UGC NET Mock Test 5 on Economics – 20 Questions for Practice

1. Which country stands at the top in 2011 Human Development Index ranking of 187 countries in H.D.I. Report – 2011?

2. Assertion (A) : The imposition of Sales Tax does not affect the profit of the monopolist.
Reason (R) : The monopolist shifts the burden of Sales Tax on to the consumer.

3. Macro economics distinguishes between the real economy and

4. Assuming fixed prices, which of the following statements are true?
1. Monetary policy is more effective, flatter the IS-curve.
2. Fiscal policy is less effective, flatter the LM curve.
3. Fiscal policy is more effective, flatter the LM curve.
4. Monetary policy is ineffective and fiscal policy is fully effective in liquidity trap.

5. By an unlimited supply of labour, Lewis meant

6. According to Mrs. Robinson, the stage of ‘Golden Age’ = _______.

7. Assertion (A) : There exits inverse relationship between interest rates and bond prices.
Reason (R) : A bond price represents the present discounted value of the payments agreed upon at the time when the bond was issued.

8. The pure monopolist obtains equilibrium level of output when

9. According to Kuznets, innovation is

10. Assertion (A) : The Natural Rate of Unemployment Hypothesis yields in the long run a vertical Phillips Curve.
Reason (R) : The Natural Rate of Unemployment assumes static price expectations.

11. Assertion (A) : A lump sum tax imposed on a monopolist cannot be shifted to the consumers.
Reason (R) : The lump sum tax becomes a part of his fixed cost and it does not affect the marginal cost of production.

12. According to Peacock and Wiseman’s analysis, public expenditure increases

13. Find out the incorrect statements from the following statements:
I. Savings, credits and insurance are the parts of microfinance.
II. Share of agriculture in the GDP has come down to below 11 percent in India recently.
III. CSO has revised the consumer price index series on new base 2011 = 100.
IV. Poverty estimation in India is done on NSSO data.

14. The case for progressive tax rates exists in terms of

15. Market demand for any goods is a function of
i. price per unit of that goods
ii. price per unit of related goods
iii. income of the consumer
iv. taste and preference of the consumer

16. According to whom, surplus value should be given to labour?

17. Which one of the following debt redemption methods is a process by which maturing debts are replaced by new bonds and there is no liquidation of the money burden of debt?

18. The transformation curve is derived from the

19. The approach of social dualism is connected with the following country :

20. Marginal Cost is less than the Average Cost when Average Cost falls with