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

1. Given below are two statements, one labelled as assertion (A) and the other labelled as Reason (R). Assertion (A) : India’s Public sector helped in the development of a sound industrial base. Reason (R) : Public sector is under State control. The role of State in formulating appropriate policies and providing financial and other support has helped the public sector.

2. Gross fiscal deficit of the State Governments is financed by I. Market Borrowings II. Printing of Currency III. Loans from the Central Government IV. External Borrowings Find the correct answer from the given code:

3. Employment Guarantee Scheme was first introduced in

4. Which of the following is an adverse effect of Euro Currency Market?

5. According to Weber’s Theory of Location, the important factors influencing location are 1. Transport Cost 2. Land Cost 3. Labour Cost 4. Innovation Cost Choose the correct code:

6. There are four phases of a business cycle. Identify the correct sequence of the occurrence of these phases:

7. Arrange the following Reports in chronological order from the given codes: I. Direct taxes Enquiry Committee Final Report II. Final Report on Rationalizing and Simplification of the Tax Structure III. Indian Tax Reforms-Report of a Survey IV. Taxation Enquiry Commission

8. The most important characteristics of a federation is

9. Assertion (A) : Many developing countries contend that labour standards constitute a barrier to free trade. Reason (R) : Their competitive advantage in the global economy is cheap labour.

10. Match ‘labour force’ with the appropriate item from amongst the following:

11. What does Hedging mean?

12. According to which of the following hypotheses, consumption is irreversible?

13. In the equation C = C0 + C1 Yd, where C is planned consumption expenditure, Yd is disposable income, C0 is intercept or autonomous consumption (value of C when disposable income is zero), and C1 is marginal propensity to consume; which of the following is the endogenous variable?

14. In which terms a unit of SDR was originally denominated?

15. Assertion (A): During the financial year 2011-12, the Central Government is not likely to achieve the target of raising Rs. 40,000 crores through disinvestment policy. Reason (R): Policy of increased public borrowings to bridge the fiscal gap is justified. In the context of the above two statements, which one is correct from the given?

16. The core principles of multilateral trading system are : I. Non-Discrimination II. Reciprocity III. Protectionism IV. Domestic Safeguards Select the right code from the list given below :

17. The production of ‘finished steel’ in India, since independence, has increased over

18. Which of the following statements is false?

19. Which tax is likely to contribute maximum to the Central Government tax revenue during the year 2011–12?

20. The concept of ‘Effective Revenue Deficit’ has been used for the first time in the Union Budget for