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

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

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

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

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

3. 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, II and IV are correct.

b.I, II and III are correct.

c.I and II are correct.

d.I and IV are correct.

4. The biggest component of reserve money in India is

a.Treasury bills

b.Currency in circulation

c.Other deposits with RBI

d.Bankers deposits with RBI

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

a.Bevars D. Mabry

b.Carl M. Stevens

c.R.G. Lipsey

d.Neil W. Chamberlain

6. 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.Panel

c.Cross Sectional

d.Qualitative

7. The order condition is

a.A necessary and sufficient condition for identification.

b.A necessary but not sufficient condition for identification.

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

d.A sufficient but not necessary condition for identification.

8. 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.John K. Galbraith

b.Arthur Lewis

c.Gunar Myrdal

d.M. Todaro

9. 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.Profit of the firm becomes zero.

b.Price is sufficient to cover costs.

c.This situation also satisfies the consumers.

d.Price is sufficient to cover the opportunity cost.

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

a.Constant Returns to Scale

b.Linear homogeneity

c.Variable Elasticity of Substitution

d.Unit Elasticity of Substitution

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

a.Dantzig

b.Leontief

c.Koopmans

d.Mahalanobis

12. Backward-bending supply curve of labour suggests that

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

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

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

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

13. Regression coefficient is independent of change in

a.None of these

b.Scale but not of origin

c.Origin but not of scale

d.Both origin and scale

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

a.The variance of errors is not constant.

b.The variance of dependent variable is not constant.

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

d.The errors have non-zero mean.

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

a.Bharat Nirman

b.Indira Awas Yojana (IAY)

c.Total Sanitation Campaign (TSC)

d.Integrated Low Cost Sanitation Scheme (ILCS)

16. 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 10

c.2 and 10

d.1 and 12

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

a.Bhagwati-Eckaus conditions

b.Hawkins-Simon conditions

c.Von Neumann conditions

d.Kuhn-Tucker conditions

18. The M1 definition of money is

a.Currency outside banks and checking deposits

b.Currency outstanding and checking deposits

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

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

19. 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

20. 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 and III are correct.

b.I, II and IV are correct.

c.I, III and IV are correct.

d.I and IV are correct.

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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