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

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

a.Linear homogeneity

b.Variable Elasticity of Substitution

c.Unit Elasticity of Substitution

d.Constant Returns to Scale

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

a.The variance of dependent variable is not constant.

b.The errors have non-zero mean.

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

d.The variance of errors is not constant.

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.Gunar Myrdal

b.Arthur Lewis

c.John K. Galbraith

d.M. Todaro

4. 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.1 and 10

b.2 and 11

c.2 and 10

d.1 and 12

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

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

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

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

6. Backward-bending supply curve of labour suggests that

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

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

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

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

7. The order condition is

a.A necessary and sufficient condition for identification.

b.A sufficient but not necessary condition for identification.

c.A necessary but not sufficient condition for identification.

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

8. The biggest component of reserve money in India is

a.Treasury bills

b.Bankers deposits with RBI

c.Other deposits with RBI

d.Currency in circulation

9. The M1 definition of money is

a.Currency outside banks and checking deposits

b.Currency outstanding and checking deposits

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

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

10. Regression coefficient is independent of change in

a.Both origin and scale

b.Scale but not of origin

c.None of these

d.Origin but not of scale

11. 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 and III are correct.

d.I, III and IV are correct.

12. 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 II are correct.

b.I, II and IV are correct.

c.I, II and III are correct.

d.I and IV are correct.

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

a.Kuhn-Tucker conditions

b.Hawkins-Simon conditions

c.Bhagwati-Eckaus conditions

d.Von Neumann conditions

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

b.(iii) and (iv) only

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

d.(iii) only

15. 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.Profit of the firm becomes zero.

c.This situation also satisfies the consumers.

d.Price is sufficient to cover the opportunity cost.

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

a.Dantzig

b.Koopmans

c.Mahalanobis

d.Leontief

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

a.R.G. Lipsey

b.Bevars D. Mabry

c.Neil W. Chamberlain

d.Carl M. Stevens

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

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

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

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

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

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

a.Panel

b.Cross Sectional

c.Qualitative

d.Time Series

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

a.Bharat Nirman

b.Integrated Low Cost Sanitation Scheme (ILCS)

c.Indira Awas Yojana (IAY)

d.Total Sanitation Campaign (TSC)

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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