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

1. Monetised deficit means

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. 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

4. 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.

5. 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

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

7. The distribution of the burden of paying taxes 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 cost incurred by a firm in hiring labour is called _____

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

11. The classical model of economic development emphasises

12. The condition of Pareto Optimality holds correct under ______

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

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

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

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

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

18. 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

19. What changes due to economic growth?

20. 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.