UGC NET Mock Test 10 on Economics – 20 Questions for Practice

1. Given the two regression lines estimated from given data as under:
Y = 4 + 0.4X
X = –2 + 0.9Y
Then coefficient of correlation between X and Y will be _____

2. In the Paul Sweezy Model of Oligopoly in the Kinked Demand Curve, the point of kink represents _______

3. The value of χ2 in a 3 × 5 contingency table is computed as 8.0. The Null hypothesis of no association will be tested at 5% level of significance, if this value is less than or equal to the value of χ2 from the table at __ degrees of freedom

4. Which of the following is true?
a. Indifference curves slope downward from left to right.
b. Indifference curves slope downward from right to left.
c. Indifference curves are convex to the point of origin of the two axes.
d. Indifference curves never intersect each other.

5. A major portion of the multiplier effect is realized in fewer periods when marginal propensity to consume is ______

6. Which of the following satisfies time reversal test but not factor reversal test?

7. Which of the following statements is false?

8. The optimum capital stock is achieved when the user cost of capital is equal to _____

9. The endogenous growth theory seeks to provide an explanation for which of the following determinants of growth that the Solow’s model did not explain?

10. Which one of the following is not an assumption of linear programming?

11. If the economy is operating at potential GDP, an increase in money supply will lead to

12. Which of the following is true in the case of the orthodox (early) Keynesians?
1. Interest elasticity of demand for money is extremely high.
2. Interest elasticity of demand for money is low.
3. Changes in the quantity of money do not have important predictable effects on the level of economic activity.
4. Demand for money is unstable.

13. ‘Multidimensional Poverty Index’ (MPI) is a new index to be included in

14. Which is the better measure of welfare?

15. The Model of Managerial Enterprise is associated with ____

16. Which is a non-probability based sampling method?

17. Assertion (A): Consumer Surplus is the difference between the potential price and actual price.
Reason (R): There exists an inverse relationship between the price and consumer surplus.

18. Which of the following statements are true?
1. Increased government spending affects aggregate spending more quickly than does an increase in money supply.
2. An increase in aggregate demand has no effect upon real output when aggregate supply is vertical.
3. An increase in government spending always crowds out an equal amount of private sector interest sensitive spending.
4. Increased government spending affects aggregate supply less quickly than does an increase in money supply.

19. Assertion (A): The long run cost curve is L shaped rather than U shaped.
Reason (R): The new technique of production of large plants reduces the total cost per unit of output in the long run.

20. Which of the following year of the 11th Five Year Plan registered the highest GDP growth rate?