UGC NET Mock Test 22 on Economics - 20 Questions for Practice

1. The features of the classical system are a. Monetary factors determine output and employment. b. Self adjusting mechanism of the economy. c. State action to direct development. d. Optimization through market in the absence of state control.

a.a, b, d

b.b and d

c.a, b, c

d.a and b

2. Assertion (A) : Agriculture is the main source of livelihood of people in India. Reason (R) : Measures for agricultural development should be undertaken.

a.Both (A) and (R) are correct, but (R) is incorrect explanation of (A).

b.(A) is correct, but (R) is incorrect.

c.Both (A) and (R) are correct and (R) is the correct explanation of (A).

d.(A) is incorrect and (R) is correct.

3. Assertion (A) : There is a natural tendency to collude under oligopoly. Reason (R) : Interdependence of firms in oligopolistic markets. Codes :

a.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

b.Both (A) and (R) are correct, and (R) is the correct explanation of (A).

c.(A) is correct, but (R) is incorrect.

d.(A) is incorrect, but (R) is correct.

4. Factor endowment theory is also known as a. Modern theory of international trade. b. Classical theory of international trade. c. Reciprocal demand theory. d. Factor proportions theory of international trade.

a.c and d

b.a and d

c.a and b

d.b and c

5. Assertion (A) : K/L will adjust through time to the equilibrium value of the ratio. Reason (R) : Technical coefficients of production are fixed. Codes :

a.(A) is correct, but (R) is incorrect.

b.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

c.(A) is incorrect, but (R) is correct.

d.Both (A) and (R) are correct and (R) is the correct explanation of (A).

6. Assertion (A) : Post reform liberal trade policies have stimulated India’s growth. Reason (R) : Private enterprise got opportunities to contribute to the growth of Indian manufacturing industries.

a.(A) is incorrect, but (R) is correct.

b.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

c.Both (A) and (R) are correct, and (R) is the correct explanation of (A).

d.Both (A) and (R) are incorrect.

7. During the planning period, the highest growth rate was achieved during

a.seventh plan

b.eighth plan

c.tenth plan

d.ninth plan

8. The Planning Commission of India has recently announced the poverty line as a. Rs. 42 per day per person for urban area. b. Rs. 26 per person per day for rural areas. c. Rs. 32 per person per day for urban areas. d. Rs. 32 per day per person for rural areas.

a.b and c

b.a and c

c.c and d

d.a and b

9. Assertion (A) : ‘A country is poor because it is poor’. Reason (R) : Income of a poor country is low, so it's savings and investment are low. Low investment limits its productive capacity which leads to low output and income.

a.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

b.Both (A) and (R) are correct and (R) is the correct explanation of (A).

c.(A) is incorrect, but (R) is correct.

d.(A) is correct, but (R) is incorrect.

10. Assertion (A) : Investment has a demand effect. Reason (R) : Investment augments the productivity and income in the economy. Codes :

a.Both (A) and (R) are correct and (R) is the correct explanation of (A).

b.(A) is correct, and (R) is not correct.

c.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

d.(A) is incorrect and (R) is correct.

11. Concepts of displacement and concentration effect in public expenditure are attributed to a. A.C. Pigou and J.K. Mehta b. Alan T. Peacock and Jack Wiseman c. Kenneth Arrow and Paul A. Samuelson d. A.R. Prest and I.M.D. Little

a.a, b, c

b.a and b

c.b only

d.a, b, c, d

12. The most popular definition of sustainable development is given by

a.UNDP Report

b.World Development Report

c.IMF Report

d.Brundtland

13. Assertion (A) : In the short run, the marginal cost of output is the cost of additional labour and materials used in production. Reason (R) : Materials and labour used in production alone vary in the short run. Codes :

a.Both (A) and (R) are correct and (R) is the correct explanation of (A).

b.(A) is correct and (R) is incorrect.

c.Both (A) and (R) are incorrect.

d.(A) is incorrect, but (R) is correct.

14. The unbalanced growth model was propounded first by a. Albert O. Hirschman b. H.S. Singer and Raul Prebisch c. Kindelberger and Ragnar Nurkse d. W.W. Rostow and Paul Streeten

a.a and d

b.a and c

c.a and b

d.a only

15. Most important theory of increasing public expenditure is associated with a. Adolph Wagner’s hypothesis b. Critical limit hypothesis c. Administrative efficiency hypothesis d. Stability of income hypothesis

a.a and b

b.a only

c.a and c

d.c and d

16. Assertion (A) : All historical events are the result of a continuous economic struggle between different classes and groups in a society. Reason (R) : This struggle is because of the conflict between the mode of production and the value attached to the roles of different agents of production.

a.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

b.(A) is correct, but (R) is incorrect.

c.(A) is incorrect, but (R) is correct.

d.Both (A) and (R) are correct and (R) is the correct explanation of (A).

17. Harrod-Domar model of growth is based on the concepts of and their equality a. Population and productivity growth. b. Investment and average growth rate of income. c. Actual, warranted and natural growth rate. d. Productivity growth and investment growth.

a.a, b, c

b.a and d

c.c only

d.a and c

18. Human Development Index (HDI) is constructed with reference to a. Life expectancy at birth, real GDP per capita, gross enrolment ratio, adult literacy rate. b. Life expectancy at birth, real GDP per capita, combined gross enrolment ratio, adult literacy rate. c. Life expectancy, GDP per capita, infant mortality rate, literacy rate. d. GDP per capita, infant mortality rate, literacy rate

a.a and b

b.a, b, d

c.c only

d.a and c

19. Under the Brettonwood system, the long term development assistance was to be provided by a. IBRD b. IDA c. IMF d. All the above

a.a, b, c

b.b and c

c.d only

d.a and b

20. Assertion (A) : Use of goods and services from which one can be excluded are pure private goods. Reason (R) : Such goods and services are not provided free by the State.

a.Both (A) and (R) are correct and (R) is the correct explanation of (A).

b.(A) is incorrect, but (R) is correct.

c.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

d.(A) is correct, but (R) is incorrect.

UGC NET Mock Test 22 on Economics – 20 Questions for Practice

UGC NET Mock Test 22 on Economics – 20 Questions for Practice

Take Test 22 20 questions for Practice – Economics Test 22

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