UGC NET Mock Test 12 on Economics – 20 Questions for Practice

1. Assertion (A): Compared to the individual supply curve, the aggregate supply curve is more elastic.
Reason (R): There is a possibility of moving between being out of labour force and being in labour force.
Choose the correct answer out of the following options.

2. Put the following in chronological order on the basis of development:
i. Law of Demand
ii. Revealed Preference Analysis
iii. Indifference Curve Analysis
iv. Law of Diminishing Marginal Utility

3. Assertion (A): In the short run, under perfect competition, given the market demand and market supply, the industry is in equilibrium at that price which clears the market.
Reason (R): In the long run all the firms in the industry earn profit.

4. In whose growth model entrepreneur’s significance is pivotal?

5. It is often true that as the economy begins to recover from a recession, the unemployment rate rises because

6. The locus of Pareto Optimality in Production and Consumption is given by _____

7. The cost incurred by a firm in hiring labour is called _____

8. Assertion (A): There is no incentive for a profit maximizing producer to supply public goods.
Reason (R): If he produces it, he is unable to exclude people from consuming it and hence, he cannot charge a price.

9. The premise, that benefits of economic growth will reach all sections of the population is called

10. The negative relationship between the gap between actual GDP and its trend value and the difference between actual unemployment rate and its equilibrium value is called

11. T.W. Schultz has given the following ratios in relation to education for economic growth :

12. The classical model of economic development emphasises

13. Monetised deficit means

14. Assuming the life cycle hypothesis, let a person start working when he is 20 years old, works until the age of 60 and expects to die at the age of 70. If this person earns say Rs. 1.50 lac annually when he is 20-30 years, Rs. 2 lac annually when he is 30-45 years, and Rs. 3 lac annually when he is 40- 60 years, then his life time average propensity to consume is

15. The condition of Pareto Optimality holds correct under ______

16. Which States/U.Ts. have been placed at the first three places in Gender Development Index List 2006 made by the Government of India?

17. Which one of the following is short period debt meant to meet current needs, that is filling a temporary gap in budgets?

18. The distribution of the burden of paying taxes is called ______

19. What changes due to economic growth?

20. If the monopolist incurs loss in the short run, then in the long run
A. he will go out of business
B. he will stay in business
C. he will break even
D. any of the above is possible