UGC NET Mock Test 26 on Economics – 20 Questions for Practice

1. Assertion (A): Sunk costs are not relevant to economic decisions. Reason (R): The opportunity cost of such resources is zero.

2. Cochin Clark has argued that for most countries of the world, the safe upper limit of taxation is

3. Random sampling implies that

4. Which of the following are relevant in Zero Base Budgeting? I. Each item of expenditure is challenged in pre-budget review. II. No minimum level of expenditure is allowed to be taken as given. III. Expenditure of each item is increased marginally. IV. Most item of expenditure is taken for granted when budget is prepared for the next year.

5. Which of the following tax can be shifted easily?

6. Reservation wage means

7. χ2 (chi-square) test is used to test

8. For substitutes, cross elasticity of demand is

9. A model of oligopoly in which one business sets output before the other business do is

10. Assertion (A) : Fisher’s index is an ideal index. Reasoning (R) : Fisher’s index satisfies Time Reversal and Factor Reversal Tests.

11. Which of the following tax is within the jurisdiction of States as enumerated in List – II of the Schedule VII of the Constitution of India?

12. Which of the following is tantamount to absence of taxation?

13. In game theory model, strategies include I. The potential choices to change the price II. To develop new or differentiated products III. To introduce a new or different advertisement campaign IV. To build excess capacity

14. The permanent income hypothesis is consistent with cross-section and time series data because

15. Which of the following statements is true?

16. Who is widely known as the founder of Austrian School?

17. An economic region of production consists of

18. Elasticity of substitution is

19. Pareto optimum implies

20. In a binomial distribution, the sum of mean and variance is 15 and the product of mean and variance is 54, then the number of observations (n) is equal to