UGC NET Mock Test 21 on Economics – 20 Questions for Practice

1. Quasi rent is the reward to a factor of production which is

2. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to

3. Which of the following is not relevant in case of Sweezy’s oligopoly model?

4. According to Mundell in an optimum currency area, the achievement of internal and external balance is possible through

5. Which of the following conditions specify the least cost-output combination?

6. Identify the correct chronological order of the following theories : a. Cambridge version of the quantity theory of money. b. Fisher’s version of the quantity theory of money. c. Tobin’s theory of demand for money. d. Baumol’s theory of demand for inventory.

7. While analyzing the marginal productivity theory of distribution, Clark gave more emphasis on.

8. An agreement between the two countries to maintain a free trade area, a common external tariff, free mobility of capital and labour and degree of unification in government policies and monetary policy is called

9. According to the Loanable Funds Theory, the rate of interest is a function of

10. Identify the correct chronological order of the following : a. Keynes’ consumption function b. Life Cycle hypothesis c. Relative income hypothesis d. Friedman’s permanent income hypothesis

11. Arrange the structure of balance of payments accounts in which these items appear : a. Capital account b. Errors and omissions c. Current account d. Official settlements account

12. State the order of the appointment of the following as chairman of the Finance Commission : a. K.C. Neogy b. K. Brahamanand Reddy c. N.K.P. Salve d. A.K. Chanda

13. Assertion (A) : In the following regression equation Y = a + bX, 'a' shows the autonomous value of Y. Reason (R) : If X = 0, Y = a holds. Hence, a is the minimum value of Y which is independent of any influence of X on Y.

14. Arrange the following summits of SAARC members in order in which these were organized : a. New Delhi b. Bangalore c. Islamabad d. Kathmandu

15. Although a monopolist can charge any price he likes, but does not charge a higher price than his equilibrium price because

16. The sequencing process of Harrod’s model of development is a. Natural growth rate b. Warranted growth rate c. Actual growth rate d. Divergence

17. A general equilibrium is defined as a state in which all economic units maximize their respective objective functions, all prices are simultaneously in equilibrium and all markets are cleared. The statement is

18. Indicate the sequence of the following in terms of the implementation. a. Income Tax b. Expenditure Tax c. Value Added Tax d. Fringe Benefits Tax

19. Identify the correct chronology of stages of Marxian model of economic development. a. Capitalist crisis b. Capital accumulation c. Surplus value d. Materialistic interpretation of history

20. Determine the order in which the following were developed a. Fisher’s F test of significance of differences between the means of more than two samples. b. Gosset’s t-test of difference between the means of two samples. c. Pearson’s correlation coefficient. d. Spearman’s rank correlation coefficient.