UGC NET Mock Test 1 on Economics - 20 Questions for Practice

1. Assertion (A): The prices of Government securities in gift-edged market are not formed freely.
Reason (R): The Reserve Bank of India has a monopoly dealer position and the demand for Government securities has a captive nature.

a.(A) is not correct, but (R) is correct.

b.(A) is true, but (R) is false.

c.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

d.Both (A) and (R) are correct and (R) is the correct explanation of (A).

2. Suppose that observations are available on the monthly bond prices of 100 companies for five years. What type of data are these?

a.Time Series

b.Cross Sectional

c.Panel

d.Qualitative

3. The situation of people in villages and towns of strong emigration receiving high amount of remittances has been described as “private affluence and public squalor” by

a.M. Todaro

b.Gunar Myrdal

c.John K. Galbraith

d.Arthur Lewis

4. What is the meaning of the term “heteroscedasticity”?

a.The errors have non-zero mean.

b.The errors are not linearly independent of one another.

c.The variance of dependent variable is not constant.

d.The variance of errors is not constant.

5. Backward-bending supply curve of labour suggests that

a.There is no relationship between wage rate and labour supply.

b.When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.

c.When wage rate declines, supply of labour increases.

d.When wage rate increases, supply of labour declines.

6. Who among the following is not associated with the collective bargaining by the labour with the management?

a.Carl M. Stevens

b.Neil W. Chamberlain

c.Bevars D. Mabry

d.R.G. Lipsey

7. Cobb-Douglas production function Q = ALα K1–α does not possess the characteristics of

a.Constant Returns to Scale

b.Variable Elasticity of Substitution

c.Linear homogeneity

d.Unit Elasticity of Substitution

8. Which of the following estimation techniques are available for the estimation of over-identified systems of simultaneous equations?
(i) OLS
(ii) ILS
(iii) 2SLS
(iv) IV

a.(iii) and (iv) only

b.(ii), (iii) and (iv) only

c.(iii) only

d.(i), (ii), (iii) and (iv)

9. In a multiple regression with two independent variables and 12 observations F value calculated is to be tested. What will be the degrees of freedom for the numerator and denominator in testing procedure?

a.2 and 11

b.1 and 12

c.2 and 10

d.1 and 10

10. The components of the organized sector of the money market
I. Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market

a.I, II and IV are correct.

b.I and IV are correct.

c.I, III and IV are correct.

d.I and III are correct.

11. Regression coefficient is independent of change in

a.None of these

b.Scale but not of origin

c.Both origin and scale

d.Origin but not of scale

12. For a firm in long-run equilibrium producing an allocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?

a.Price is sufficient to cover costs.

b.Price is sufficient to cover the opportunity cost.

c.Profit of the firm becomes zero.

d.This situation also satisfies the consumers.

13. The order condition is

a.A necessary but not sufficient condition for identification.

b.A sufficient but not necessary condition for identification.

c.A condition that is neither necessary nor sufficient for identification.

d.A necessary and sufficient condition for identification.

14. The M1 definition of money is

a.Currency outstanding and checking deposits

b.Currency outside banks and checking deposits

c.Currency outstanding, checking deposits and money market deposit accounts

d.Currency outside banks, checking deposits and traveler's checks

15. For a viable input-output system which conditions are postulated?

a.Kuhn-Tucker conditions

b.Bhagwati-Eckaus conditions

c.Von Neumann conditions

d.Hawkins-Simon conditions

16. Which of the following programmes is not included in rural infrastructure development in India?

a.Integrated Low Cost Sanitation Scheme (ILCS)

b.Bharat Nirman

c.Indira Awas Yojana (IAY)

d.Total Sanitation Campaign (TSC)

17. Which of the following is not correct about a population pyramid?

a.It shows age and sex distribution of a population.

b.An expansive pyramid is narrow at the base but it expands as it moves up towards higher ages.

c.On the right side of the pyramid women’s age structure is shown.

d.Population pyramids can be used to find the economic dependents supported in a particular population.

18. Linear Programming Technique was developed for the first time by

a.Koopmans

b.Mahalanobis

c.Dantzig

d.Leontief

19. Find out the correct answer from the codes given below:
Credit Rating Agencies in India
I. CRISIL
II. ICRA
III. TDICI
IV. CARE

a.I and IV are correct.

b.I, II and III are correct.

c.I, II and IV are correct.

d.I and II are correct.

20. The biggest component of reserve money in India is

a.Treasury bills

b.Bankers deposits with RBI

c.Currency in circulation

d.Other deposits with RBI

UGC NET Mock Test 1 on Economics – 20 Questions for Practice

UGC NET Mock Test 1 on Economics – 20 Questions for Practice

Take Test 1 20 questions for Practice – Economics Test 1

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