UGC NET 2015 Dec Economics Paper 2
Q. 1 Consider the following statements
I.According to the keynes , as income rises ,lower proportion of income is spent on
consumption
II.According to Kunzels, as income rises average propensity to save remains fairly stable and constant
Of the above which statements are correct ?
A. Both I and II are true
B. Neither I and II are true
C. Only I is correct
D. Only II is correct
Q. 2 The marginal Propensity to consume (MPC) is eqaul to Average Propensity to consume (APC) for all levels of income (Y),the correct corresponding consumption (C) function will be:
A. C=a+bY
B. C=a +b/Y
C. C=bY
D. C=bY²
Q. 3 Transfer payments by the government are not included in the net domestic product because :
A. These are gifts from government to the recepients
B. They are not counted as commodities
C. No corresponding production of goods and services has taken place to match such
payments
D. There maybe leakages in payments
Q. 4 Philips curve sets up relation between :
A. Taxes and inflation
B. inflation and employment
C. money supply and aggregate demand
D. price and cost of production
Q. 5 If economy is operating at potential GDP ,an increase in money supply will lead to
A. Stragflation
B. Stuctural inflation
C. Demand pull inflation
D. Cost push inflation
Q. 6 In the long sum , the transitory consumption will :
A. Be infinity
B. Remain unchnaged
C. Decline but will remain positive
D. Be Zero
Q. 7 According to keynes ,investment demand depends on which of the following two factors ?
a.Rate of interest
b. income of consumer
c.marginal efficiency of capital
d.marginal propensity to consume
A. a and d
B. b and d
C. a and c
D. c and d
Q. 8 For the demand function D= P(p) and supply function S=S(p) , the excess demand brings about market eqiulibrium in which of the following situations ?
A. dE(p)/dp>0
B. dE(p)/dp<0
C. dE(p)/dp=0
D. dE(p)/dp=∞
Q. 9 Consider the following statements :
a.Profit maximization by the producer
b.Cournouts deploy equilibrium
Which of these appropriate examples of Nash Equilibrium ?Answer from the code below
A. only a
B. only b
C. both a and b
D. neither a nor b
Q. 10 In which of the following market situations /forms, firms are able to maximise profits ?
A. price leardership
B. cartel
C. at the kink point
D. monopolistic competition
Q. 11 Consider the following factors in determine of wage :
a. Demand for supply and labour
b.MRP of labour = marginal wage
c.MRP of labour =Average productivity of labour
d.MRP= average wage
Which of the above codes is true ?
A. a and b
B. c and d
C. a and c
D. a and d
Q. 12 In the context of a staright line demand curve touching both the axes , which one of the following is correct ? the demand is elastic :
A. below the mid -point
B. above the mid -point
C. at the mid -point of curve
D. throughtout the length of the demand curve
Q. 13 Slutsky equation deals with decomposition of
A. price effect in substitution and income effects
B. goods into superior and inferior goods
C. goods into necessities and luxuries
D. consumer and producer supplies
Q. 14 A discriminitating monopolist will charge a higher price in the market in which the price elasticity of :
A. demand is greater
B. supply is smaller
C. supply is greater
D. demand is smaller
Q. 15 Inclusive growth of objectives was given for the first time in which plan of india ?
A. 9th five year plan
B. 10th five year plan
C. 11th five year plan
D. 12th five year plan
Q. 16 Match the following
A. (1)
B. (2)
C. (3)
D. (4)
Q. 17 Which of the following variables factors are used in constructing human development index of india ?
a. life expectency at birth
b.Real GDP per capita
c.morbidity
A. All the three above
B. Both a and b
C. both b and c
D. both a and c
Q. 18 Which of the following is credited with introduction of LPG model of economic development in India ?
A. Dr.C .Rangarajan
B. Dr. Montek singh alhuwalia
C. Dr. Amartya sen
D. Dr.Manmohan singh
Q. 19 Which one of the following models explains the paradox pertaining to rural – urban migration in the context of rising urban employment ?
A. solow model
B. lewis model
C. vakil and brhmanand model
D. todaro model
Q. 20 In Harrod model of growth ,if warranted rate of growth ,if warranted rate of growth is below the natural rate of growth then it is possible to maintain steady growth with :
A. continously increasing unemployment
B. a constant rate of unemployemnt
C. continously decreasing unemployement
D. none of the above
Q. 21 Report of the task force on the implementation of fiscal responisbility and budget management act,headed by kelkar committee suggests some points given below
I.Fiscal deficit to be abolished by 2008-09
II.Revenue deficit should be 3% of GDP
which of the above statements is correct ?
A. Only I
B. Only II
C. Both I and II
D. Neither I nor II
Q. 22 Tobin tax is a tax on :
A. transactions in the share market
B. transactions in the money market
C. transactions in the commodity market
D. transactions in the foriegn exchange market
Q. 23 Budget incidence refers to :
A. the effect of both government expenditure and tax policies on the distribution of
economies
B. the effect government expenditure on the allocation of taxes
C. the tax policies on the distribution on income and wealth in the private sector
D. none of the above
Q. 24 In case of deficit of budget , when the deficits are covered through taxes ,that budget is called :
A. unbalanced budget
B. surplus budget
C. balanced budget
D. none of these
Q. 25 Match the following
A. (1)
B. (2)
C. (3)
D. (4)
Q. 26 Efficinecy reequires that the production of pure public goods be undertaken to the point where ?
A. the sum of marginal private benefits is exactly equal to the marginal social cost of
production
B. the marginal private benefit is exactly equal to the marginal social cost of production
C. the marginal social cost exceeds the sum of the marginal private benefits
D. none of the above
Q. 27 Which of the following pairs is not correctly matched
A. Rekhi committee : simplification of export and import procedures
B. Namjundappa committee :Railway fare
C. Rangarajan committee :Balance of payments
D. Goiporia committee : Banking service improvements
Q. 28 Consider the following statements :
I. The repo rate is the rate at which other banks borrow from the reserve bank of India
II.A value of 1 for gini coeffiecient in a country implies that there is perfectly equality in income distribution
Which of the following is correct ?
A. II only
B. I only
C. Both I and II
D. Neither I and II
Q. 29 Retail banking is to provide banking services :
A. only to individual customers in an integrated manner
B. entirely to agricultural sector only
C. only to self help group for their survival
D. none of the above
Q. 30 Labour market reforms aim at :
A. job security
B. minimum wage
C. labour market flexibillity
D. employment insurance
Q. 31 Jan -Dhan yojna concerns :
A. credit
B. tax payment
C. bank deposit
D. insurance premium
Q. 32 Which of the following does not does not represent the features of Indian labour market ?
A. Disguised unemployement ;lack of skills ;lack of mobility
B. Disguised unemployement; perfect mobility ; lack of skills
C. Disguised unemployement; perfect mobility ;migrative labour
D. poverty; illiteracy ;homogenity
Q. 33 The Geometric mean of four numbers 2,X,16,32 is 8 .What is the value of x?
A. 2
B. 4
C. 6
D. 8
Q. 34 If mean = 28 and mode = 25 the value of median will be :
A. 27
B. 29
C. 24
D. 25
Q. 35 If the probability of solving a statistical problem by A is 1/4 and B is 1/3 , when a problem is given to them ,probability that the problm will be solved is ?
A. 1/2
B. 7/12
C. 1/12
D. 2/3
Q. 36 Type -I error is defined as
A. Reject null-hypothesis when it is false
B. Reject null-hypothesis when it is true
C. Accept null-hypothesis when it is true
D. Accept null-hypothesis when it is false
Q. 37 Given that √xy =0.6, σᵧ = 50, σₓ = 10, x̅ = 30 and ȳ = 140, the correct regression of Y on X is given by
A. Y = 50 + 3X
B. Y = 110 + 0.6X
C. Y = 140 + 3X
D. Y = 140 – 3X
Q. 38 Which one of the following is not a method of sampling?
A. systematic sampling
B. Quota sampling
C. Snowball sampling
D. large sampling
Q. 39 Growth in software in industry in india can be best explained by:
A. Porter’s approach
B. Recordo’s approach
C. Vernon;s approach
D. Bella Balassa’s approach39
Q. 40 The form of commodity terms of trade is most closely related to:
A. Laspeyre’s index number
B. Paasche;s index number
C. edgworth marshall index number
D. fisher’s index number
Q. 41 If the foreign offer curve has the unitary elasticity ,then the optimum tariff will be
A. unity
B. infinity
C. zero
D. -1
Q. 42 An over valued indian rupee in the foreign exchange market will have which one of the following consequences ?
A. Make imports cheaper and exports costiler
B. Make imports costlier and exports cheaper
C. give protection to domestic industry against foreign competency
D. will improve balance of payments
Q. 43 Which of the following were not addressed in urugvay round?
A. migration
B. IPRs
C. services
D. tariff
Q. 44 The terms of trade refers to :
A. the export of import expenditure over export earnings
B. trade argument between 2 nations
C. the ratio between export and import prices
D. the terms and conditions on which a country is offered loan in the event of BOP
difficulties
Q. 45 Plan holiday in Indian planning is identified with the period :
A. 1966- 69
B. 1979-81
C. 1985-87
D. 1991- 93
Questions: 46 – 50
In questions 46- 50 2 statments are labelled as Assertion (A) and Reason (R) .In the context of 2 statements which one of the following is correct ?
1 .Both A and R are true , R is the correct explaination of A.
2. Both A and R are true , R is not the correct explaination of A.
3. A is true , R is false
4. A is false , R is true
Q. 46 Assertion :Pareto optimality criterion cannot be used alone to measure welfare level of the people
Reason :The concept Pareto optimality fails in externalities , public goods and missing markets
A. 1
B. 2
C. 3
D. 4
Q. 47 Assertion : APC can never be zero while it can be 1.
Reason : Consumption expenditure will always be positive even if income is zero
A. 1
B. 2
C. 3
D. 4
Q. 48 Assertion :the indegenous growth theory examines production function that shows increasing returns
Reason: There is specialization and investment in knowledge capital
A. 1
B. 2
C. 3
D. 4
Q. 49 Assertion : on a bell shaped curve the value of mean , mode , median would be identical
Reason :There is no skewness in such a curve
A. 1
B. 2
C. 3
D. 4
Q. 50 Assertion : competition act of 2002 came into a force and MRTP act was repealed
Reason : MRTP act was too restructive and curtailed fair competition in the market
A. 1
B. 2
C. 3
D. 4
| Answer Sheet |
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| Question | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Answer | A | C | C | B | C | D | C | B | B | D |
| Question | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| Answer | A | C | A | D | C | C | B | D | D | A |
| Question | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |
| Answer | D | D | A | C | B | A | A | B | A | C |
| Question | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 |
| Answer | C | B | B | A | A | B | D | D | A | A |
| Question | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 |
| Answer | B | A | A | C | A | B | A | A | B | A |