UGC NET Mock Test 25 on Economics – 20 Questions for Practice

1. Assertion (A): The fiscal policy is less effective in an open economy than in a closed economy. Reasoning (R): Because the value of the multiplier in an open economy is less than that in a closed economy.

2. Arrange the concepts of Endogenous growth model in a sequential order : I. Production of ideas by research. II. Learning by doing. III. Learning by investment. IV. Learning by watching.

3. The share of the tax borne by the seller will be larger

4. The taxes which Kaldor proposed for India in 1956 to check tax evasion, supplementing income tax are I. Capital gains tax II. Annual tax on wealth III. Personal expenditure tax IV. Gift tax

5. Which of the following is relevant for Wagner’s Law of Increasing State Activities?

6. The Constitution of India provides for transfer of resources from Centre to States in the form of I. Tax sharing II. Loans III. Grants-in-aid IV. Grants for implementation of Five Year Plans

7. Assertion (A): According to Keynes, individuals hold either cash or all bonds. Reasoning (R): Because, according to him, the speculative demand for money is associated with uncertainty.

8. Select the correct statement out of the following:

9. Which one of the following is not a correct interpretation of the Golden Rule of Accumulation? It is that capital per person at which

10. Kaldor’s growth model is based on the following assumptions: I. Output consists of wages and profits only. II. Investment output ratio is an independent variable. III. MPS and MPC are constant. IV. There is less than full employment.

11. According to the cost based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than

12. In the context of IS-LM framework, which of the following statements is false?

13. Identify the correct chronology of implementation of the following taxes in India : I. Service taxes II. Fringe benefits tax III. Personal income-tax IV. Expenditure tax

14. For particular high values of marginal propensity to consume and the accelerator coefficient, explosive non-oscillatory cycles will occur in the model of the business cycles propounded by

15. Endogenous growth models have been developed by I. Kenneth J. Arrow II. Paul M. Romer III. Robert E. Lucas IV. R.M. Solow

16. Assertion (A): Dependence of Less Developed Countries (LDCs) on Developed Countries (DCs) is the main cause for the underdevelopment of the former. Reason (R): “This is because of historical evolution of a highly unequal international capitalist system of rich-poor country relationships.”

17. “A technical change is neutral if at a constant rate of profit or interest, the capital output ratio also remains constant.” This concept was propounded by

18. The non-plan revenue expenditure of Central Government on Revenue Account include: I. Interest payments II. Subsidies III. Grants-in-aid IV. Loans to Public Enterprises

19. Embodied technical change model is based on which production function?

20. Assertion (A): Innovations in one field rarely induce innovations in related fields. Reason (R): Once an innovation becomes profitable, other entrepreneurs follow it in “Swarm like clusters”.