions and select the right combination of Assertion (A) and Reason (R) from the codes given below :
21. Assertion (A) : There is a natural tendency to collude under oligopoly.
Reason (R) : Inter-dependence of firms in oligopolistic markets.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
22. Assertion (A) : In short run, the marginal cost of output is the cost of additional labour and materials used in production.
Reason (R) : Materials and labour used in production alone vary in short run.
Codes :www.netugc.com
(A) (A) is correct and (R) is incorrect.
(B) (A) is incorrect, but (R) is correct.
(C) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(D) Both (A) and (R) are incorrect.
Answer: (C)
23. Assertion (A) : Post reform liberal trade policies have stimulated India’s growth.
Reason (R) : Private enterprise got opportunities to contribute to growth of Indian manufacturing industries.
Codes :
(A) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (A)
24. Assertion (A) : Use of goods and services from which one can be excluded are pure private goods.
Reason (R) : Such goods and services are not provided free by the State.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (A)
25. Assertion (A) : ‘A country is poor because it is poor’.
Reason (R) : Income of a poor country is low, so its savings and investment are low. Low investment limits its productive capacity which leads to low output and income.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
26. Assertion (A) : All historical events are the result of a continuous economic struggle between different classes and groups in a society.
Reason (R) : This struggle is because of the conflict between the mode of production and the value attached to the roles of different agents of production.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
27. Assertion (A) : K/L will adjust through time to the equilibrium value of the ratio.
Reason (R) : Technical coefficients of production are fixed.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
28. Assertion (A) : Investment has a demand effect.
Reason (R) : Investment augments the productivity and income in the economy.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, and (R) is not correct.
(D) (A) is incorrect and (R) is correct.
Answer: (A)
29. Assertion (A) : Agriculture is the main source of livelihood of people in
India.
Reason (R) : Measures for agricultural development should be undertaken.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is incorrect explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect and (R) is correct.
Answer: (A)
30. Assertion (A) : In the following regression equation Y = a + bX, ‘a’ shows the autonomous value of Y.
Reason (R) : If X = 0, Y = a holds.
Hence, a is the minimum value of Y which is independent of any influence of X on Y.
Codes :
(A) Both (A) and (R) are correct and (R) is the true explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is incorrect, but (R) is correct.
Answer: (A)
Q. Nos. 31-40 : Read the questions and select the correct sequence from the codes given below :
31. Identify the order of chronological development of the theory of demand.
a. Marshall’s theory of demand
b. Indifference curves
c. Revealed preference theory
d. Weak Preference ordering theory of demand.
Codes :
(A) a, c, d, b
(B) d, b, a, c
(C) a, c, b, d
(D) a, b, c, d
Answer: (D)
32. Identify the correct chronological order of the following theories :
a. Cambridge version of quantity theory of money.
b. Fisher’s version of quantity theory of money.
c. Tobin’s theory of demand for money.
d. Baumol’s theory of demand for inventory.
Codes :
(A) c, d, a, b
(B) b, a, d, c
(C) d, a, b, c
(D) a, b, c, d
Answer: (B)
33. Identify the correct chronological order of the following :
a. Keynes’ consumption function
b. Life Cycle hypothesis
c. Relative income hypothesis
d. Friedman’s permanent income hypothesis
Codes :
(A) d, b, a, c
(B) b, a, c, d
(C) a, c, d, b
(D) c, d, b, a
Answer: (C)
34. Identify the correct chronology of stages of Marxian model of economic development.
a. Capitalist crisis
b. Capital accumulation
c. Surplus value
d. Materialistic interpretation of history
Codes :
(A) b, a, c, d
(B) c, d, b, a
(C) d, c, b, a
(D) c, b, a, d
Answer: (D)
35. The sequencing process of Harrod’s model of development is
a. Natural growth rate
b. Warranted growth rate
c. Actual growth rate
d. Divergence
Codes :
(A) d, c, b, a
(B) c, b, a, d
(C) b, a, d, c
(D) a, d, c, b
Answer: (B)
36. Arrange the following summits of SAARC members in order in which these were organized :
a. New Delhi
b. Bangalore
c. Islamabad
d. Kathmandu
Codes :
(A) a, c, d, b
(B) a, b, c, d
(C) b, d, c, a
(D) c, b, a, d
Answer: (C)
37. Arrange the structure of balance of payments accounts in which these items appear :
a. Capital account
b. Errors and omissions
c. Current account
d. Official settlements account
Codes :
(A) a, b, c, d
(B) c, a, d, b
(C) d, c, b, a
(D) c, d, a, b
Answer: (B)
38. State the order of the appointment of the following as chairman of Finance Commission :
a. K.C. Neogy
b. K. Brahamanand Reddy
c. N.K.P. Salve
d. A.K. Chanda
Codes :
(A) a, c, b, d
(B) a, d, b, c
(C) a, c, d, b
(D) a, b, d, c
Answer: (B)
39. Indicate the sequence of the following in terms of the implementation.
a. Income Tax
b. Expenditure Tax
c. Value Added Tax
d. Fringe Benefits Tax
Codes :
(A) a, c, b, d
(B) a, b, c, d
(C) b, c, d, a
(D) c, d, a, b
Answer: (D)
40. Determine the order in which the following were developed
a. Fisher’s F test of significance of differences between the means of more than two samples.
b. Gosset’s t-test of difference between the means of two samples.
c. Pearson’s correlation coefficient.
d. Spearman’s rank correlation coefficient.
Codes :
(A) a, b, c, d
(B) b, a, c, d
(C) c, b, a, d
(D) d, a, b, c
Answer: (B)
Q. Nos. 41-50 : Read the following questions and match the correct pair from List – I and II. Use the codes given below for answering:
41. List – I List – II
a. Kinked demand curve hypothesis 1. William Baumol
b. Sales maximization model of oligopoly 2. Paul Sweezy
c. Social Welfare Criterion 3. Adam Smith
d. Law of Invisible hand 4. Bergson
Codes :
a b c d
(A) 4 3 1 2
(B) 2 1 4 3
(C) 2 3 1 4
(D) 1 4 3 2
Answer: (B)
42. List – I List – II
a. Psychological Law of Consumption 1. Irving Fisher
b. Time preference theory of interest 2. J.M. Keynes
c. Public Choice View 3. Mundell and Fleming
d. Open Economy IS-LM model 4. Gorden Tullock
Codes :
a b c d
(A) 3 2 4 1
(B) 4 1 3 2
(C) 2 1 4 3
(D) 1 3 4 2
Answer: (C)
43. List – I List – II
a. Mid-day meal scheme 1. 2006
b. Implementation of M-NREGA 2. 1995
c. Cash Reserve Ratio 3. Finance Commission
d. Divisible Taxes 4. Reserve Bank of India
Codes :
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 4 2 3 1
(D) 3 4 1 2
Answer: (B)
44. List – I List – II
a. Monetary Policy 1. Tax Rate
b. Trade Policy 2. Margin Money
c. Credit Policy 3. Imports and Exports
d. Fiscal Policy 4. Bank Rate
Codes :
a b c d
(A) 4 3 2 1
(B) 4 2 3 1
(C) 3 2 1 4
(D) 2 1 4 3
Answer: (A)
45. List – I List – II
a. J.M. Buchanan 1. Canons of Public Expenditure
b. Findlay Shirras 2. Functional Finance
c. R.N. Bhargava 3. Public-Choice Theory
d. A.P. Lerner 4. Federal Finance
Codes :
a b c d
(A) 3 2 1 4
(B) 3 1 4 2
(C) 2 3 1 4
(D) 1 4 3 2
Answer: (B)
46. List – I List – II
a. Organic Composition of Capital 1. Hirschman
b. Doctrine of Natural Law 2. Schumpeter
c. Innovation 3. Marx
d. Doctrine of Unbalanced Growth 4. Adam Smithwww.netugc.com
Codes :
a b c d
(A) 3 4 2 1
(B) 4 3 1 2
(C) 2 1 3 4
(D) 1 2 4 3
Answer: (A)
47. List – I List – II
a. Low Income Equilibrium Trap 1. Karl Marx
b. Poverty Measurement 2. Adam Smith
c. Laissezfair 3. Nelson
d. Industrial Reserve Army 4. Suresh Tendulkar
Codes :
a b c d
(A) 1 2 4 3
(B) 3 4 2 1
(C) 4 3 1 2
(D) 2 1 3 4
Answer: (B)
48. List – I List – II
a. Law of Absolute Cost Advantage 1. Haberler
b. Doctrine of Comparative Cost Advantage 2. Hescher-Ohlin
c. Modern Theory of International Trade 3. Adam Smith
d. Opportunity Cost Principle 4. Ricardo
Codes :
a b c d
(A) 4 2 1 3
(B) 3 4 2 1
(C) 2 3 4 1
(D) 1 4 3 2
Answer: (B)
49. List – I List – II
a. Monetarism 1. R.F. Kahn
b. Employment multiplier 2. T. Havelmo
c. Multiplier effect of balanced budget 3. John Muth
d. Rational expectation hypothesis 4. Milton Friedman
Codes :
a b c d
(A) 2 4 3 1
(B) 4 1 2 3
(C) 1 3 4 2
(D) 3 2 1 4
Answer: (B)
50. List – I List – II
a. Theory of Probability 1. Single value to represent distribution
b. Mean 2. Uncertain events
c. Normal Distribution 3. Mini replica of population
d. Sample 4. Symmetrical with almost total area with in M(mean) +–30(sig, ma)
Codes :
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 4 1 2 3
Answer: (C)
1. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to
(A) Zero
(B) Infinity
(C) Less than one
(D) One
Answer: (B)
2. Although a monopolist can charge any price he likes, but does not charge a higher price than his equilibrium price because
(A) higher price means fall in total revenue.
(B) higher price can be charged only on that segment of firm’s demand curve which is price inelastic implying that the marginal revenue will be negative.
(C) it is inconsistent with profit maximization goal under monopoly.
(D) marginal cost will be negative over the relevant range of output.
Answer: (A)
3. Which of the following conditions specify the least cost-output combination?
(A) PL/Pk = MRTS
(B) PL/Pk = MPL/MPk
(C) MPk/MPL = dL/dK
(D) All the above
Answer: (D)
4. Which of the following is not relevant in case of Sweezy’s oligopoly model?
(A) A price cut by a firm is followed by the price cut by the rival firms.
(B) Price hike is not followed by the rival firms.
(C) Firms do not react to price change made by one of the firms.
(D) Firms react to all kinds of price changes made by the rival.
Answer: (D)
5. Quasi rent is the reward to a factor of production which is
(A) Economic rent in the short run but transfer earnings in the long run.
(B) Transfer earnings in the short run.
(C) Transfer earnings both in the short and long run.
(D) Economic rent both in the short and long run.
Answer: (A)
6. According to the Loanable Funds Theory, the rate of interest is a function of
(A) Investment
(B) Desire to hoard money
(C) Quantity of money
(D) All the above
Answer: (D)
7. While analyzing the marginal productivity theory of distribution,
Clark gave more emphasis on.
(A) Demand for Labour
(B) Supply of Labour
(C) Both Demand as well as Supply of Labour
(D) Profit Maximization
Answer: (A)
8. A general equilibrium is defined as a state in which all economic units maximize their respective objective functions, all prices are simultaneously in equilibrium and all markets are cleared. The statement is
(A) Correct
(B) Not correct
(C) Perfectly correct
(D) None of the above
Answer: (A)
9. According to Mundell in an optimum currency area, the achievement of internal and external balance is possible through
(A) Capital flows
(B) Inflow of funds from abroad
(C) Official development assistance
(D) The mobility of factors
Answer: (D)
10. An agreement between two countries to maintain a free trade area, a common external tariff, free mobility of capital and labour and degree of unification in government policies and monetary policy is called
(A) Common market
(B) Free trade area
(C) Economic union
(D) Customs union
Answer: (C)
11. The core principles of multi lateral trading system are :
I. Non-Discrimination
II. Reciprocity
III. Protectionism
IV. Domestic Safeguards
Select the right code from the list given below :
(A) I, II and IV are correct.
(B) II and III are correct.
(C) II, III and IV are correct.
(D) I and II are correct.
Answer: (A)
12. Assertion (A) : Many developing countries contend that labour standards constitute a barrier to free trade.
Reason (R) : Their competitive advantage in the global economy is cheap labour.
(A) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is the correct explanation of (A).
(C) (A) is false but (R) is true.
(D) (A) is true but (R) is false.
Answer: (B)
13. Arrange in order the WTO ministerials:
I. Geneva
II. Doha
III. Hong Kong
IV. Seattle
(A) II, IV, III, I
(B) III, IV, I, IIwww.netugc.com
(C) IV, II, III, I
(D) I, IV, II, III
Answer: (D)
14. What does Hedging mean?
(A) The acceptance of a foreign exchange risk.
(B) The covering of a foreign exchange risk.
(C) Foreign exchange speculation.
(D) Foreign exchange arbitrage.
Answer: (B)
15. In which terms a unit of SDR was originally denominated?
(A) The world marked value of U.S. Dollar
(B) The gold value equivalent of one US Dollar
(C) The Pound-Sterling
(D) The German Mark
Answer: (C)
16. Which of the following is an adverse effect of Euro Currency Market?
(A) International Capital Market
(B) Decrease in World’s Nominal Money Supply
(C) Integration of International Capital Markets
(D) Meeting BOP Deficit
Answer: (B)
17. Employment Guarantee Scheme was first introduced in
(A) Gujarat
(B) Madhya Pradesh
(C) Maharashtra
(D) Tamil Nadu
Answer: (C)
18. According to Weber’s Theory of
Location, the important factors influencing location are
1. Transport Cost
2. Land Cost
3. Labour Cost
4. Innovation Cost
Choose the correct code:
(A) 1 & 2
(B) 2 & 3
(C) 1 & 3
(D) 1 & 4
Answer: (C)
19. Given below are two statements, one labelled as assertion (A) and the other labelled as Reason (R).
Assertion (A) : India’s Public sector helped in the development of a sound industrial base.
Reason (R) : Public sector is under State control. The role of State in formulating appropriate policies and providing financial and other support has helped the public sector.
(A) (A) is correct, but (R) is wrong.
(B) Both (A) & (R) are correct.
(C) (A) is wrong but (R) is correct.
(D) Both (A) and (R) are wrong.
Answer: (B)
20. Match ‘labour force’ with the appropriate item from amongst the following:
(A) Work force
(B) All educated
(C) Employed + Unemployed
(D) All rural workers
Answer: (C)
21. There are four phases of a business cycle. Identify the correct sequence of the occurrence of these phases:
(A) Recovery, Recession, Expansion, Depression
(B) Recovery, Expansion, Depression, Recession
(C) Depression, Expansion, Recession, Recovery
(D) Recovery, Expansion, Recession, Depression
Answer: (D)
22. The production of ‘finished steel’ in India, since independence, has increased over
(A) 10 times
(B) 20 times
(C) 30 times
(D) 50 times
Answer: (D)
23. The concept of ‘Effective Revenue Deficit’ has been used for the first time in the Union Budget for
(A) 2009 – 10
(B) 2010 – 11
(C) 2011 – 12
(D) 2008 – 09
Answer: (C)
24. Which tax is likely to contribute maximum to the Central Government tax revenue during the year 2011 – 12?
(A) Central Excise Duty
(B) Customs Duties
(C) Income Tax
(D) Corporate Tax
Answer: (D)
25. Gross fiscal deficit of the State Governments is financed by
I. Market Borrowings
II. Printing of Currency
III. Loans from the Central Government
IV. External Borrowings
Find the correct answer from the given code:
Codes:
(A) I, II and III are correct.
(B) II, III and IV are correct.
(C) I and III are correct.
(D) II and IV are correct.
Answer: (C)
26. Match the items of List – I with the items of List – II from the given code:
List – I List – II
i. Canons of Taxation 1. U.K. Hicks
ii. Canons of Public Expenditure 2. Adam Smith
iii. Effective incidence of Tax 3. Findlay Shirras
iv. Benefits received approach of Public Expenditure 4. Erik Lindahl
Codes:
i ii iii iv
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 3 4 1
(D) 4 1 2 3
Answer: (A)
27. Assertion (A): During the financial year 2011-12, the Central Government is not likely to achieve the target of raising Rs. 40,000 crores through disinvestment policy.
Reason (R): Policy of increased public borrowings to bridge the fiscal gap is justified.
In the context of the above two statements, which one is correct from the given?
Codes:
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(C) (A) is correct but (R) is incorrect.
(D) (R) is correct but (A) is incorrect.
Answer: (A)
28. Arrange the following Reports in chronological order from the given codes:
I. Direct taxes Enquiry Committee Final Report
II. Final Report on Rationalizing and Simplification of the Tax Structure
III. Indian Tax Reforms-Report of a Survey
IV. Taxation Enquiry Commission
Codes:
(A) IV, III, II, I
(B) I, II, III, IV
(C) III, I, IV, II
(D) II, III, I, IV
Answer: (A)
29. The most important characteristics of a federation is
(A) Center’s Supremacy over States
(B) Non-correspondence between the functions and resources of the Center and State Governments.
(C) Perfect match between the functions and resources of the Central and State Governments.
(D) None of the above
Answer: (B)
30. In the equation C = C0 + C1 Yd, where C is planned consumption expenditure, Yd is disposable income, C0 is intercept or autonomous consumption (value of C when disposable income is zero), and C1 is marginal propensity to consume; which of the following is the endogenous variable?
(A) C0
(B) C1
(C) C1 Yd
(D) None of the above
Answer: (C)
31. Which of the following statement is false?
(A) In dynamic multiplier, there is lagged relationship between consumption and disposable income.
(B) The dynamic multiplier process can be presented as a decreasing geometric series of change in income in the following period.
(C) A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is smaller.
(D) A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is larger.
Answer: (C)
32. According to which of the following hypotheses, consumption is irreversible?
(A) Absolute Income Hypothesis
(B) Relative Income Hypothesis
(C) Permanent Income Hypothesis
(D) Life Cycle Hypothesis
Answer: (B)
33. Which of the following models of business cycle generates constrained cycles?
(A) Samuelson’s model
(B) Hick’s model
(C) Kaldor’s model
(D) All of the above
Answer: (B)
34. Which of the following is not an assumption of Harrod’s model of growth?
(A) The desired capital output ratio is constant.
(B) Savings are a constant proportion of real income in the economy.
(C) The labour force grows at some exogenously determined constant exponential rate.
(D) Factor prices are flexible in the long run.
Answer: (D)
35. Match the statements given in Group – A with their propounders in Group – B:
Group – A (Statements) Group – B (Propounders)
i. Velocity of money is a stable function of its determinants. 1. Keynesians
ii. Velocity of money is an unstable function of its determinants. 2. Monetarists
iii. Velocity of money is a constant, and does not depend on income and interest rate. 3. Classicals
Choose the correct code:
Codes:
i ii iii
(A) 2 3 1
(B) 1 2 3
(C) 2 1 3
(D) 3 2 1
Answer: (C)
36. A.W. Phillips’ wage-inflation unemployment trade off is based on
(A) Static expectations hypothesis
(B) Adaptive expectations hypothesis
(C) Extrapolative expectations hypothesis
(D) Rational expectations hypothesis
Answer: (A)
37. Suppose the money supply and the price level are constant, and the demand for money is a function of income and interest rate. When the income level increases, there is
(A) an increase in the quantity of money demanded and an increase in the rate of interest.
(B) an increase in the quantity of money demanded and a decrease in the rate of interest.
(C) a decrease in the quantity of money demanded and a decrease in the rate of interest.
(D) a decrease in the quantity of money demanded and an increase in the rate of interest.
Answer: (A)
38. Fiscal reform measures in India included
I. Increasing Tax-GDP ratio
II. Expenditure Management
III. Managing revenue deficit and fiscal deficit
IV. Increasing liquidity in the economy
Find the correct combination from the given codes:
(A) I, II and III are correct.
(B) I and IV are correct.
(C) II, III and IV are correct.
(D) III and IV are correct.
Answer: (A)
39. During the Tenth Five Year Plan, some of the following things were experienced:
I. Services sector witnessed the highest growth rate.
II. Agriculture experienced the lowest growth rate.
III. Rate of growth in the industrial sector was negative.
Which of the aforesaid statements are correct?
(A) I, II and III are correct.
(B) I and II are correct.
(C) I and III are correct.
(D) II and III are correct.
Answer: (B)
40. Assertion (A): Employment growth in the organized sector (both public and private combined) has increased during the period 1994-2008.
Reason (R): There has been relatively faster employment growth in the private sector.
Codes:
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(C) (A) is correct but (R) is incorrect.
(D) (A) is incorrect but (R) is correct.
Answer: (A)
41. According to the provisional figures for 2011 census, which of the following States has the lowest child sex ratio both in rural and urban areas?
(A) Uttar Pradesh
(B) Kerala
(C) Jammu and Kashmir
(D) Haryana
Answer: (D)
42. Of the following, which sector experienced maximum growth rate at 2004-05 prices in India during 2009-10?
(A) Trade, hotels, transport and communication
(B) Manufacturing, construction, electricity, gas and water supply
(C) Financing, insurance, real estate and business services
(D) Agriculture, forestry, fishing, mining and quarrying
Answer: (A)
43. In which of the following years, gross domestic savings as a percentage of GDP was the highest?
(A) 2009 – 10
(B) 2008 – 09
(C) 2007 – 08
(D) 2006 – 07
Answer: (C)
44. Growth process resulting into broad based benefits and providing equality of opportunity to all is referred to as
(A) Faster growth
(B) Inclusive growth
(C) Exclusive growth
(D) Sustained growth
Answer: (B)
45. Which of the following plans witnessed the highest growth rate in India?
(A) Ninth Plan
(B) Eighth Plan
(C) Tenth Plan
(D) Seventh Plan
Answer: (C)
46. For any pair of variables X and Y, two regression equations-one regression of Y on X and other regression of X on Y exist because
I. Tangent of the angle made by two regression equations with each other determines the coefficient of correlation.
II. Regression model does not help in the identification of dependent and independent variables of the equation.
III. Regression and correlation coefficients represent the co-variation of the two variables.
IV. Regression equation represents jointly the value of X and Y.
Select the right code from the following as the answer to the question:
Codes:
(A) I and II are correct.
(B) I and III are correct.
(C) I and IV are correct.
(D) III and IV are correct.
Answer: (A)
47. Which of the following are not associated with the Leontief’s Static Model?
I. Final demand is a stochastic vector.
II. Reciprocal of the Perron- Frobinius root is the maximum growth rate.
III. Input coefficients are the fixed technological parameters.
IV. (I – A – RB)–1 WL = P
Select the correct code from the following:
(A) I, II, III
(B) I, III, IV
(C) I, III www.netugc.com
(D) I, II, IV
Answer: (D)
Answer: (C)
49. In the context of simultaneous equations econometric models, consider the following statements:
I. Identification is a problem to be dealt with before estimation.
II. Order condition is necessary but not a sufficient condition of identification.
III. Two stage least squares method of estimation gives consistent estimators if the equation is under identified.
IV. Under indirect least squares method, least squares method is applied to the reduced form equations.
Use the following code to answer the question:
(A) I and II are correct but III and IV are incorrect.
(B) I, II, III and IV are correct.
(C) I, II and III are correct but IV is incorrect.
(D) I, II and IV are correct but III is incorrect.
Answer: (D)
50. If rxy = 0.3, match the items in list-I with the items in list-II:
List – I List – II
i. –1 to +1 1. 0.3
ii. Correlation coefficient between –X and Y 2. Limits of correlation coefficient
iii. The Square of Correlation Coefficient 3. – 0.3
iv. Coefficient of correlation between –X and –Y 4. Coefficient of Determination
Codes:
i ii iii iv
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 1 2 4
(D) 4 1 2 3
Answer: (B)
51. Match the following from list – I and list – II:
List – I List – II
i. Durbin- Watson ‘d’ Statistics 1. Stationarity
ii. R2 2. Qualitative Effects
iii. Dickey- Fuller test 3. Serial Correlation
iv. Dummy Variable 4. Goodness of fit of regression function
Codes :
i ii iii iv
(A) 1 2 4 3
(B) 2 1 3 4
(C) 4 3 2 1
(D) 3 4 1 2
Answer: (D)
Answer: (C)
53. In Linear Programming problem involving two variables, multiple optimal solutions are obtained when one of the constraints is
(A) the objective function should be parallel to a constraint that forms boundary of the feasible region.
(B) the objective function should be perpendicular to a constraint that forms the boundary of the feasible region.
(C) neither (A) nor (B).
(D) two constraints should be parallel to each other.
Answer: (A)
UGC NET Examination Solved Paper
Answer: (D)
55. For the Cobb-Douglas Production function
Q = A Lα K1 – α.
The elasticity of substitution is
(A) Zero
(B) Infinity
(C) One
(D) A
Answer: (C)
56. Coefficient of determination of a regression model:
1. Explains the proportion of total variation in the values of the dependent variable.
2. It can be used to derive the estimate of the extent of variation in the value of Y that is explained by the random factors.
3. Direction of inter-relation between the dependent and independent variables.
4. It explains the influence of the intercept on the dependent variable.
Select the correct code from the list given below:
(A) 1 2 3 4
(B) 1 2
(C) 2 4 3
(D) 4 1
Answer: (B)
57. The input coefficients/elements of which of the following matrices are interpreted as inputs required directly and indirectly per unit of final demand.
(A) A
(B) (I – A)
(C) (I – A)–1
(D) All of the above
Answer: (C)
58. Total food grains production target for the year 2010-11 has been placed at
(A) 250 million tonnes
(B) 240 million tonnes
(C) 244 million tonnes
(D) 234 million tonnes
Answer: (C)
59. Indicate the year in which National Food Security Mission (NFSM) was launched:
(A) 2001 –02
(B) 2004 – 05
(C) 2010 – 11
(D) 2007 – 08
Answer: (D)
60. Identify sources of agricultural credit in India from the code given below:
1. Commercial Banks
2. Money Lender
3. Regional Rural Bank
4. Small Industries Development Bank of India
Codes :
(A) 1, 2 and 3
(B) 2, 3 and 4
(C) 3, 4 and 1
(D) 1, 2, 3 and 4
Answer: (A)
61. Low productivity for agriculture in India is attributed to
(A) Poor irrigation facilities
(B) Heavy dependence on monsoon
(C) Absence of new technology
(D) All the above
Answer: (D)
62. Quantum of food subsidy was highest in the year
(A) 2009 – 10
(B) 2008 – 09
(C) 2004 – 05
(D) 2001 – 02
Answer: (A)
63. Productivity of Indian agriculture can be enhanced by
1. Increased public investment
2. Increased irrigation facilities
3. Higher support price to the farmers
4. Shifting workers from industry to agriculture
Select the correct answer from the given codes:
Codes:
(A) 1, 2 and 4
(B) 1, 2 and 3
(C) 2, 3 and 4
(D) 3, 4 and 1
Answer: (B)
64. High powered money comprises
(A) Currency held by the public + Cash reserves of banks
(B) Currency held by the public + Demand and time deposits + Cash reserves of banks
(C) Currency held by the public + Cash reserves of banks + Other deposits of RBI
(D) Currency held by the public + other deposits of RBI
Answer: (C)
65. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel – I framework is stipulated at the minimum of
(A) 7%
(B) 9%
(C) 12%
(D) 14%
Answer: (B)
66. Which of the following financial institutions are operating in the money market?
1. Non-banking financial institutions
2. Acceptance Houses
3. Central Bank
4. Stock Exchanges
Select the correct answer from the given codes:
Codes:
(A) 2 and 3
(B) 1 and 3
(C) 1, 2 and 4
(D) 1, 2 and 3
Answer: (D)
67. Assertion (A): The capital base of regional rural banks (RRBs) is found to be weak. Reason (R): Deposit mobilization of RRBs has been inadequate.
From the above two statements, select the correct answer from the given codes.
Code :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(C) (A) is false but (R) is true.
(D) (A) is true but (R) is false.
Answer: (B)
68. Which of the following is broad money (M3) in India?
(A) Currency with public + demand deposits in the banks
(B) Currency + demand deposits + other deposits with RBI
(C) Currency + demand deposits + time deposits
(D) Currency + demand deposits + time deposits + other deposits with RBI
Answer: (D)
69. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11?
(A) Food prices
(B) Prices of manufactured prices
(C) Fuel prices
(D) Metal and mineral prices
Answer: (B)
70. In Joan Robinson’s growth model, capital accumulation depends on
(A) Saving-income ratio
(B) Profit-wage relation and labour productivity
(C) Profit-income ratio and capital productivity
(D) Saving-investment ratio
Answer: (B)
71. In Hicks’ neutral technical progress, the technical progress is
(A) Capital augmenting
(B) Labour augmenting
(C) Both Labour and Capital augmenting
(D) Change in the efficiency and productivity of labour
Answer: (C)
72. In dual gap model, the gap can be filled up by
(A) Raising the level of saving
(B) Export promotion
(C) Steady rate of growthwww.netugc.com
(D) Foreign aid
Answer: (D)
73. The concept of ‘learning by doing’ was given by
(A) J.R. Hicks
(B) Kenneth Arrow
(C) Joan Robinson
(D) Nicholas Kaldor
Answer: (B)
74. Which of the following represents the concept of human capital?
(A) Total human resources
(B) Total population
(C) Human resources gainfully employed in productive activities
(D) All of the above
Answer: (C)
75. Which of the following is disadvantageous to developing countries’ international trade?
(A) Protection
(B) Free trade
(C) Exports of primary and import of manufactured goods
(D) None of the above
Answer: (C)
Q. Nos. 1 – 10: Read the following questions and find correct answer from the choices given below these questions.
1. Marginal Revenue of a Monopoly firm is less than the price. Because:
(A) Demand curve has a positive slope.
(B) Demand curve has a negative slope.
(C) Monopolist incurs losses.
(D) Monopolist is in equilibrium.
Answer: (B)
2. For an inferior goods, income consumption curve and Engles curves are
(A) Positively sloped
(B) Negatively sloped
(C) Are the same
(D) Income consumption curve positively sloped and the Engles curve is negatively sloped
Answer: (B)
3. The classical economists focussed on the role of money as
(A) medium of exchange
(B) medium of distribution
(C) wealth
(D) link between present and future
Answer: (A)
4. If the demand for money is perfectly interest inelastic, the LM schedule will be
(A) Upward sloping
(B) Downward sloping
(C) Horizontal line
(D) Vertical line
Answer: (D)
5. Harrod-Domar model of economic growth is based on the equilibrium between
(A) Income generation and productive capacity creation
(B) Equilibrium between income and consumption
(C) Equilibrium between savings and investment
(D) None of the above
Answer: (A)
6. In calculating the buoyancy of a tax, we consider
(A) Only discretionary changes
(B) Only automatic changes
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer: (C)
7. Which of the following measures of the central tendency suits the data best if the objective is to assess the distribution of values ?
(A) Arithmetic mean
(B) Mode
(C) Median
(D) Kurtosis
Answer: (C)
8. Comparative cost advantage in Ricardo’s international trade theory arises due to
(A) Labour cost differences
(B) Differences in factor endowment
(C) Factor abundance defined in terms of factor prices
(D) All of the above
Answer: (A)
9. In India, in 2004-05 the number of poor persons below poverty line was the highest in the State of
(A) Bihar
(B) Uttar Pradesh
(C) Madhya Pradesh
(D) Rajasthan
Answer: (B)
10. Which of the following is not a component of Bharat Nirman ?
(A) Rural housing
(B) Rural electrification
(C) Agro-based industries
(D) Rural telephony
Answer: (C)
Q. Nos. 11 – 20 : Read the following questions and find out correct answer from the codes given below these questions.
11. A point of ‘Kink’ in the kinked demand curve indicates
I. Price rigidity
II. Quantity rigidity
III. Price flexibility
IV. Quantity flexibility
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) I and IV are correct.www.netugc.com
Answer: (A)
12. Improvement in the BOP deficit may be effected through
I. Import control
II. Export promotion
III. Foreign exchange control
IV. Devaluation
Codes :
(A) I and II are correct.
(B) I, II, III and IV are correct.
(C) II and III are correct.
(D) I, II and III are correct.
Answer: (B)
13. The problem relating to burden of public debt has been dealt by
I. A.P. Learner
II. E.D. Domar
III. A.C. Pigou
IV. A.H. Henson
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) I and IV are correct.
(D) II and III are correct.
Answer: (A)
14. Fiscal policy relates to the Government decision in respect of
I. Taxation
II. Government spending
III. Government borrowing
IV. Public Debt
Codes :
(A) III and IV are correct.
(B) II, III and IV are correct.
(C) I and II are correct.
(D) All the above are correct.
Answer: (D)
15. HDI is entrusted with reference to :
I. Life expectancy at birth
II. Real GDP/per capita
III. Infant mortality
IV. Morbidity
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) All the above
Answer: (D)
16. The doctrine of unbalanced growth was propounded by
I. Hirschman
II. Robert Solow
III. Singer
IV. Ragnar Nurkse
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) I and III are correct.
Answer: (D)
17. Harrod-Domar model of economic growth is based upon
I. Warranted growth rate
II. Investment growth rate
III. Productivity growth rate
IV. Natural growth rate
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) I and IV are correct.
Answer: (D)
18. In Keynesian system speculative demand for money arises because of
I. Uncertainty of future interest rates
II. Unexpected expenditures
III. To bridge the gap between income and eventual expenditure
IV. Relationship between changes in the interest rates and bond prices
Codes :
(A) I and III are correct.
(B) I and IV are correct.
(C) II and III are correct.
(D) III and IV are correct.
Answer: (B)
19. According to Milton Friedman Theory of permanent component of consumption-expenditure depends on
I. Transitory income alone
II. Transitory and permanent income
III. Permanent income alone
IV. Windfall gains
Codes :
(A) I and II are correct.
(B) I and III are correct.
(C) II and IV are correct.
(D) Only III is correct.
Answer: (D)
20. The Planning Commission of India has recently made announcement regarding Poverty Line :
I. Rs. 42 per capita per day in urban area
II. Rs. 26 per capita per day in rural area
III. Rs. 32 per capita per day in urban area
IV. Rs. 32 per capita per day in rural area
Codes :
(A) I and II are correct.
(B) I and III are correct.
(C) II and III are correct.
(D) III and IV are correct.
Answer: (C)
Q. Nos. 21 – 30 : Read the following questions of given Assertions with their Reasoning and find correct answer from the codes given below these questions.
21. Assertion (A) : Giffin’s paradox rarely occurs in the real world.
Reason (R) : Inferior goods are narrowly defined for which suitable substitutes are available.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (A)
22. Assertion (A) : According to the Life Cycle Theory of consumption, an individual level of consumption depends not just on current income but also on long run expected earnings.
Reason (R) : Individuals are assumed to plan a pattern of expenditure based on expected earnings over life time.
Codes :
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are false.
(C) (A) is not correct, but (R) is correct.
(D) Both (A) and (R) are correct and (R) is correct explanation of (A).
Answer: (D)
23. Assertion (A) : Effective demand can be increased by more equitable distribution of wealth.
Reason (R) : Thirty or forty entities with income averaging between 1 lakh and 5 lakhs would create much more effective demand than a single entity having income of 10 lakhs a year.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
24. Assertion (A) : During the period 2004-05 to 2007-08 fiscal consolidation process was witnessed in India.www.netugc.com
Reason (R) : There was buoyancy in tax revenue during this period.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (A)
25. Assertion (A) : K/L ratio will adjust through time in the direction of equilibrium ratio.
Reason (R) : Because the technical coefficient of production are variable.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Answer: (B)
26. Assertion (A) : Financial inclusion is desirable to help weaker sections of society in the country. Reason (R) : Investment activity needs to be promoted to facilitate access to development benefits to masses.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is not correct, but (R) is correct.
(D) (A) is correct, but (R) is not correct.
Answer: (B)
27. Assertion (A) : Stationary state is the end of the process of capital formation.
Reason (R) : Scarcity of natural resources as also capital leads the economy to the stationary state.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is not correct, but (R) is correct.
Answer: (B)
28. Assertion (A) : Investment has also a supply effect.
Reason (R) : Because it raises capacity to produce.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is not correct, but (R) is correct.
Answer: (B)
29. Assertion (A) : Gold standard was finally given up after the Second World War.
Reason (R) : Countries had different rates of inflation.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is not correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is not correct, but (R) is correct.
Answer: (A)
30. Assertion (A) : Disguised unemployment is present in Indian agriculture.
Reason (R) : Marginal productivity of agriculture is close to zero.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is not correct, but (R) is correct.
Answer: (A)
Q. Nos. 31 – 40 : Read the following questions and find the correct sequence from the code given below these questions.
31. Arrange the following in chronological order :
I. CES production function.
II. Cobb-Douglas production function
III. Tronslog production function
IV. The law of variable proportions
Codes :
(A) III, I, IV, II
(B) I, IV, II, III
(C) IV, II, I, III
(D) II, III, I, IV
Answer: (C)
32. Consider the following schemes:
I. EAS
II. TRYSEM
III. JRY
IV. RLEGP
The correct chronological sequence of the launching of these schemes are:
Codes :
(A) II, IV, I, III
(B) IV, II, III, I
(C) IV, III, I, II
(D) II, IV, III, I
Answer: (A)
33. Arrange the origin of money in a sequential order
I. Cheque
II. Metallic money
III. Commodity money
IV. Paper money
Codes :
(A) IV, I, III, II
(B) I, III, II, IV
(C) III, II, IV, I
(D) II, IV, I, III
Answer: (C)
34. Arrange the following theories in the chronological order :
I. Restatement of Quantity Theory
II. Income Theory
III. Quantity Theory
IV. Cash Balance Approach
Select the correct answer from the given codes :
Codes :
(A) I, II, IV, III
(B) III, I, II, IV
(C) IV, III, I, II
(D) III, IV, II, I
Answer: (D)
35. Identify the correct chronological order of the following classical economists :
(A) Adam Smith, Malthus, Ricardo, J.S. Mill
(B) Adam Smith, Ricardo, Malthus, J.S. Mill
(C) Adam Smith, J.S. Mill, Ricardo, Malthus
(D) Adam Smith, Malthus, J.S. Mill, Ricardo
Answer: (B)
36. The sequencing process of Schumpeter model of development is
(A) Swarm like Clusters, Innovation, Bank credit, Breaking circular flow
(B) Breaking circular flow, Innovation, Bank credit, Swarm like Clusters
(C) Innovation, Bank credit, Breaking circular flow, Swarm like Clusters
(D) Bank credit, Innovation, Swarm like Clusters, Breaking circular flow
Answer: (B)
37. Arrange the following theories in order in which they appeared :
I. Comparative Cost Advantage Theory
II. Absolute Cost Advantage Theory
III. Leontief Paradox
IV. Factor Endowment Theory
Codes :
(A) I, III, II, IV
(B) II, III, IV, I
(C) II, I, IV, III
(D) I, IV, II, III
Answer: (C)
38. Arrange the stages of economic growth in a sequential order :
I. The age of high mass consumption
II. The traditional society
III. The take-off stage
IV. The drive to maturity
Codes :
(A) I, III, IV, II
(B) II, IV, I, III
(C) III, I, II, IV
(D) II, III, IV, I
Answer: (D)
39. Identify the sequence of implementation of the following taxes.
Select the correct answer from the given codes :
I. Land Revenue
II. Sales tax
III. MODVAT
IV. Service tax
Codes :
(A) I, II, III, IV
(B) II, IV, I, III
(C) III, II, IV, I
(D) IV, II, I, III
Answer: (A)
40. Identify the correct chronology of the following :
I. Fisher’s test of significance of differences between means of three or more samples.
II. Kendal’s partial rank correlation.
III. Gossest’s T test of significance between means of two samples.
IV. X2 test of goodness of fit of the curve and randomness of the sample values.
Codes :
(A) III, I, II, IV
(B) I, II, III, IV
(C) IV, III, II, I
(D) I, II, IV, III
Answer: (A)
Q. Nos. 41 – 50 : Match the items given in List – I with those in List – II and answer the correct matching option from the codes given below these questions.
41. List – I List – II
I. Behavioural theory of the firm 1. J.B. Clark
II. Marginal productivity theory of distribution 2. Cyert and Mark
III. Double criterion of welfare 3. Kenneth Arrow
IV. Impossibility Theorem 4. Scitovosky
Codes :
I II III IV
(A) 2 1 4 3
(B) 3 2 4 1
(C) 1 4 3 2
(D) 2 1 3 4
Answer: (A)
42. List – I List – II
I. New Classical Economics 1. T.H. Haavelmo
II. Permanent Income Hypothesis 2. Robert Lucas
III. Multiple effect of Balanced Budget 3. N. Gregory Mankiw
IV. New Keynesian Economics 4. Milton Friedman
Codes :
I II III IV
(A) 3 4 1 2
(B) 4 3 2 1
(C) 2 4 1 3
(D) 1 2 4 3
Answer: (C)
43. List – I List – II
I. Invisible Hand 1. Karl Marx
II. Warrier Knight 2. Adam Smith
III. PQLI 3. Schumpeter
IV. Surplus Value 4. Morris D. Morris
Codes :
I II III IV
(A) 1 4 2 3
(B) 2 3 4 1
(C) 1 2 3 4
(D) 4 3 2 1
Answer: (B)
44. List – I List – II
I. Four Sector Model 1. Rosestein- Rodan
II. Critical Minimum Effort Thesis 2. Arthur Lewis
III. Big Push Theory 3. Mahalanobis
IV. Theory of Unlimited Supply of Labour 4. Leibeistein
Codes :
I II III IV
(A) 4 3 2 1
(B) 3 4 1 2
(C) 4 1 3 2
(D) 1 2 4 3
Answer: (B)
45. List – I List – II
I. Food-grains Production 1. Industrial Sector
II. Level of Prices 2. Revenue deficit
III. Industrial Growth 3. Agricultural Sector
IV. Fiscal Indicators 4. Wholesale Price Index
Codes :
I II III IV
(A) 4 2 1 3www.netugc.com
(B) 3 4 2 1
(C) 3 4 1 2
(D) 2 3 4 1
Answer: (C)
46. List – I List – II
I. National Agricultural Policy 1. 2004
II. Marine Fishing Policy 2. 1978
III. New Foreign Trade Policy 3. 2000
IV. Seventh Finance Commission 4. 2004
Codes :
I II III IV
(A) 2 1 3 4
(B) 4 3 1 2
(C) 1 4 2 3
(D) 3 1 4 2
Answer: (D)
47. List – I List – II
I. GATT 1. Managing balance of payments
II. IMF 2. Developmental Finance
III. IBRD 3. Free Trade
IV. UNO 4. Maintenance of peace among nations
Codes :
I II III IV
(A) 2 1 4 3
(B) 3 1 2 4
(C) 2 3 1 4
(D) 4 1 3 2
Answer: (B)
48. List – I List – II
I. Adam Smith 1. Availability doctrine
II. David Ricardo 2. Factors endowment
III. Ohlin 3. Absolute advantage
IV. I.B. Kravis 4. Comparative advantage
Codes :
I II III IV
(A) 1 2 3 4
(B) 3 4 2 1
(C) 2 4 3 1
(D) 4 3 1 2
Answer: (B)
49. List – I List – II
I. Simple Random Sampling 1. Equal probability of selection of an item in a trial
II. Random Sampling 2. Equal probability of each item in all trials
III. Stratified Random Sampling 3. Random selection of first and systematic of the rest
IV. Stratified Systematic Random Sampling 4. Random choice of all items from each stratum
Codes :
I II III IV
(A) 1 2 3 4
(B) 3 1 4 2
(C) 4 3 1 2
(D) 2 1 4 3
Answer: (D)
50. List – I List – II
I. IS-LM Theory 1. Franko Modigliani & Richard Brumberg
II. Consumption Ratchet 2. Lucas & Sargent
III. Life Cycle Hypothesis 3. Hicks and Hanson
IV. Critics of Keynesian Economics 4. James Dussenbery
Codes :
I II III IV
(A) 3 4 1 2
(B) 3 2 1 4
(C) 4 3 1 2
(D) 1 3 4 2
Answer: (A)
1. A solution of Walrasian general equilibrium will exist if and only if,
(A) Condition of fixed point theorem is satisfied.
(B) Pareto’s condition of optimality is satisfied.
(C) Hick’s stability conditions are satisfied.
(D) The condition of Pareto’s law of income distribution is satisfied.
Answer: (A)
2. Select the correct statement of Adding up Theorem.
(A) If income generated by the given output produced during the given period is distributed according to average productivity of all factors, total income will be exhausted.
(B) Total income derived from the output will be exhausted if all factors are paid according to their marginal productivity.
(C) Total income derived from the output will be exhausted if all factors are paid at the same rate.
(D) Total income will be exhausted if all factor rewards are proportional to commodity prices.
Answer: (B)
3. The producer will substitute capital for labour till he reaches that point of isoquant at which,
(A) The price of the good he produces equals wage rate.
(B) Marginal rate of technical substitution equals interest rate.
(C) Marginal rate of technical substitution equals marginal revenue.
(D) Marginal rate of technical substitution equals the ratio of marginal productivity of labour and capital.
Answer: (D)
4. Match the items from the List – I with items in List – II :
List – I List – II
I. Sales maximization as the objective of the firm 1. Morris
II. Growth maximization as objective of the firm 2. Baumol
III. Managerial Utility Function Maximization as objective of the firm 3. Williamson
IV. Sales, profit & growth maximization as objective of the firm 4. Kaldor
Select the correct answer from the following codes :
Codes :
I II III IV
(A) 2 1 3 None
(B) 1 2 3 4
(C) 2 1 4 3
(D) 4 3 2 1
Answer: (A)
5. Match the items in List – I with items in List – II :
List – I List – II
I. Cardinal Utility Theory of Demand 1. Hicks
II. Revealed Preference Theory of Demand 2. A. Marshall
III. Indifference Preference Theory of Demand 3. Neuman & Morgenstern
IV. Utility Index under uncertainty 4. Samuelson
Select the correct answer from the following codes :
Codes :
I II III IV
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 4 1 3
(D) 4 1 3 2
Answer: (C)
6. Arrange the proponents of the marginal productivity theory of factor reward in chronological order :
1. J.B. Clark
2. Marshall
3. Walras
4. Jevons
Select the correct code for correct answer :
Codes :
(A) 1, 4, 2, 3
(B) 4, 3, 1, 2
(C) 1, 3, 4, 2
(D) 2, 1, 4, 3
Answer: (C)
7. Assertion (A) : Non-collusive model of Chamberlin asserts that a stable equilibrium can be reached if each firm charges Monopoly price and equally shares the market demand for their products.
Reason (R) : Reasoning is that the firms recognize mutual interdependence in terms of action and reaction with regard to price decision with the objective of profit maximization which will be realized if prices are determined at a level which equals marginal cost.
Codes :
(A) Both (A) & (R) are correct and (R) is the correct explanation of (A).
(B) (A) is correct, but (R) is not correct.
(C) Both (A) & (R) are correct but (R) is not the correct explanation of (A).
(D) (R) is correct, but (A) is incorrect.
Answer: (A)
8. The revealed preference approach to the derivation of indifference curve
(A) Assumes stability over time of an observed person’s tastes.
(B) Assumes that all people have identical tastes.
(C) Relies on repeated observations of the market behaviour of a single person.
(D) Is correctly described by both (A) and (C).
Answer: (D)
9. Which of the following statements does not hold true in case of the Keynesian Economics ?
(A) Velocity of money is an unstable function of its determinants.
(B) Labour is subject to money illusion.
(C) Aggregate supply function tends to become flat at levels of output well below full employment and to become steeper as full capacity is reached.
(D) Aggregate supply schedule is vertical, and output and employment are completely supply determined.
Answer: (D)
10. Tobin’s q-theory of investment indicates that firms add to their stock of capital when
(A) the replacement value of their real assets exceeds the market value of their financial assets.
(B) the market value of their financial assets exceeds the replacement value of their real assets.
(C) the market value of their real assets exceeds the book value of their financial assets.
(D) the market value of their financial assets exceeds the book value of their real assets.
Answer: (B)
11. When current income includes negative transitory component, relating consumption with current income will produce
(A) an average propensity to consume that is lower than the long run average propensity to consume.
(B) an average propensity to consume that is higher than the average long run propensity to consume.
(C) an average propensity to consume that equals the long run average propensity to consume.
(D) None of the above
Answer: (B)
12. Liquidity trap is a situation when (A) all potential investors expect the rate of interest to rise in future
(B) all potential investors expect the rate of interest to fall in future
(C) natural rate of interest is above the critical rate of interest
(D) demand for money for speculative purpose is interestinelastic
Answer: (A)
13. In Harrod’
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