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

1. 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 the opportunity cost.

c.This situation also satisfies the consumers.

d.Price is sufficient to cover costs.

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

a.Von Neumann conditions

b.Hawkins-Simon conditions

c.Kuhn-Tucker conditions

d.Bhagwati-Eckaus conditions

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

a.Linear homogeneity

b.Constant Returns to Scale

c.Variable Elasticity of Substitution

d.Unit Elasticity of Substitution

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

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

b.The variance of errors is not constant.

c.The variance of dependent variable is not constant.

d.The errors have non-zero mean.

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

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

c.(iii) only

d.(iii) and (iv) only

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

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

7. 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 and IV are correct.

c.I, II and III are correct.

d.I, II and IV are correct.

8. The order condition is

a.A necessary but not sufficient condition for identification.

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

c.A necessary and sufficient condition for identification.

d.A sufficient but not necessary condition for identification.

9. Backward-bending supply curve of labour suggests that

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

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

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 increases, supply of labour declines.

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

a.Mahalanobis

b.Koopmans

c.Leontief

d.Dantzig

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, III and IV are correct.

b.I and IV are correct.

c.I, II and IV are correct.

d.I and III are correct.

12. Regression coefficient is independent of change in

a.Scale but not of origin

b.None of these

c.Origin but not of scale

d.Both origin and scale

13. 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 true, but (R) is false.

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

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

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

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

a.R.G. Lipsey

b.Neil W. Chamberlain

c.Bevars D. Mabry

d.Carl M. Stevens

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

a.Indira Awas Yojana (IAY)

b.Total Sanitation Campaign (TSC)

c.Bharat Nirman

d.Integrated Low Cost Sanitation Scheme (ILCS)

16. 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.M. Todaro

d.John K. Galbraith

17. The M1 definition of money is

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

b.Currency outstanding and checking deposits

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

d.Currency outside banks and checking deposits

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

a.Qualitative

b.Time Series

c.Panel

d.Cross Sectional

19. The biggest component of reserve money in India is

a.Bankers deposits with RBI

b.Currency in circulation

c.Treasury bills

d.Other deposits with RBI

20. 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.1 and 12

c.2 and 11

d.2 and 10

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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