UGC NET Mock Test 17 on Economics – 20 Questions for Practice

1. Improvement in the BOP deficit may be effected through
I. Import control
II. Export promotion
III. Foreign exchange control
IV. Devaluation

2. Assertion (A) : Effective demand can be increased by a more equitable distribution of wealth.
Reason (R) : Thirty or forty entities with income averaging between 1 lakh and 5 lakhs would create much more effective demand than a single entity having income of 10 lakhs a year.

3. Assertion (A) : Giffin’s paradox rarely occurs in the real world.
Reason (R) : Inferior goods are narrowly defined for which suitable substitutes are available.

4. A point of ‘Kink’ in the kinked demand curve indicates
I. Price rigidity
II. Quantity rigidity
III. Price flexibility
IV. Quantity flexibility

5. Comparative cost advantage in Ricardo’s international trade theory arises due to _____

6. Fiscal policy relates to the Government decision in respect of
I. Taxation
II. Government spending
III. Government borrowing
IV. Public Debt

7. Which of the following is not a component of Bharat Nirman?

8. Assertion (A) : According to the Life Cycle Theory of consumption, an individual level of consumption depends not just on current income but also on long run expected earnings.
Reason (R) : Individuals are assumed to plan a pattern of expenditure based on expected earnings over a lifetime.

9. According to Milton Friedman Theory of permanent component of consumption, expenditure depends on
I. Transitory income alone
II. Transitory and permanent income
III. Permanent income alone
IV. Windfall gains

10. In calculating the buoyancy of a tax, we consider

11. Harrod-Domar model of economic growth is based on
I. Warranted growth rate
II. Investment growth rate
III. Productivity growth rate
IV. Natural growth rate

12. The doctrine of unbalanced growth was propounded by
I. Hirschman
II. Robert Solow
III. Singer
IV. Ragnar Nurkse

13. Which of the following measures of the central tendency suits the data best, if the objective is to assess the distribution of values?

14. HDI is entrusted with reference to :
I. Life expectancy at birth
II. Real GDP/per capita
III. Infant mortality
IV. Morbidity

15. Assertion (A) : During the period 2004-05 to 2007-08, fiscal consolidation process was witnessed in India.
Reason (R) : There was buoyancy in tax revenue during this period.

16. In Keynesian system, speculative demand for money arises because of
I. Uncertainty of future interest rates
II. Unexpected expenditures
III. To bridge the gap between income and eventual expenditure
IV. Relationship between changes in the interest rates and bond prices

17. In India, in 2004-05, the number of poor persons below poverty line was the highest in the state of ____.

18. The Planning Commission of India has recently made an announcement regarding Poverty Line :
I. Rs. 42 per capita per day in urban area
II. Rs. 26 per capita per day in rural area
III. Rs. 32 per capita per day in urban area
IV. Rs. 32 per capita per day in rural area

19. Harrod-Domar model of economic growth is based on the equilibrium between

20. The problem relating to burden of public debt has been dealt by
I. A.P. Learner
II. E.D. Domar
III. A.C. Pigou
IV. A.H. Henson